CLA-2-94:OT:RR:NC:N4:433
Laura S. Rabinowitz, Esq.
Greenberg Traurig, LLP
One Vanderbilt Avenue, 30th Floor
New York, New York 10017
RE: Country of Origin; Section 301; Unassembled futons
Dear Ms. Rabinowitz:
In your letter dated November 17, 2021, you requested a binding country of origin ruling on behalf of Dorel Home Furnishings, Inc. In lieu of samples, illustrative literature, product descriptions, and manufacturing processes were provided.
“Futon Style A,” is a polyester-fiber filled mattress and an unassembled futon frame. The futon is a seat that converts into a bed. The seat foundation, backrest, armrests, and legs are constructed of metal; collectively they comprise the futon’s frame. The overall product dimensions approximate 77.5” in length, 31” in depth, 29.5” in height, and 65lbs. in weight. Futon Style A will be imported as a complete unit with all hardware included for assembly.
“Futon Style B,” is a polyester-fiber filled mattress and an unassembled futon frame. The futon is a seat that converts into a bed. The seat foundation and backrest are constructed of metal while the armrests and legs are constructed of wood; collectively they comprise the futon’s frame. The overall product dimensions approximate 80.5” in length, 35” in depth, 37” in height, and 72lbs. in weight. Futon Style B will be imported as a complete unit with all hardware included for assembly.
Sourcing Scenario:
The ruling request outlines 2 sourcing scenarios. “Futon Style A” involves a sourcing operation where (1) a futon mattress is manufactured in Canada, (2) a complete unassembled metal futon frame is manufactured in China, (3) the unassembled Chinese origin components are then shipped to Canada, (4) in Canada, the mattress and the unassembled metal futon frame are packaged into a retail carton for exportation to the United States. “Futon Style B” involves a sourcing operation where (1) a futon mattress is manufactured in Canada, (2) the metal futon seat foundation and the futon backrest components are manufactured in China, (3) the wooden futon armrests and legs are manufactured in Vietnam, (4) the unassembled Chinese and Vietnamese origin components are then shipped to Canada, (5) in Canada, the mattress and the unassembled metal and wood frame components are packaged into a retail carton for exportation to the U.S.
In both instances you state, “there is no additional assembly in Canada” and “All assembly must be performed by the individual consumer after purchase in the U.S.”
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.
At the time of U.S. entry, the Canadian origin mattress and the Chinese origin components of “Futon Style A” have a predetermined use. Additionally, at the time of U.S. entry, the Canadian origin mattress, the Chinese origin metal components and the Vietnamese origin wood components of “Futon Style B” have a predetermined use. In Canada, the domestic and foreign origin components do not undergo further assembly. In Canada, the unassembled futon components are packaged together for export to the U.S. Packaging into a retail carton does not result in a substantial transformation of the foreign origin Chinese components or of the foreign origin Vietnamese components. Also, packaging does not change the futons’ essential character. Further, there is no new name, character or use as the components retain their identities as futon mattresses and futon frames.
In view of the facts, for “Futon Style A,” the countries of origin of the unassembled futon for the purposes of marking and Section 301 remedies will be China (country of origin of the unassembled metal components) and Canada (country of origin of the mattress). For “Futon Style B,” the countries of origin of the unassembled futon for the purposes of marking and Section 301 remedies will be China (country of origin of the unassembled metal components), Vietnam (country of origin of the unassembled wood components) and Canada (country of origin of the mattress).
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).
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 19 C.F.R. § 177.9(b)(1). In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and you should resubmit for a new ruling in accordance with 19 C.F.R. § 177.2.
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