CLA-2-39:OT:RR:NC:N4:434
Ana Gomez
Veyer, LLC
6600 North Military Trail
Boca Raton, FL 33496
RE: The tariff classification and country of origin of tape dispensers and tape
Dear Ms. Gomez:
This ruling is being issued in response to your letter dated April 15, 2024, requesting a tariff classification and country of origin determination for a refillable tape dispenser and rolls of tape. Pictures, product descriptions, and manufacturing details were provided for our review in lieu of samples.
Item number 520496 is a refillable desktop tape dispenser and eight rolls of clear adhesive tape sized to fit the dispenser. The dispenser is made of rigid molded plastic. Per your description, the dispenser and tape rolls will be packaged together for retail sale.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If the goods cannot be classified solely based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and coding System, which constitutes the official interpretation of the Harmonized System at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading and are generally indicative of the proper interpretation of the HTSUS. The ENs to GRI 3(b) state at Note X that the term goods put up in sets for retail sale means goods that: (a) consist of at least two different articles that are, prima facie, classifiable in different headings; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to end users without repackaging.
Since the subject articles are 1) a refillable tape dispenser classified in one heading of the HTSUS (3926) and rolls of adhesive tape classified in another heading (3919), 2) used together to meet a specific need and 3), sold together at retail without repackaging, this office finds that the subject articles meet the terms of EN X to Rule 3(b), HTSUS, (goods put up in sets for retail sale) and shall therefore be classified as if they consisted of the single material or component that imparts their essential character.
The ENs to the HTSUS, GRI 3(b) (VIII), state that the factor which determines essential character will vary between different kinds of goods. It may, for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods. When the essential character of a composite good or set can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good.
With respect to the dispenser and tape rolls comprising the set under consideration, and taking into account their roles with respect to the use of the set, this office finds that the dispenser imparts the essential character to the set. The dispenser is sturdy and refillable and therefore can be refilled an indefinite number of times beyond its use with the provided tape rolls.
The applicable subheading for the dispenser and tape set will be 3926.10.0000, HTSUS, which provides for Office or school supplies, of plastic. The rate of duty will be 5.3 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 request a country of origin determination for the purposes of marking and duty. In your letter, you describe a scenario wherein the dispenser parts are made in China and then sent to Vietnam for assembly. For the tape, rolls of polypropylene plastic are manufactured in China and then sent to Vietnam for further processing. The specific manufacturing processes are described here:
Dispensers:
The plastic components of the dispenser body are molded in China. The plastic wheel and metal cutting edge are also made in China. These components are sent to Vietnam where Vietnam-origin dry cement and sand are added to weight the base of the dispenser. The upper and lower halves of the dispenser are glued together, and the metal cutting blade is slid into place.
Tape:
The polypropylene sheet is manufactured in China. It is shipped to Vietnam in rolls with dimensions of 0.96 m x 4000 m. Butyl Ester is imported from Malaysia. The rest of the chemical components are sourced in Vietnam. In Vietnam, the chemicals undergo a multi-phase manufacturing process, to include emulsification, reaction, cooling and post-treatment to form the adhesive. The polypropylene rolls are loaded into the glue coating machine. The adhesive is pumped from the tank, into the glue coating machine, and coated onto one side of the polypropylene sheet. The jumbo rolls of coated polypropylene are then cut-to-size into finished rolls measuring 1.9 cm x 25.4 m.
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.
The "country of origin" is defined in 19 CFR 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."
The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). If the manufacturing process is a minor one, which leaves the identity of the imported article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff'd per curiam, 702 F.2d 1022 (Fed. Cir. 1983).
The simple assembly process involved with assembling the China-made plastic tape dispenser parts in Vietnam would not be considered a substantial transformation. The country of origin for the dispensers will be China.
The transformation of jumbo rolls of polypropylene into rolls of adhesive polypropylene tape in Vietnam would be considered a substantial transformation. Therefore, the country of origin of the rolls of tape will be Vietnam.
For marking purposes, both the country of origin of the dispenser and the country of origin of the tape rolls must be accounted for. Therefore, the exterior retail packaging must be marked to indicate the countries of origin for both products, for example, Dispenser made in China; Tape made in Vietnam.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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