CLA-2-73:OT:RR:NC:N1:121
Sandra Tovar, LCHB
CST, Inc.
500 Lanier Ave., W. Suite 901
Fayetteville, GA 30214
RE: The tariff classification and country of origin of metal screws and plastic anchors packaged together as a set
Dear Ms. Tovar:
In your letter dated January 7, 2020 you requested a tariff classification ruling on behalf of Pan American Screw. This office has examined the sample and documentation you submitted.
The item under consideration is described as style “Fiberon”, and consists of a plastic clip (also called an anchor), and a coated steel self-tapping screw that is pre-inserted into the clip. It is used to secure deck flooring. The plastic clip has a rectangular base that is approximately 26.6 mm long, 18.7 mm wide and 4.3 mm thick. Perpendicularly below the base is a smaller rectangular “fin” that measures approximately 19.9 mm long, 9 mm wide and 5.05 mm thick. The screw is a partially threaded tapping screw that is approximately 41.7 mm long and 3.9 mm in diameter. According to your documentation, the screw is made of stainless steel or carbon steel with a powder coated flat black head. The long edges of the base plastic clip insert into the grooves on the edge of deck boards to secure the boards side by side and help control lateral movement. The fin of the clip ensures an equal distance between boards. The screw secures the clip, and thus the boards, to the foundation of the deck. You state the items will be imported in a cardboard box or in larger bucket sizes for retail sale along with 1 drill bit to assist with installation.
The Fiberon is composed of different components (a steel screw and a plastic clip) and is considered a composite good. The Explanatory Notes to the Harmonized Tariff Schedule of the United States (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 can be determined, the whole product is classified as if it consists only of the material or component that imparts the essential character to the composite good. If no essential character for the composite good can be determined, then Rule 3 (c) provides that classification will be determined by the heading that occurs last in numerical order among those headings that equally merit consideration. In this case, we find that neither the steel screw nor the plastic clip imparts the essential character to this article. As such, the Fiberon is classified by application of GRI 3(c) according to its metal component.
The applicable subheading for the Fiberon consisting of a stainless steel screw pre-inserted in a plastic clip will be 7318.14.1030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar items of iron or steel: threaded articles: self-tapping screws: having shanks or threads with a diameter of less than 6 mm: of stainless steel. The duty rate will be 6.2% ad valorem.
The applicable subheading for the Fiberon consisting of a carbon steel screw pre-inserted in a plastic clip will be 7318.14.1060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel: threaded articles: self-tapping screws: having shanks or threads with a diameter of less than 6 mm: other. The duty rate will be 6.2% 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 World Wide Web at https://hts.usitc.gov/current.
Your proposed production process involves using coiled steel wire of either Taiwanese or Chinese origin. The screws will be formed entirely in Taiwan, to include cutting the wire to size, forming the head, point, and thread, heat treating and coating. The screws will then by shipped to China. In China, a screw will be inserted through a plastic clip of Chinese origin and packaged together in equal quantities. A drive bit of Chinese origin is packaged with the screw and clip sets to assist in installation. The merchandise will be exported directly from China to the United States.
In 19 C.F.R. § 134.1(b), “country of origin” is defined 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.” In this instance, the “name, character and use” test must be applied in order to determine whether a substantial transformation has occurred. The court has said that “A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use that differs from the original material subjected to the process”. The court in National Hand Tool Corp. v. United States determined that imported forgings, in that case, were not substantially transformed as (1) the articles had been forged “into their final shape before importation” into the United States and (2) “the form of the components remained the same” after the processes performed in the United States. The court concluded that no substantial change in name, character or use had occurred as a result of the processing performed in the United States.
Based upon the facts presented and the pertinent authorities, it is the opinion of this office that the assembly process described above does not result in a substantial transformation. It has been determined that the completed Fiberon article is classified according to the screw component. The screws are manufactured in Taiwan and then exported to China. The simple assembly operation of inserting the completed screws into the Chinese clips does not result in a new and different article of commerce. Thus, the country of origin of the Fiberon is Taiwan.
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 Jennifer Jameson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division