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HQ 086051

March 14, 1990

CLA-2 CO:R:C:G 086051 STB

CATEGORY: COUNTRY OF ORIGIN

TARIFF NO.: 0405.00.8020

Mr. Lachman Bhatia
Alpha Internationale, Inc.
P.O. Box 16502
Arlington, Virginia 22215

RE: Butter Ghee

Dear Mr. Bhatia:

This is in response to your letter of November 24, 1989 concerning the importation of butter ghee from Australia.

FACTS:

The subject product is to be manufactured in Australia, and then shipped to Singapore in bulk. The butter ghee is going to be repacked into consumer packs in Singapore, and then exported to customers in different parts of the world. The manufacturers possess an Australian certificate of origin/processing, but do not possess a certificate of origin/processing from the Republic of Singapore. The butter ghee was classified under subheading 0405.00.8020 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), in Headquarters Ruling Letter (HRL) #084975.

ISSUES:

1. Whether the butter ghee can be imported to the United States in this manner, without a certificate of origin/processing from the Republic of Singapore.

2. What are the quota and marking considerations?

LAW AND ANALYSIS:

The important question affecting the first issue is whether a substantial transformation of the butter ghee occurs in Singapore. The answer is no; repacking for consumer purposes does not constitute a substantial transformation of a product. Therefore, a certificate of origin/processing from the Republic of Singapore is not necessary.

However, as a result of the applicable quota under subheading 9904.10.24, HTSUSA, no butter ghee from any country may be imported into the United States for the balance of the calendar year of 1990. This quota applies to:

Butter substitutes containing over 45 percent by weight of butterfat provided for in subheading 0405.00.80 or 2106.90.15 and butter oil however provided for in the tariff schedule.

The quota allocation for all countries under this subheading is 544,310 kilograms per calendar year. This quota normally closes (fills) on the opening day; such was also the case this year.

Proper marking is also a consideration in the instant case. Butter ghee which is the product of Australia, but packed in Singapore, should be marked with the country of origin in accordance with U.S. marking requirements in Section 304 of the Tariff Act of 1930, as amended, 19 U.S.C. 1304. The consumer packs should be marked to indicate that Australia is the country of origin.

There are also other agencies whose rules and regulations may impact upon the importation of butter ghee. Information regarding applicable regulations administered by the U.S. Department of Agriculture may be addressed to that agency at the following location:

U.S. Department of Agriculture
A.P.H.I.S., Veterinary Services
Federal Building, Room 838
Hyattsville, MD 20782

The U.S. Food and Drug Administration may be contacted at:

U.S. Food and Drug Administration
Division of Regulatory Guidance
HFF 314, 200 C Street, S.W.
Washington, D.C. 20204

HOLDING:

It is allowable to import the butter ghee in the manner that you have described in your letter. However, an Australian Certificate of origin/processing is needed. Under subheading 9904.10.24, HTSUSA, butter ghee may not be imported into the United States for the remainder of the year. Section 304 of
the Tariff Act of 1930, as amended, and implementing Customs Regulations concerning marking, and regulations promulgated and administered by other agencies, must also be considered in the importation of butter ghee.

Sincerely,

John Durant, Director

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