N350768

N350768 July 28, 2025 CLA-2-21:OT:RR:NC:N5:228 CATEGORY: Classification; County of Origin; Marking; Trade Agreement TARIFF NO.: 2005.99.9700; 9903.01.24; 9903.01.25; 9903.88.03 Byung Wan Lee JangBaek Customs Attorney 4F, 24, Dosandaero38, Kangnam Seoul 06049 South Korea RE: The tariff classification, country of origin, marking and eligibility for preferential tariff treatment under the United States-Korea Free Trade Agreement of a prepared vegetable from China. Dear Mr. Lee: In your letter dated June 30, 2025, you requested a ruling on the tariff classification, country of origin, marking and eligibility for preferential tariff treatment under the United States-Korea Free Trade Agreement on behalf of your client, Banchandanji Co., LTD. An ingredients breakdown, a description of the manufacturing process, in addition to a picture of the product and an example of the product labeling accompanied your inquiry. The subject merchandise is described as Kimchi which consists of oval-shaped napa cabbage with a red and spicy seasoning carefully worked into each leaf, allowing the flavors to fully meld. The product is said to contain salted napa cabbage (China), radish (Korea), anchovy fish sauce (Korean anchovy-based liquid fermented jeotgal) (Korea), red pepper powder (China), frozen garlic (China), sugar (Korea), ginger (Korea), glutinous rice flour (Korea), refined salt (Korea), and monosodium glutamate (Korea). The product is first packed in a plastic pouch (inner packaging) with a net weight of 10kg. (22 pounds) and then placed in a plastic container for refrigerated transport to the United States. The product is manufactured in South Korea by first preparing the seasoning which consists of chopping the radish, garlic and ginger, mixing with water and glutinous rice flour, boiling, cooling and combining with red pepper powder and other ingredients. Next, the seasoning is thoroughly mixed by hand with the salted napa cabbage subsequent to being transferred to a storage room where it undergoes fermentation so that the seasoning is absorbed in the cabbage layers. The seasoned product is stored in sealed containers to prevent contact with outside air for the fermentation process to finish. This process takes approximately 1 to 7 days to complete when maintained at temperatures between 0–10°C. CLASSIFICATION The applicable subheading for the product will be 2005.99.9700, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006…other vegetables and mixtures of vegetables... other…other. The general rate of duty will be 11.2 percent ad valorem. Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 2005.99.9700, HTSUS, listed above. Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries, including China, will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, HTSUS, in addition to subheading 2005.99.9700, HTSUS, listed above. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 2005.99.9700, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 2005.99.9700, HTSUS, listed above. The HTSUS, is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. The tariffs and additional duties cited above are current as of this ruling’s issuance. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/. COUNTRY OF ORIGIN AND MARKING Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. 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 goods 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.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP 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 United States. 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. A substantial transformation occurs when, as a result of manufacturing, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940). In your request you have stated that through the mixing of vegetables and seasoning sauce, along with additional processing in South Korea, the product undergoes a transformation in its physical characteristics, resulting in kimchi that is entirely different from the original raw materials. We disagree. Based on the description of the product, narrative description of the manufacturing process, and picture of the finished product provided, the county of origin of the instant food product will be China. In N348683, dated June 5, 2025, olives from Spain and Greece subjected to further processing which included fermentation, brining, pitting and stuffing with ingredients, was determined to not effect a substantial transformation. In N326044, dated June 8, 2022, CBP ruled that fresh garlic bulbs that were placed in a fermenter, toasted, and mixed with rice hull were not substantially transformed as a result of the processing in South Africa. The final product, a black garlic seasoning, remained a produ

set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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, please contact National Import Specialist Timothy Petrulonis at timothy.petrulonis@cbp.dhs.gov. 
Sincerely,
 (for) James Forkan Acting Director National Commodity Specialist Division