CBP Says Additional Processing of Fragrances in China Doesn't Change Country of Origin

The packaging and dilution of perfume and cologne in China don't result in a change to the country of origin, CBP said in a Nov. 28 ruling (NY N301656). The colognes and perfumes therefore are not subject to the Section 301 tariffs on goods from China, the agency ruled. The ruling request came from Fantasia Accessories through Grunfeld Desiderio lawyer Kevin Leonard.

Fantasia sought CBP advice on the country of origin marking for five types of colognes and perfumes. The sprays each "consist of a single fragrance base which is currently supplied from either Singapore or Australia," and the company proposed to CBP either "Product of Singapore” or “Product of Australia” as acceptable country of origin markings. The processing of the single base in China includes blending "with alcohol, water and propylene glycol" and packaging in aerosol spray cans. "The blending process alters the viscosity of the fragrances so that they may be applied via a spray mechanism," the company told CBP. "No chemical reaction, change in structure, or intermixing of fragrance bases occurs during this processing."

That processing in China doesn't amount to a "substantial transformation," CBP said. "While the finished fragrances are made suitable for spraying by diluting the fragrance bases, they retain the same chemical identity and character as the precursor bases," the agency said. "In this case, the changes in concentration and viscosity which occur in China, do not result in a substantial transformation for origin purposes."

The proposed marking as products of Singapore or Australia would meet the country of origin requirements "if printed legibly, clearly, and in a conspicuous place," the agency said. Because the Section 301 duties apply based on country of origin and not country of export, the tariffs don't apply, CBP said. Based on the processing described during the manufacturing of the body mist sprays, the subject merchandise will not be subject to those additional duties upon importation.