United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1998 HQ Rulings > HQ 560811 - HQ 561018 > HQ 561003

Previous Ruling Next Ruling
HQ 561003





October 7, 1998

MAR-2 RR:CR:SM 561003 RSD

CATEGORY: MARKING

Robert Leo, Esq.
Meeks & Sheppard
330 Madison Avenue
New York, New York 10017

RE: Country of origin of an artificial sweetener called "Sucralose" made from sucrose

Dear Mr. Leo:

This is in response to your letter dated May 18, 1998, on behalf of McNeil Specialty Products Company (McNeil) regarding a country of origin determination for a new artificial sweetener known as "Sucralose". You have furnished several supporting exhibits which detail the processing involved in making sucrose into Sucralose.

FACTS:

The imported product is known as "Sucralose" which you state is an intensely sweet non-nutritive food sweetener created by the selective multi-step chemical modification of sucrose (sugar). The chemical formula for Sucralose is 4,1', 6'-Tricholoro-4,1l'6' trideoxygalactosucrose. McNeil proposes to obtain sucrose from Country A and import it into Country B, where the processing into Sucralose will occur.

According to your submission, the key operation that converts sucrose into Sucralose in Country B is the selective replacement of three sugar hydroxyl groups with chloride substituents. As a result of the processing, there is an intensification of the sweetness attributes of the molecules. The new compound is not digestible because mammalian digestive systems no longer recognize the new compound as a sugar. The sequence of chemical changes is critical because sugar possesses a total of eight hydroxyl groups capable of being replaced rather non-selectively by chloride under common reaction conditions. Several patented processes are involved in converting the sucrose into the Sucralose. These processes are explained in detail in the supplemental attachments. Sucrose's CAS No. is 57-50-1. Sucralose's CAS No. is 56038-13-2.

You state that Sucralose is non-caloric, and unlike sugar, can be used by diabetics and others who do not want to use sugar such as those persons who need to restrict their caloric, carbohydrate, and sugar intake. Sucralose will be sold and marketed as a replacement for such
other non-nutritive sweeteners as aspartame, saccharin, and/or acesulfame-K in virtually every type of food and beverage.

ISSUE:

Whether sucrose is substantially transformed when it is processed into the artificial sweetener Sucralose.

LAW AND ANALYSIS:

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 to 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. Congressional intent in enacting 19 U.S.C. ?1304 was "that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the good is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlaender & Co. 27 C.C. P. A. 297 at 302; C.A.D. 104 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), 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 the meaning of the marking laws and regulations. Accordingly, the country of origin of an article is the country in which it was wholly manufactured or, if processed in several countries, the country in which the article last underwent a substantial transformation. Simply stated, a substantial transformation occurs "when an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing." See Texas Instruments, Inc. v. United States, 69 CCPA 152, 681 F.2d 778 (1982) (cited with approval in Torrington Co. v. United States, 764 F. 2d 1563, 1568 (1985)).

In Headquarters Ruling Letter (HRL) 555989 dated June 24, 1991, Customs held that when chemical compounds are mixed together to form a different substance and the individual properties of each ingredient are no longer discernable, a substantial transformation results. In this case, the substance sucrose is converted into a different substance known as Sucralose through a series of patented processing operations. In order to better understand the difference between sucrose and Sucralose and the processing involved in making Sucralose from sucrose, we have consulted the Customs Service Office of Laboratory and Scientific Services Division. After reviewing the documents submitted, that office advised that the production of Sucralose from sucrose involves the chlorination and blocking and unblocking of certain reactive sites on the sucrose molecule. The Office of Laboratory and Scientific Services Division further advised that there is a fairly complex synthetic organic reaction mechanism occurring during this production process.

In reviewing the information contained in your submission as well as the comments received from the Laboratories and Scientific Services Division, we conclude that the conversion of sucrose into Sucralose results in a substantial transformation. First, we note that although the names of the products sound similar, the two products nonetheless clearly have different names. More significantly, sucrose and Sucralose are different chemical compounds with different chemical formulas and physical properties. The processing to convert sucrose into Sucralose is more than a simple refining process to remove impurities or change the form of the product such as from a liquid to a solid. Rather, the processing performed on sucrose to convert it to Sucralose involves a series of fairly complex chemical reactions which fundamentally alters its chemical structure.

We also note that the human body processes Sucralose very differently than it does sucrose. Sucralose is biochemically inert, and thus is indigestible, meaning that it has no nutritive use because it will be quickly egested from the body after it is eaten. On other hand, sucrose is digestible and will be broken down and absorbed by the body after being eaten. Because of this significant difference, Sucralose will be sold and marketed differently than sucrose. Sucralose will be sold as an artificial sweetener which is a non-caloric alternative to sugar. It will be marketed to people who wish to restrict their intake of sugars, such as diabetics. Therefore, we believe that sucrose and Sucralose are separate and distinct products and that the processing of sucrose into Sucralose results in a substantial transformation. Accordingly, the country of origin of the Sucralose would be the country where the processing to convert sucrose into Sucralose is performed. Therefore, the Sucralose imported into the United States must be marked accordingly.

HOLDING:

Based upon the information presented, we find that the processing of sucrose into Sucralose results in a substantial transformation. Therefore, the country of origin of the Sucralose will be country B (where the processing takes place), and the imported Sucralose must be marked accordingly.

A copy of this letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling