CLA-2-70:OT:RR:NC:N1:126
David Arndt
Universal Packaging Incorporated
1810 Kosmina Road
Vernon, Canada V1T 8T2
RE: The tariff classification of glass wine and spirit bottles from China.
Dear Mr. Arndt:
In your letter dated October 16, 2018, you requested a tariff classification ruling. A sample was submitted with your ruling request and will be returned to you.
The merchandise under consideration is a clear flint frosted glass bottle with the words screen printed on the front “Dry Fly Washington Vodka”, and a green colored glass wine bottle with the words screen printed on the front “Silver Oak”, and “Napa Valley” printed on the top and the type of wine printed on the bottom. From the information provided, the bottles are made of soda-lime glass and manufactured by automatic machine. The “Dry Fly Washington Vodka” bottle measures approximately 8 ¾ inches high by 3 ¾ inches in diameter at its base, tapering to an opening 1 ¾ inches (34.5 millimeters) in outer diameter. The capacity of the bottle is .75 liters. The “Silver Oak, with Napa Valley” printed on the bottle measures approximately 11 ¾ inches high by 3 inches in diameter at its base, tapering to an opening 1 inch (26.97 millimeters) in outer diameter. The capacity of the bottle is .75 liters. The bottles are sold to distributors for the commercial packing of wine and spirits.
It was stated in the information, the applied ceramic labeling (ACL) process involves screen printing ceramic paint onto the glass bottles, which is permanently annealed to the bottles through a high temperature firing process.
In your letter you also requested a ruling on the country of origin of the glass “Dry Fly Vodka” bottle and the glass “Silver Oak” wine bottle.
Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means 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 Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908).
With regards to the glass bottles, you state that the bottles are manufactured in China, but that the applied ceramic labeling (ACL) process involves screen printing ceramic paint onto the glass bottles that is performed in Canada. 19 CFR §102.20(l) requires a change to heading 7010 from any other heading. We find that the processing performed in Canada does not substantially transform the glass bottles into a new and different article. Therefore, we consider the glass bottles to be a product of China. Because the glass bottles would be classified in 7010, HTSUS, this rule has not been met. Therefore, the country of origin of the glass bottles remain the country in which the glass bottles were manufactured, i.e., China, as applicable.
Additionally, "Advanced in value" is defined in section 102.1(a) as "an increase in the value of a good as a result of production with respect to that good, other than by means of those 'minor processing' operations described in paragraphs (m)(5), (m)(6) and (m)(7) of this section". "Improved in Condition" is defined in section 102.1(i) as "the enhancement of the physical condition of a good as a result of production with respect to that good, other than by means of those 'minor processing' operations described in paragraphs (m)(5), (m)(6) and (m)(7) of this section". The minor processing operations described in paragraphs (m)(5), (m)(6) and (m)(7) of section 102.1, include unloading, reloading or any other operation necessary to maintain the good in good condition; putting up in measured doses, packing, repacking, packaging, repackaging; and testing, marking, sorting or grading.
In this case, we find that the Chinese origin glass bottles are not advanced in value or improved in condition as a result of the labeling operation performed in Canada. The labeling operation is considered to be the equivalent of "marking", one of the minor processing operations identified as excluded from the definition of "advanced in value" or "improved in condition". Accordingly, section 102.14 is not applicable, and pursuant to section 102.11(b)(1), the country of origin of the labeled glass bottles imported into the U.S., is China for purposes of the country of origin marking requirements of 19 U.S.C. 1304.
The applicable subheading for the “Dry Fly Washington Vodka” glass bottle and the “Silver Oak” glass wine bottle will be 7019.90.5019, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Carboys, bottles, flasks, jars, pots, vials, ampoules and other containers, of glass, of a kind used for the conveyance and packing of goods…: Other: Other containers (with or without their closures): Of a capacity exceeding .473 liter but not exceeding 1 liter: Other.” The general rate of duty will be Free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 7010.90.5019, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 7010.90.5019, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 the ruling, contact National Import Specialist Elena Pietron at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division