CLA-2-70:OT:RR:NC:N1:126
Hardy Steinmann
Hydrovaze LLC
30662 Via Estoril
Laguna Niguel, CA 92677
RE: The tariff classification and country of origin of a glass water bottle with aluminum shell
Dear Mr. Steinmann:
In your letter dated January 4, 2023, you requested a tariff classification and country of origin determination ruling. A sample was submitted with your ruling request and was sent to our Customs and Border Protection (CBP) laboratory for analysis. The same sample was previously sent on Ruling N306041 which was closed and has now been resubmitted. Our laboratory has completed its analysis.
The merchandise consists of a storage-type cylindrical 16-ounce clear borosilicate glass bottle, topped with a removable thermoplastic cap and snap-in silicone spout, and encased in an anodized aluminum shell. The measurements of the glass bottle are approximately 10.06 inches in height and 2.9 inches in diameter at its widest point. The glass bottle is manufactured and molded in Germany. The thermoplastic cap (resin from Switzerland), silicone cap parts and base (silicone from China), stainless-steel push-button lock (stainless-steel from China), and aluminum shell (aluminum from China) are molded and manufactured in China. From the information provided, the glass bottle is for individual use and is used primarily to contain beverages, e.g., water, soda, etc., that are consumed. The unit value of the glass water bottle is over $5 dollars each.
CBP laboratory analysis determined that the glass water bottle has a linear coefficient of expansion which does not exceed 5 x 10-6 per Kelvin within a temperature range of 0°C to 300°C, but that it is not pressed and toughened (specially tempered).
The glass water bottle is a composite good within the meaning of General Rule of Interpretation 3. The essential character of the item is that which is indispensable to the functioning of the item. In this instance, the glass water bottle performs the critical role of holding the water. The glass water bottle continuously stores the water and provides a means through the drinking spout in the lid, to consume the water. It is the opinion of this office that the glass water bottle provides the essential character within the meaning of GRI 3(b).
The applicable subheading for the glass water bottle with aluminum shell is classified under 7013.42.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes…: Glassware of a kind used for table (other than drinking glasses) or kitchen purposes other than that of glass-ceramics:.. Of glass having a linear coefficient of expansion not exceeding 5 x 10-6 per Kelvin within a temperature range of 0ËšC to 300ËšC: Other: Valued over $5 each.” The general rate of duty will be 7.2 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 at https://hts.usitc.gov/current.
You have also asked for a country of origin ruling. 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 courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff'd, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff'd, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
With regards to the glass water bottle, you state that the glass bottle is sourced and made entirely in Germany. The glass bottle component is shipped to China where it is assembled with a thermoplastic cap/spout (sourced from Switzerland), silicone cap and base (sourced from China), stainless-steel push-button lock (sourced from China), and an aluminum shell (sourced from China). The glass bottle provides the bulk and weight of the article and performs the primary function of the article, which is to store and hold water, beverages, etc., that its users can directly consume. Based on the provided description of the finishing operations performed in China, the glass water bottle does not undergo a substantial transformation resulting in an item with a new name, character, or use. Additionally, the glass bottle remains classified in 7013.42.4000, HTSUS, both before and after the addition of the plastic cap/spout, silicone cap and base, stainless-steel push-button lock, and aluminum shell. Therefore, it is the opinion of this office that the country of origin of the glass bottle with aluminum shell, is Germany.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Elena Pietron at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division