N312451

N312451 July 9, 2020 MAR-2 OT:RR:NC:N2:231 CATEGORY: ORIGIN Ms. Hazel Cua-Ling Flegenheimer International 227 W. Grand Avenue El Segundo, CA 90245 RE: The country of origin of Frozen Half Shell Scallop and Frozen Scallop Meat Dear Ms. Cua-Ling: In your letter dated June 14, 2020, you requested a country of origin ruling determination on behalf of L & L International Inc. for “Frozen Half Shell Scallop” and “Frozen Scallop Meat”. You have presented three scenarios pertaining to the merchandise at issue as follows: In the first scenario, wild caught Japanese scallops harvested from the Food and Agriculture Organization (FAO) of the United Nations Major Fishing Area 61 (Pacific-Northwest) is exported frozen, whole, in shell to China. In China, the top shell is removed thus creating a half shell; the scallops are cleaned and individually quick frozen (IQF). The finished product, “Frozen Half Shell Scallop,” will be imported in bulk quantities ranging from 2-pounds to 30-pounds, and sold to the food service industry and retail stores. In the second scenario, the above-described product is shucked leaving the abductor muscles of the scallop, referred to as “scallop meat,” which is then frozen and exported to China. In China, the scallops are defrosted, soaked in a solution containing sodium tripolyphosphate and individually quick frozen (IQF). The finished product, “Frozen Scallop Meat,” will be imported in bulk and retail packages ranging from 1-pound to 30-pounds, and sold to the food service industry and retail stores. In the third scenario, the above-described product is exported frozen, whole, in shell to China. In China, the whole scallops are defrosted then shucked leaving the abductor muscles of the scallop, which is then soaked in a solution containing sodium tripolyphosphate and individually quick frozen (IQF). The finished product, “Frozen Scallop Meat,” will be imported in bulk and retail packages ranging from 1-pound to 30-pounds, and sold to the food service industry and retail stores. With regard to country of origin, 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. Pursuant to 19 CFR Section 134.1(b), the country of origin is 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 country the country of origin within the meaning of Part 134 of the regulations. A substantial transformation occurs when an article loses its identity and becomes a new article having a new name, character or use. United States v. Gibson-Thomsen Co., 27 CCPA 267 (1940); National Juice Products Association v. United States, 10 CIT 48 (1986). Whether a substantial transformation occurs is determined on a case-by-case basis. In Koru North America v. United States, 701 F. Supp. 229 (CIT 1988), the court considered whether the processing of headed and gutted fish in South Korea by thawing, skinning, boning, trimming, freezing, and packaging constituted a substantial transformation. The court concluded that the processing performed in South Korea into “quick- frozen” fillets substantially transformed the headed fish because there was a change in name and character. The court noted that while the fish arrive in South Korea with the look of a whole fish, when they leave they no longer possess the essential shape of a fish. The fillets were considered discrete commercial goods and had a different tariff classification. In the first scenario, the scallops are harvested in Japan, processed in China, (i.e., single shell removal, cleaned), then are refrozen and shipped back to the United States. We find that the scallops have not been substantially transformed because of the processing in China, and that therefore the country of origin of the finished product is Japan. In the second scenario, the scallops are harvested and processed in Japan, (i.e., shucked) then exported to China where they are soaked in sodium tripolyphosphate, refrozen and shipped back to the United States. We find that the scallops have not been substantially transformed because of the processing in China, and that therefore the country of origin of the finished product is Japan. In the third scenario, the scallops are harvested in Japan, processed in China, (i.e., shucked) then soaked in sodium tripolyphosphate, refrozen and shipped back to the United States. We find that the scallops have not been substantially transformed because of the processing in China, and that therefore the country of origin of the finished product is Japan. Please note that seafood is subject to the Mandatory Country of Origin Labeling (“COOL”) requirements administered by the USDA’s Agricultural Marketing Service (AMS), we advise you to check with that agency for their further guidance on your scenario. Contact information for AMS at USDA-AMS-LS-SAT, Room 2607-S, Stop 0254, 1400 Independence Avenue, SW Washington, DC 20250-0254, Tel. (202) 720-4486 or Website: www.ams.usda.gov/COOL, Email address for inquiries: COOL@usda.gov. This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling the FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html. 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, contact National Import Specialist Ekeng Manczuk at ekeng.b.manczuk@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division