HQ 085374: Animal Casings

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                         HQ 085374
                      October 3, 1989

CLA-2 CO:R:C:G  085374 SLR

CATEGORY: Classification

TARIFF NO.: 0504.00.0020; 0504.00.0040

Mr. Lee Hardeman
International Transportation Services
P.O. Box 45545
Atlanta, GA  30320-0545

RE: Animal Casings

Dear Mr. Hardeman:

     This ruling is in response to your letter of July 11, 1989,
on behalf of your client, Atlas Casing Company, requesting the
classification of natural animal casings under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA).  Samples
were provided for our examination.

FACTS:

     The instant merchandise is described as the small
intestines of hogs, sheep, and beef which are purchased from U.S.
slaughterhouses.  U.S. processors rid the small intestine of
ruffle fat, manure, and any excess residue.  The casing is then
cured in a salt solution.  After curing, the casings are packed
in pure salt in large barrels and shipped to China.  There,
processors wash the casings then inspect them for tears.  The
casings are then cut and grouped according to size, repacked in
the same barrels, and returned to the United States.

     In your letter, you express some confusion as to whether
the casings are classifiable under subheading 0504.00.0020,
HTSUSA, guts, bladders...for sausage casings, or subheading
9801.00.1035, HTSUSA, American goods returned.

ISSUES:

     What is the proper classification of natural animal casings
under the HTSUSA; and, what is their country of origin, for
marking purposes, upon their return to the U.S.?




                              -2-

LAW AND ANALYSIS:

     Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI), taken
in order.  GRI 1 provides that classification is determined
according to the terms of the headings and any relevant section
or chapter notes.

     The merchandise in issue falls squarely within the ambit of
subheadings 0504.00.0020 and 0504.00.0040, HTSUSA, which provides
for guts, bladders and stomachs of animals (other than fish),
whole and pieces thereof, prepared for use as sausage casings,
from hogs or from animals other than hogs.

     The processing performed in China advances the casings in
value and improves their condition.  Consequently, they are not
entitled to free entry under subheading 9801.00.1035, HTSUSA.
Since the processing in China is a step in the completion of the
casings, and does not constitute the alteration (or repair) of a
finished product, the provisions of subheading 9802.00.50,
HTSUSA, are also inapplicable.

     As to marking, the processing in China does not
substantially transform the casings into a new and different
article of commerce; hence, pursuant to 19 CFR 134.32(m), this
product is exempt from marking requirements.  This determination,
however, is not tantamount to an approval of marking the article
as "Product of the U.S."  As a matter of policy, Customs never
gives explicit approval to marking indicating U.S. origin.  We
ordinarily defer such authority to the FTC.  Here, it appears
that the USDA requires marking indicating domestic origin.  This
being the case, Customs would not reject an importation of
casings so marked.

HOLDING:

     The instant casings are classifiable under the provision for
guts, bladders and stomachs of animals (other than fish), whole
and pieces thereof, prepared for use as sausage casings in
heading 0504.00.00, HTSUSA, and free of duty.  If hog casings,
they are classifiable in subheading 0504.00.0020, HTSUSA.  If
beef or sheep casings, they are classifiable in subheading
0504.00.0040, HTSUSA.  This product is exempt from Customs
marking requirements.  Please contact FTC or USDA for further
information regarding any other marking requirements.

                                 Sincerely,


                                 John Durant, Director
                                 Commercial Rulings Division