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NY N008056

March 16, 2007

MAR-2 RR:E:NC:SP:231


Mr. Troy D. Crago
Atico International USA, Inc.
501 South Andrews Avenue
Fort Lauderdale, FL 33301


Dear Mr. Crago:

This is in response to your letter dated March 9, 2007, requesting a country of origin ruling on certain cashews processed the United States from raw nuts imported from Brazil.

You have outlined a scenario in which bags of raw, shelled cashews of Brazilian origin will be shipped to the United States for further processing. In the United States, the cashew nuts will be roasted and canned. You identify the finished product as “Unsalted Whole Cashews” in 10-ounce cans, item number X019CA00046.

You ask whether, for marking purposes, the U.S. processing will result in a change in the country of origin of the nuts from Brazil to the United States.

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 a foreign article in the United States must effect a substantial transformation in order to render the final product a good of the U.S.

A substantial transformation occurs when a new and different article of commerce emerges from a process with a new name, character or use different from that possessed by the article prior to processing. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).

Treasury Decision (TD) 85-158, effective December 18, 1985, held that roasting, salting and/or blending of pistachio nuts did not constitute a substantial transformation of the raw pistachios into a new or different article of commerce. Customs and Border Protection (CBP) subsequently has issued rulings consistent with that TD. For example, in Headquarters Ruling 730058 (June 2, 1987) it was determined that the roasting of pecan nuts did not result in a substantial transformation of that product. And, in New York Ruling I83434 (July 22, 2002), it was held that the dry roasting of raw peanuts, cashews, pistachios and almonds did not effect a substantial transformation of the raw nuts.

Accordingly, we find that, for purposes of 19 U.S.C. 1304, the imported raw cashews of the present case are not substantially transformed into products of the U.S. by post-importation processing, but remain products of Brazil. Therefore, upon importation into the U.S., the certification procedures of 19 CFR 134.25 must be satisfied and, upon completion of domestic processing, the finished articles must be marked with their country of origin (e.g., “Product of Brazil”).

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 Nathan Rosenstein at 646-733-3030.


Robert B. Swierupski

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