NY F85468 - COUNTRY OF ORIGIN MARKING OF IMPORTED CONCENTRATED APPLE JUICE BLEND; ARTICLE 509 - United States International Trade Commision Rulings

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NY F85468

April 19, 2000

MAR-2 RR:NC:SP:232 F85468

CATEGORY: MARKING

Mr. James Lin
Natural Healing Centre
Summerville Plaza, 1 Paton Street, Suite 231 St. John’s, Newfoundland, Canada A1B 4S8

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED CONCENTRATED APPLE JUICE BLEND; ARTICLE 509

Dear Mr.Lin:

This is in response to your letter dated April 4, 2000 requesting a ruling on the country of origin marking requirements for an imported article, which is claimed to be a good of a NAFTA country, that is later to be further processed in the U.S. into a finished article. A marked sample was not submitted with your letter for review.

Additional information was submitted in your fax received April 18, 2000. The subject merchandise is described as a concentrated apple juice blend which will be exported from Canada to the United States. The ingredients in the blend include Less Sour Apple Juice Concentrate produced in China, and Sour Apple Juice Concentrate produced in Switzerland. Both apple juice concentrates are produced using the following processes: apple washing, milling, pressing, aroma recovery, enzyme station, ultra-filtration, concentration and aseptic filling. Each of the apple juice concentrates is shipped to Canada for further processing. The processing in Canada includes diluting the Less Sour Juice Concentrate with deionized water, and mixing it with the Sour Juice Concentrate. The concentrates are then further diluted with deionized water, blended, ultra-filtrated and concentrated. The blend is then filled (aseptic), labeled, stored and exported. The product will be imported in 200 liter metal drums. You indicated in a telephone conversation with this office on April 18, 2000 that after importation, the concentrated apple juice blend will be reconstituted into single strength apple juice and packaged for retail sale.

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 concentrated apple juice blend is imported from a NAFTA country, which is later to be processed in the U.S. into a finished article . In order to determine the country of origin marking requirements, first, we must apply the NAFTA Marking Rules in order to determine whether the imported concentrated apple juice blend "is a good of a NAFTA country".

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 concentrated apple juice blend is a good of “China” and “Switzerland”, non-NAFTA countries. Noting Section 102.11 (a) (3), the apple juice blend does not undergo the applicable change in tariff classification set out in Section 102.20 (d) by the processing performed in Canada. The apple juice concentrates from China and Switzerland are the materials that impart the essential character of the product, noting Section 102.11 (b) (1).

The only issue which remains is to determine who is the ultimate purchaser of the imported concentrated apple juice blend. Since the imported concentrated apple juice blend is not a good of a NAFTA country, the general substantial transformation test (change in name, character or use), must be applied in order to determine who is the ultimate purchaser pursuant to 19 CFR 134.35(a) of the regulations.

In this case, we find that the imported concentrated apple juice blend is not substantially transformed as a result of the U.S. processing, which you indicated reconstitutes the concentrate for retail sale, and therefore the U.S. manufacturer is the not the ultimate purchaser of the imported product. Rather, the ultimate purchaser is the consumer who purchases the reconstituted apple juice blend. Accordingly, the imported article and/or container must be marked to indicate "China" and “Switzerland” as the countries of origin of the concentrated apple juice blend in accordance with the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. The retail container of the reconstituted apple juice blend must also be marked to indicate “China” and “Switzerland” as the countries of origin.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).

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 212-637-7059.

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, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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