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March 10, 1999

MAR-2:RR:NC:2:228 D86757

CATEGORY: MARKING

TARIFF NO.: 9801.00.1097

Ms. Jean Archer
Border Brokerage Company, Inc.
P.O. Box 3549
Blaine, WA 98231

RE: The country of origin marking and tariff classification of food supplements produced in the United States from foreign ingredients, exported to Canada and returned; Article 509

Dear Ms. Archer:

In your letter dated January 6, 1999, on behalf of Albi Imports Limited, Burnaby, British Columbia, Canada, you requested a ruling on the country of origin marking and tariff classification for food supplements exported to and returned from Canada.

Your client will import “ginsenoside 80%,” a product of China, and “ginseng dry extract 27%,” a product of Spain, into Canada in bulk, and ship them, without further processing, to Albi Imports USA, Blaine, Washington. Albi Imports USA will mix the two ingredients together, and send the blend to Captek Softgel, Cerritos, California, where the material will be encapsulated into gelatin capsules. The finished capsules, “Korean Red Ginseng Softgel Capsules (KRG)” will be exported in bulk to Albi Imports Limited, and subsequently returned, still in bulk, to Albi Imports USA, for repackaging.

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 marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

Section 134.1(b) of the regulations, defines "country of origin" as
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 other country the "country of origin within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).

Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.

Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the Korean Red Ginseng Softgel Capsules (KRG) are goods of the United States for marking purposes. In general, articles of United States origin are not subject to the requirements of 19 U.S.C. 1304. The Federal Trade Commission (FTC) has jurisdiction concerning the marking of American made articles. Any inquiries on that subject should be directed to the FTC. Their address is Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508. The applicable tariff provision for the imported Korean Red Ginseng Softgel Capsules (KRG) will be 9801.00.1097, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad...other...other. Products classified in subheading 9801.00.1097 are free of duty.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).

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 Stanley Hopard at 212-637-7065.

Sincerely,

Robert B. Swierupski
Director,

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