CLA-2-94:OT:RR:NC:N4:433
George R. Tuttle, III
Tuttle law
1100 Larkspur Landing Circle, Suite 385
Larkspur, CA 94939
RE: The country of origin of a mattress base.
Dear Mr. Tuttle:
In your letter dated November 13, 2019, you requested a ruling on behalf of your client, Ergomotion Incorporated, seeking confirmation that the article below is country of origin Mexico, and not subject to section 301 duties. Illustrative literature, product description and a manufacturing process were provided for review.
The item subject of this ruling request is constructed of foreign and domestically sourced raw materials. A description of the item immediately follows:
You state the “Motion Essential IV,” Mechanically Adjustable Bed Foundation, “incorporates the characteristics of a bed foundation and sits directly on the ground via legs and is the platform for a mattress which sits atop the foundation. The adjustable bed base replaces traditional box springs and provides multiple mattress positions via its articulating electromechanical structure as the user gives input to the adjustable bed base via AC-powered electronics and a wired or wireless hand remote control. The adjustable bed foundation may or may not have other other electrical accessories, such as massage (vibrator) motors, USB ports, under-bed LED lighting. The adjustable bed base replaces a standard box spring and provides multiple mattress positions.”
Per submission, manufacturing materials include: the wood deck back plate, wood deck foot board, wood deck thigh plate, wood deck seat plate, assembly hardware, power supply, non-woven fabric and additional component materials are sourced from China. The components are shipped and exported to Mexico. In Mexico, production materials include: wood strips, foam, assembly hardware, packing materials and additional component materials are locally sourced. In Mexico, the nearly 300 individual components and materials are assembled by general assemblers, production engineers, and quality assurance workers to product design specifications as follows:
Step one (1), the wooden deck sub-assembly will create the primary element of supporting the mattress. The wooden deck is comprised of four individual China-sourced (back, foot, thigh, seat) plates and built by aligning them on a jig table. The plates will be fastened to one another using steel powder-coated hinges assemblies, zinc plated hexagon screws, and pronged T-nuts.
Step two (2), Mexican origin foam will be cut to create side rails. Workers will firmly apply hot melt adhesive between the assembled wooden deck edges and foam side rails. The foam rails protects against sharp edges, provides an aesthetic shape and attachment point for an upholstered furniture appearance.
Step three (3), the wooden deck will be turned over so the “top” is facing up. Workers will use a spray machine and apply Mexican sourced glue around the massage motor hole and evenly across the entire exposed surface of the wooden deck assembly. High-density Mexican sourced foam will then be installed onto the wooded deck assembly. The foam and wooden deck assembly are then folded at each hinged panel for adhesion and curing of the glue.
Step four (4), workers will apply glue across the entire top surface of the high-density foam. Cut and sewn fabric of Chinese origin is then upholstered to the foam and wooden deck assembly.
Step Five (5), the upholstered wood deck assembly is turned over so that the “bottom” is facing up. Black non-woven fabric of Chinese origin is then air nailed and aligned with the corners to keep creases and folds out.
Step Six (6), Chinese sourced massage (vibration) motor, control units, black powder-coated steel foot struts, USB power ports, steel plates, assembly hardware, and rubber wire management conduits are installed to the wooden deck assembly.
Step Seven (7), Chinese sourced steel weldments are attached to the wooden frame at different pivot points.
Step Eight (8), wire management plastic connectors, power input cables, head and foot linear actuator motors, motor pins, motor pin locks, and clip motor cables of Chinese origin are installed in designated locations so that during the operation the electrical system is not crushed. A power supply and remote control of Chinese origin are then used to test the electrical functionality of the mechanically adjustable bed foundation prior to packing and export. Photos of these processes were provided.
COUNTRY OF ORIGIN
Pursuant to 19 Code of Federal Regulations (C.F.R.) § 134.1(b), “country of origin” means the country of manufacture, production, or growth of any article of foreign origin entering the United States. However, for a good of a NAFTA country (Mexico, Canada), in this case, manufactured in part in Mexico, the NAFTA Marking Rules (set forth in 19 C.F.R. § 102) will determine the country of origin of a good for marking purposes.
The country of origin of the mechanically adjustable bed foundation for marking purposes will be determined in accordance with the hierarchical rules set forth in 19 C.F.R. § 102.11 (goods other than textile and apparel products covered by Section 102.21). Section 102.11(a) provides that the country of origin of a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other requirements of these rules are satisfied.
As the subject merchandise is not wholly obtained or produced in a single country, Rule (1) of Section 102.11(a)(1) is inapplicable.
As the subject merchandise is not produced exclusively from domestic materials, Rule (2) of Section 102.11(a)(2) is inapplicable. Accordingly, Rule (3) applies.
Section 102.20 sets forth specific rules by tariff classification. The pertinent tariff shift rule for subheading 9403.20, states:
A change to subheading 9403.10 through 9403.89 from any other subheading outside that group, except from subheading 9401.10 through 9403.89, and except from subheading 9401.90 or 9403.90, when that change is pursuant to General Rule of Interpretation 2(a).
As the foreign Chinese origin material components once assembled with the domestic Mexican origin material components undergo a change in tariff classification as specified in 102.11(a)(3), the mechanically adjustable bed foundation in question will qualify to be marked as a good of Mexico.
SECTION 301 APPLICABILITY
Production of Ergomotion’s adjustable bed foundation requires manufacturing of the products
platform bases, wooden deck assembly, cutting to size both foam and fabric to the wooden deck, and then construction of the metal adjustable frame. The remainder of manufacturing is mating all other support systems and structure to the deck through a combination of wood, glue, fabrics, steel weldments, fasteners, electronic motors, and a control system so that the sum of the parts transform into a piece of electro-mechanical motion furniture. The major assemblies and their components are manufactured to an extent that none of the individual components alone can perform the mattress adjustability function.
In the instant case, the foreign Chinese origin material components and the domestic Mexican origin material components lose their identity during manufacture in Mexico and undergo a substantial transformation, thereby, taking on a new name, character, and identity. In view of these facts, the country of origin for the mechanically adjustable bed foundation is conferred in Mexico.
As a “product of Mexico,” the mechanically adjustable bed foundation is not subject to China Section 301 trade remedy duties.
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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division