NY A86359 - COUNTRY OF ORIGIN MARKING OF IMPORTED FRUIT JUICE MIXTURE; ARTICLE 509 - United States International Trade Commision Rulings

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NY A86359

September 3, 1996

MAR-2 RR:NC:FC:232 A86359

CATEGORY: MARKING

Mr. John B. Rehm
Dorsey & Whitney LLP
Suite 200
1330 Connecticut Avenue, N.W.
Washington, D.C. 20036

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED FRUIT JUICE MIXTURE; ARTICLE 509

Dear Mr. Rehm:

This is in response to your letter dated August 2, 1996, on behalf of Daystar Robinson, Inc., requesting a ruling on the country of origin marking requirements for an imported article which is processed in a NAFTA country prior to being imported into the U.S. Your letter also requests a ruling on the country of origin marking requirements of an imported article which is processed in a Non-NAFTA country prior to being imported into the U.S. Marked samples were not submitted with your letter for review.

The subject merchandise consists of two different mixtures of fruit juices. Grape juice or grape juice concentrate produced in Argentina and strawberry juice or strawberry juice concentrate produced in Germany will be sent to Canada, where they will be mixed. The grape juice will constitute, in single strength form, 10 percent by volume of the mixture and the strawberry juice will constitute the remaining 90 percent of the mixture. The second mixture will consist of grape juice or grape juice concentrate produced in Chile and red raspberry juice or red raspberry juice concentrate produced in Germany which is sent to Panama to be mixed. The grape juice will constitute, in single strength form, 8 percent by volume of the mixture, and the red raspberry the remaining 92 percent. This ruling will first address the juice mixture processed in Canada and then the juice mixture processed in Panama.

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

Section 134.1(b) of the regulations, defines "country of origin" as
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).

Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.

You state that the imported grape juice/strawberry juice mixture is processed in a NAFTA country "Canada" prior to being imported into the U.S. Since, "Canada" is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported grape juice/strawberry juice mixture is a good of a NAFTA country", and thus subject to the NAFTA marking requirements.

Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported grape juice/strawberry juice mixture is a good of Germany for marking purposes, noting Sections 102.20(d) and 102.18(b)(1).

For purposes of the grape juice/strawberry juice mixture, this ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).

Your request also concerned a grape juice/red raspberry juice mixture processed in a Non-NAFTA country "Panama". In this case, because the imported fruit juice mixture is not a good of a NAFTA country, the NAFTA Marking Rules do not apply, rather the general substantial transformation test cited in 19 CFR 134.1(b) must be applied in order to determine the country of origin of the imported juice mixture for marking purposes. A substantial transformation occurs when an article loses its identity and becomes a new article having a new name, character or use.

Based on the facts of this case, we find that the mixture of grape juice and red raspberry juice is a substantial transformation, producing a new article with a new name, character or use. Therefore, the country of origin for marking purposes of the grape juice/red raspberry juice mixture is Panama. Accordingly, the article or its container must be marked to indicate Panama as the country of origin in accordance with the general marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134.

For purposes of the grape juice/red raspberry juice mixture, this ruling is being issued under the provisions of Part 177 of the Customs regulations (19 CFR Part 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist John Maria at 212-466-5730.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave., NW, Franklin Court, Washington, DC 20229.

Sincerely,

Roger J. Silvestri
Director,

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