CLA-2-46:OT:RR:NC:4:434
Ms. Michelle Klein
Fourstar Group USA, Inc.
925 Grant Street
Akron, OH 44311
RE: The tariff classification and country of origin of Gift Bows from Cambodia
Dear Ms. Klein:
In your letter, dated September 7, 2018, you requested a tariff classification and country of origin ruling. Manufacturing information was supplied as part of the submission. Prototype samples of two styles of gift bows were provided for our review and will be retained.
Item V23000466, “1 Count Curly Bow Bright Dots,” is a gift bow constructed of spiral curls of plastic ribbon (80% polypropylene (PP), 20% polyethylene (PE)) stapled in the center and radiating out in all directions. The ribbon measures greater than 5 mm in width. In its imported condition, the bow will have an adhesive backing for attaching to a gift. The bow is mounted to a hanging backer card for retail sale.
Item V23000467, “1 Count Neon Gift Bow Fountain,” consists of a decorative gift bow on a retail backer card. The bow is constructed of two widths of PE plastic ribbon: approximately 1 mm wide, and approximately 6.1 mm wide. The ribbons are looped, the loops spraying out like a fountain from a central plastic holder at the base. Each bow measures approximately 6 inches in diameter. In its imported condition the bow will have an adhesive backing for attaching to a gift.
In regards to classification, Note 1 to Chapter 46, Harmonized Tariff Schedule of the United States (HTSUS) defines the term “plaiting materials” as follows:
“…materials in a state or form suitable for plaiting, interlacing or similar processes; it includes straw, osier or willow, bamboos, rattans, rushes, reeds, strips of wood, strips of other vegetable material (for example, strips of bark, narrow leaves and raffia or other strips obtained from broad leaves), unspun natural textile fibers, monofilament and strip and the like of plastics and strips of paper, but not strips of leather or composition leather or of felt or nonwovens, human hair, horsehair, textile rovings or yarns, or monofilament and strip and the like of chapter 54.”
The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level. The ENs to Chapter 46 further define plaiting materials in General Note (3) to include:
“Monofilament and strip and the like of plastics of Chapter 39 (but not monofilament of which no cross sectional dimension exceeds 1 mm nor strip or the like of an apparent width not exceeding 5 mm, of man made textile materials, of Chapter 54).”
The plastic strips forming the curly gift bows, style V23000466, constitute plaiting materials, since they meet the Chapter 46 definition, which includes strips of plastic, and measure over 5 mm in width.
Therefore, the applicable subheading for style V23000466 will be 4602.90.0000, HTSUS, which provides for Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601: Other. The duty rate will be 3.5 percent ad valorem.
The neon gift bow fountain, style V23000467, is formed from both plastic strips measuring over 5 mm in width (that constitute articles of plaiting materials) and plastic strips measuring less than 5 mm in width (that constitute a textile). The bows are therefore considered a composite article for tariff purposes, as defined by General Rule of Interpretation (GRI) 3, HTSUS. Neither the plaiting material strips nor the textile strips provide the predominate visual impact, nor in other ways impart the essential character. When the essential character of the overall product cannot clearly be ascribed to a single material, GRI 3(c) directs that the classification will be the heading that appears last in numerical order among those that equally merit consideration. The competing headings here are 4602, HTSUS, (articles of plaiting material) and heading 5609, HTSUS, (textile strip of an apparent width not exceeding 5 mm). Heading 5609, HTSUS, appears last in the tariff.
The applicable subheading for the neon gift bow fountain, style V23000467, will be 5609.00.4000, HTSUS, which provides for Articles of strip or the like of heading 5404, not elsewhere specified or included; Other. The rate of duty will be 3.9 percent ad valorem.
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 https://hts.usitc.gov/current.
You also requested a country of origin determination. Per your submission, rolls of PP and PE plastic sheeting, measuring 50 cm wide and 1000 meters in length are manufactured in China. These rolls are shipped to Cambodia where they are slit into ribbons. Still in Cambodia, the ribbons are then curled or looped and machine-made into the various configurations of the finished bows and packaged for retail. Photos of these processes were provided.
Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. 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 this part. A substantial transformation occurs when articles lose their identity and become articles having a new name, character or use.
In the instant case we find that the bulk rolls of plastic sheeting do undergo a substantial transformation in Cambodia to become the finished bows, taking on a new name, character and identity. The country of origin for the bows will be Cambodia.
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 ruling, contact National Import Specialist Charlene Miller at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division