HQ 086051: Butter Ghee

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 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.


                               -2-


     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




                               -3-


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
                                     Commercial Rulings Division