N331524

N331524 April 11, 2023 CLA-2-07:OT:RR:NC:N2:228 CATEGORY: Country of Origin; Marking Angela Herbert A.N. Deringer, Inc. 173 West Service Rd Champlain, NY 12919 United States RE: The country of origin and marking of salad mixes from Canada and Mexico Dear Ms. Herbert: In your letter dated March 14, 2023, you requested a binding ruling on the country of origin and marking of salad mixes on behalf of your client, Vegpro International Inc. An ingredients breakdown, and pictures of the product labeling accompanied your inquiry. The subject merchandise is described as ready-to-eat salad kits comprised of ingredients from Mexico, Canada, and the United States. Each kit is comprised of ingredients that when mixed create a salad for one individual. All ingredients originate within the United States, Mexico, and Canada, with assembly and packaging occurring in Canada. Additional manufacturing processes that are said to be performed in Canada include the following: the lettuce is cleaned, cut-up into bit size pieces and placed into recycled plastic kit bowls. Inserts are added on top of the lettuce that include various additional ingredients such as the salad dressing, bacon bits, and other components of the salad kits including shredded asiago cheese, croutons, tex mex cheese and seasoned tortillas wraps. Kit number 1, “Caesar Salad Kit,” is said to contain 63 percent cut romaine lettuce (Canada and/or USA, and/or Mexico), 22 percent Caesar dressing (USA), 7 percent shredded asiago cheese (Canada), 6 percent croutons (Canada), and 2 percent bacon-flavored bits (Mexico). The Caesar Salad Kit will be imported in 175-gram (6.2 oz.) containers. Kit number 2, “Southwest Salad Kit,” is said to contain 61 percent cut romaine lettuce (Canada and/or USA, and/or Mexico), 23 percent southwest-style dressing (USA), 6 percent each of tex mex cheese (Canada), seasoned tortillas wraps (USA) and 5 percent shredded carrots (Canada and/or USA). The Southwest Salad Kit will be imported in 175-gram (6.2 oz.) containers. COUNTRY OF ORIGIN AND MARKING: 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" is defined in 19 CFR 134.1(b) 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 this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.” Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11. Applied in sequential order, 19 CFR Part 102.11(a) provides that the country of origin of a good is the country in which: (1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. “Domestic is defined in Section 102.1(d), as “a material whose country of origin as determined under these rules is the same country as the country in which the good is produced.” “Foreign material” is defined in Section 102.1(e) as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.” In your request, you have stated that the meal kits described above qualify as originating goods under General Note 12 (b) no matter whether the fresh vegetables come from Canada or the United States because they meet the requirements of General Note 12(b)(ii)(A) and 12(t)/7.1. You further state that “Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, the country of origin of the imported meal kits is Canada no matter whether the fresh vegetables come from Canada or the United States.” Based on the analysis set forth below, we disagree with your country of origin and marking statement. Furthermore, please note that General Note 12(b), Harmonized Tariff Schedule of the United States (HTSUS), sets forth the criteria for determining whether a good is originating under the NAFTA. The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018 and has replaced NAFTA. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). Since the salad kits are comprised of U.S., Canadian, and Mexican components, they are neither wholly obtained or produced, nor produced exclusively from domestic materials. Therefore, sections 102.11(a)(1) and (a)(2) do not apply to the facts presented in this case. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin determination, we look to section 102.11(a)(3). Section 102.11(a)(3) provides that the country of origin is the country in which “each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 CFR 102.20 and satisfies any other applicable requirements of that section.” Each foreign material must be separately analyzed under 19 CFR 102.11(a)(3). The applicable subheading for the Caesar Salad Kit and Southwest Salad kit, if entered in the period from June 1 to October 31, will be 0705.19.2000, HTSUS, which provides for Lettuce (Lactuca sativa)…fresh or chilled…other. If entered at any other time the salad kits will be classified in subheading 0705.19.4000, HTSUS. The tariff shift requirement in Part 102.20 for heading 0705, HTSUS, at issue states: “A change to heading 0701 through 0709 from any other chapter.” The foreign materials in the Caesar Salad Kit are the bacon-flavored bits (Mexico), Caesar dressing (USA) and cut romaine lettuce (when sourced from the USA, and/or Mexico). The bacon-flavored bits and the Caesar dressing undergo the necessary change in tariff classification. However, the romaine lettuce is classified in subheading 0705.19.20 or 0705.19.40, HTSUS. Since this is the same classification as the Caesar Salad Kit, the tariff shift rule is not satisfied. The foreign materials in the Southwest Salad Kit are the seasoned tortilla strips (USA), Southwest style dressing (USA) shredded carrots (when sourced from the USA) and the cut romaine lettuce (when sourced from the USA, and/or Mexico). The seasoned tortilla strips, and the Southwest style dressing undergo the necessary change in tariff classification. However, the shredded carrots are classified under subheading 0706.10.1000, HTSUS. The romaine lettuce is classified in subhead

set forth below, we disagree with your country of origin and marking statement.Furthermore, please note that General Note 12(b), Harmonized Tariff Schedule of the United States (HTSUS), sets forth the criteria for determining whether a good is originating under the NAFTA. The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018 and has replaced NAFTA. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)).Since the salad kits are comprised of U.S., Canadian, and Mexican components, they are neither wholly obtained or produced, nor produced exclusively from domestic materials. Therefore, sections 102.11(a)(1) and (a)(2) do not apply to the facts presented in this case. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin determination, we look to section 102.11(a)(3).Section 102.11(a)(3) provides that the country of origin is the country in which “each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 CFR 102.20 and satisfies any other applicable requirements of that section.” Each foreign material must be separately analyzed under 19 CFR 102.11(a)(3).The applicable subheading for the Caesar Salad Kit and Southwest Salad kit, if entered in the period from June 1 to October 31, will be 0705.19.2000, HTSUS, which provides for Lettuce (Lactuca sativa)…fresh or chilled…other. If entered at any other time the salad kits will be classified in subheading 0705.19.4000, HTSUS.The tariff shift requirement in Part 102.20 for heading 0705, HTSUS, at issue states:“A change to heading 0701 through 0709 from any other chapter.”The foreign materials in the Caesar Salad Kit are the bacon-flavored bits (Mexico), Caesar dressing (USA) and cut romaine lettuce (when sourced from the USA, and/or Mexico). The bacon-fla