CLA-2-94:OT:RR:NC:N4:463
Robert D. Stang
Husch Blackwell LLP
750 17th Street, NW
Washington, DC 20006
RE: The country of origin of a mattress incorporated into a sleeper sofa bed and a sleeper ottoman
Dear Mr. Stang:
In your letter dated October 15, 2020, on behalf of your client, Synergy Home Furnishings, LLC, you requested a country of origin ruling on Taiwanese-origin foam mattresses incorporated into a Chinese-origin sleeper ottoman and a Chinese-origin sleeper sofa in China. You also sought confirmation that your recordkeeping system adequately substantiates that the mattresses in a given importation were of Taiwanese origin. Illustrative literature, including product descriptions and manufacturing processes, was provided for review.
The items are two foam mattresses:
Item 1, the sleeper ottoman mattress, measures 91.5 cm (width) x 185.5 cm (length) x 7.7 cm (depth).
Item 2, the sleeper sofa mattress, measures 132.08 cm (width) x 190.5 cm (length) x 11.43 cm (depth).
The literature presented states that both mattresses are made of 100% polyurethane memory foam that has been extruded, cut to size and sewn into a fireproof “sock” (i.e., an inner fabric cover of 65% rayon / 35% glass fiber) in Taiwan. The mattress and sock are then sewn into a 100% polyester outer covering in Taiwan. The sock and outer covering fabrics are manufactured and cut in China, whereupon the cut components are sent to the mattress manufacturer in Taiwan.
Images of finished bagged and finished unbagged mattresses are shown below:
By application of General Rule of Interpretation (GRI) 1 and consistent with NY N307432, the subject mattresses are of Taiwanese origin, and if imported in this condition, would be classified in subheading 9404.21.0095, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: Mattresses: Of cellular rubber or plastics, whether or not covered, Other.”
In China, the mattresses (in their plastic coverings) are placed on folding metal frames inside the sleeper ottoman or sleeper sofa. The complete sleeper ottoman or sleeper sofa is subsequently packed for shipment to the United States.
The applicable subheading for the sleeper ottoman and the sleeper sofa will be subheading 9401.40.0000, HTSUS, which provides for “Seats (other than those of heading 9402), whether or not convertible into beds and parts thereof: Seats other than garden seats or camping equipment, convertible into beds.” The rate of duty will be free.”
COUNTRY OF ORIGIN
Section 134.1(b), Customs Regulations (19 C.F.R. § 134.1(b)), defines “country of origin” 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.” A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use. No one factor is decisive.
Per the information provided, the Taiwanese mattresses subject of this ruling are incorporated into the Chinese-origin sleeper ottoman and Chinese-origin sleeper sofa in China. No operations, other than the mere placement of the mattresses on the sleeper frame, are performed in China. As such, although subsumed into the Chinese-origin sleeper ottoman and Chinese-origin sleeper sofa, the Taiwanese mattresses have not lost their own identity. They have not undergone a substantial transformation, they have not taken on a new name, character or use, and they retain their identity as mattresses and, therefore, they maintain their Taiwanese country of origin. See N301954.
In view of these facts, the country of origin of the sleeper ottoman and the sleeper sofa is China. The country of origin of the foam mattresses the subject of this ruling is Taiwan.
RECORDKEEPING SUFFICIENCY
You have requested confirmation that, upon importation of the sleeper ottoman and sleeper sofa into the United States, certain documents identified in your ruling request will be sufficient to substantiate that the incorporated mattresses are of Taiwanese origin.
This office is not in a position to pronounce whether a given recordkeeping system is sufficiently robust to adequately substantiate an article’s provenance. This office finds that the manufacturing operations performed on the subject mattresses in Taiwan, as presented herein, result in mattresses of Taiwanese origin and that said mattresses do not lose their identity when incorporated into sleeper ottomans and sleeper sofas in China.
Upon importation, a verification of the manufacturing operations performed on the subject merchandise is wholly within the purview of the import specialists.
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.
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 heading 9401, HTSUS, contact National Import Specialist Dharmendra Lilia at [email protected]. For questions regarding heading 9404, HTSUS, contact National Import Specialist Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division