THE COUNTRY OF ORIGIN OF ACEROLA CONCENTRATE POWDER

N198995 January 25, 2012 MAR-2 OT:RR:NC:N2:228 CATEGORY: MARKING Ms. Erin Milito Access Business Group International LLC 7575 Fulton Street East 58A-1B Ada, MI 49355 RE: THE COUNTRY OF ORIGIN OF ACEROLA CONCENTRATE POWDER Dear Ms. Milito: This is in response to your letter dated December 21, 2011 requesting a country of origin ruling on Acerola Concentrate Powder (R3282Q). Acerola Concentrate Powder is said to be beige to yellowish brown powder, composed of 50-80 percent Acerola juice concentrate and 20-50 percent cornstarch. The product is produced as follows: fresh Acerola berries grown in Brazil are selected and mashed. The pulp and skin are removed. The resulting Acerola juice is homogenized, PH adjusted and pasteurized. Then the Acerola juice concentrate is exported in frozen form to Germany. In Germany, cornstarch is added to the concentrate. The mixture is vacuum dried, sieved and milled to become a finish product. 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, U.S. Customs and Border Protection Regulations (19 C.F.R. §134) implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304. Part 134.1(b) of the regulations (19 C.F.R. § 134.1(b)), defines "country of origin" as: [T]he 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… 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. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). In this case, when the frozen juice concentrate is exported from Brazil to Germany, where cornstarch is added to create the finished product, the frozen juice concentrate loses its original character, resulting in a substantial transformation, and becomes a new product. The country of origin of the Acerola concentrate powder is Germany. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Bruce N. Hadley, Jr. at (646) 733-3029. Sincerely, Thomas J. Russo Director National Commodity Specialist Division