CLA-2-14:OT:RR:NC:N2:228
Mr. Sudheer Chikkere
Ecoiria, LLC
60 Parkridge Drive – Suite #7
San Francisco, CA 94131
RE: The tariff classification, country of origin, and marking of coco peat, and coco mats from Sri Lanka
Dear Mr. Chikkere:
In your letter dated March 27, 2013 you requested a tariff classification ruling.
A test report for the coco peat, and images of the three products accompanied your letter. On May 8, 2013 you provided representative samples of the coco mats, and the manufacturing process. The samples were examined and disposed of. Coco peat is made from coconut husks which are from the outer surface of coconuts. The coco peat is washed, heat-treated, and graded into products of various granularity and density which are then used for horticulture and agricultural applications. Coco peat is used as a growing medium by mixing with required nutrients to support plant growth, and will be sold loose in bags, or in compressed block form.
The coco mats for which you seek classification advice will be imported in rectangular sheets measuring 4-feet x 8-feet and will vary from 6 mm to 8 mm in thickness. These mats, which according to your literature, are also known as grow mats, are designed to lie underneath containers to allow plant roots to grow under and through where moisture is retained between various flood cycles.
According to your correspondence these mats are produced as follows:
The coco fibers are extracted from coconut shells, soaked in pits to swell and soften them and finally sun dried to enhance their elasticity.
These fibers are then spread out in layers over a frame and sprayed with a latex binder and this process is repeated until the desired thickness is met.
These mats are then run through a roller machine which compresses the layers.
While not specifically mentioned in your correspondence, and noting the representative samples that you submitted, there appears to be needling incorporated into the manufacturing process. The instant samples were informally weighed and were found to weigh approximately 1,294 grams per square meter.
The applicable subheading for the coco peat will be 1404.90.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for vegetable products not elsewhere specified or included . . . other . . . other . . . other. The rate of duty will be free.
The applicable subheading for the coco mats will be 5603.94.9090, HTSUS, which provides for nonwovens, whether or not impregnated, coated, covered or laminated, of other than filaments, weighing more than 150 g/m². . . of stable fibers. The rate of duty will be free.
Your inquiry does not provide enough information for us to give a classification ruling on the coco pots. Your request for a classification ruling should include a sample of the coco pots, all raw materials, and the method of manufacture. When this information is available, you may wish to consider resubmission of your request.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/.
In your letter, you also requested the eligibility of any trade programs or agreements. The coco peat and the coco mats, classified in subheadings 1404.90.9090 and 5603.94.9090, respectively, are subject to an unconditional free rate of duty. There are no special tariff treatments that pertain to these two subheadings.
The marking statute, 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.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
Section 134.1(b), Customs Regulations, defines "country of origin" as the country of manufacture, production, or growth. In order to change the country of origin, further work or material added to the article in another country must effect a substantial transformation.
A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983).
Based on the information provided, the country of origin of the coco peat is Sri Lanka provided that the coir pith (coir dust) is obtained from Sri Lanka-origin coconut, and the entire manufacture of the coco peat occurs in Sri Lanka.
When the coco peat is imported loose in bags, the bags should be marked “product of Sri Lanka” or words of similar to indicate the country of origin of the coco peat. When imported in compressed block form, the coco peat blocks should be marked to indicate the country of origin.
In order to obtain a ruling on the country of origin, and the country of origin marking of the imported coco mats, a new ruling request should be filed with Customs.
The importation of this merchandise may be subject to regulations or restrictions administered by the U.S. Department of Agriculture, Animal and Plant Health Division (APHIS) and/or the U.S. Food and Drug Administration. It is suggested you contact these agencies directly for further information.
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at (301) 575-0156, or at the website www.fda.gov/oc/bioterrorism/bioact.html.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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 coco peat, contact National Import Specialist Bruce N. Hadley, Jr. at (646) 733-3029, or the coco mats, contact National Import Specialist Deborah Walsh at (646) 733-3044.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division