CLA-2 CO:R:C:G: 083178 NLP
Mr. W.T. Corcoran
Manager, Customs
F.W. Myers & Co., Inc.
West Service Road at I-87
P.O Box 188
Champlain, New York 12919
RE: Country of Origin marking and Tariff Classification of Nakiuk
Fur boots from Canada
Dear Mr. Corcoran:
This is in response to your letter, dated August 15, 1988,
for a country of origin marking and tariff classification ruling
for the "Nakiuk Fur Boot" under the Harmonized Tariff Schedule of
the United States (HTSUS). A sample was submitted for
examination.
FACTS:
The submitted sample is a pair of brown Nakiuk Fur boots,
style no. 4751. The fur on the boots is made from Normandie
cow-hide and is imported from France into Canada. The rubber
soles of the boots are also made in France and imported into
Canada to be used in making the boots. The rubber soled bottoms
of the boots are marked "Made in France."
The fur boots are 12 inches high and have cowhide uppers
that have been tanned. The cowhide uppers still have the cow
hair/fur intact and cover most of the exterior surface of the
upper. There are also 8 leather/metal eyelet stays riveted along
the sides of the boots and on the boot shafts. A string lace
will pass through the rivets and will be tied at the shin. Each
boot has a removable foam padded textile bootie liner, a plastic
foam insole, a paperboard heel counter and a stitched-on, 2-1/2
inch high, molded rubber cup-sole bottom.
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ISSUES:
1. Does the merchandise at issue meet the country of origin
marking requirements?
2. What material constitutes the external surface of the Nakiuk
Fur boots for tariff classification purposes under the HTSUS?
LAW AND ANALYSIS:
Issue 1- Country of Origin marking
Section 304 of the Tariff Act of 1930, as amended (19
U.S.C. 1304), requires that, unless excepted, every article of
foreign origin, or its container, must be legibly, permanently,
and conspicuously marked to indicate the country of origin to an
ultimate purchaser in the United States. The primary purpose of
the country of origin marking statute is to "mark goods so that
at the time of purchase the ultimate purchaser may, by knowing
where the goods were produced, be able to buy or refuse to buy
them, if such marking should influence his will." National Juice
Products Association v. United States, 10 CIT 48, 628 F. Supp.
978 (1986), and United States v. Friedlaender & Co., 27 CCPA
297, 302, C.A.D. 104 (1940).
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. Country of origin is defined in section 134.1(b) as
the country of manufacture, production, or growth of any article
of foreign origin entering the United States. 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 the meaning of this part.
For a substantial transformation to be found, an article
having a new name, character, or use must emerge from the
processing. United States v. Gibson-Thomsen Co., Inc. 27 CCPA
267 (1940). In the instant case, the fur and unattached rubber
soles are imported from France into Canada. It is in Canada that
the fur is cut, sewn to the rubber sole, died and brushed. As a
result of this manufacturing process, the fur and the rubber sole
are substantially transformed into the Nakiuk Fur boots.
Therefore, Canada is the country of origin of the instant
merchandise.
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To meet the requirements of 19 U.S.C. 1304, each boot of the
pair must be marked legibly, conspicuously and permanently to
indicate that Canada is the country of origin. In the instant
case, the bottom of the soles are marked "Made in France". This
marking should be changed to indicate that the boots are a
product of Canada, not France.
Issue 2 -HTSUS Classification
The General Rules of Interpretation (GRI's) set forth the
manner in which merchandise is to be classified under the HTSUS.
GRI 1 requires that classification be determined first according
to the terms of the headings of the tariff and any relative
section or chapter notes and, unless otherwise required,
according to the remaining GRI's, taken in order.
Within the limits of Chapter 64, it is the constituent
material of the outer sole and the upper that determines tariff
classification under headings 6401 to 6405, HTSUS. The issue in
this case is whether the boots have uppers of leather or of
furskin. Note 4(a) to Chapter 64 provides:
(a) The material of the upper shall be taken to be the
constituent material having the greatest external
surface area, no account being taken of accessories
or reinforcements, such as ankle patches, edging,
ornamentation, buckles, tabs, eyelet stays or
similar attachments.
In determining whether the boots are made of furskin or
leather, we look to Chapter 43, which provides for furskins and
artificial fur; manufactures thereof. Note 1 to Chapter 43
states the following:
Throughout the tariff schedule references to
"furskins", other than to raw furskins of heading 4301,
apply to hides or skins of all animals which have been
tanned or dressed with the hair on.
The Explanatory Notes to Chapter 43, which constitute the
official interpretation of the HTSUS at the international level,
provide further guidance in determining whether the cow hair on
the Nakiuk Fur boots are considered to be furskin. The
Explanatory Notes to heading 4302, which provide for tanned or
dressed furskins, state in pertinent part:
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It is to be noted that skins with the hair on, of the
kinds excluded from heading 43.01 (such as pony skins,
calfskins, and sheepskins), fall in this heading if
tanned or dressed.
Since the Nakiuk Fur boots are made of tanned hair-on cow skin,
they are considered to be made of furskin rather than leather.
Thus, furskin is the material which constitutes the greatest
external surface area of the boots.
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HOLDING:
The Nakiuk Fur boots are properly classifiable under
subheading 6405.90.9000, which provides for footwear in which the
upper's external surface is predominately other than leather,
composition leather, textile materials or rubber and/or plastics.
The applicable rate of duty is 12.5% ad valorem. Articles
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originating in Canada and classified in this subheading are
eligible for a duty rate of 10% ad valorem under the United
States-Canada Free Trade Act, if all applicable requirements are
met.
Sincerely,
John Durant, Director
Commercial Rulings Division