CLA-2-94:OT:RR:NC:N4:463
Robert D. Stang
Husch Blackwell LLP
1801 Pennsylvania Ave., NW
Washington, DC 20006
RE: The country of origin of three mattresses incorporated into a sleeper ottoman or sofa bed
Dear Mr. Stang:
This ruling is being issued in response to your letter dated March 26, 2024, requesting a country of origin determination on behalf of your client, Synergy Home Furnishings, for three memory foam mattresses. In addition to determining their country of origin, we are also providing their classification, and the classification and Section 301 applicability of the sleeper ottoman and sofa bed in which they will be incorporated. In lieu of samples, pictures and product descriptions were provided.
Item 1 is identified as the One Step 4.75" Foam Mattress. It comes in three sizes: Queen (item #SQ), Full (item # SF) and Twin (Item # ST). The three mattresses measure 76" (L) x 4.75" (H) and their widths are 60" (Queen), 52" (Full), and 36" (Twin). The outer cover is made of 300 gsm 64% polyester/36% rayon knit fabric. It has a non-slip fabric zipper.
Item 2 is identified as the Standard Mech Sleeper 4.5" Foam Mattress. It comes in three sizes: Queen (item #VQ), Full (item # VF), and Twin (item # VT). The three mattresses measure 76" (L) x 4.5" (H) and their widths are 60" (Queen), 52" (Full), and 36" (Twin). The outer cover is made of 270 gsm 100% polyester knit fabric. It has a non-slip fabric zipper.
Item 3 is identified as the VO 3" Foam Mattress (item # VO) and measures 73" (L) x 3.0" (H) x 36" (W) (Twin). The outer cover is made of 260 gsm 100% polyester knit fabric. It has a non-slip fabric zipper.
The literature states that the following operations are performed in Japan: 100% polyurethane memory foam is extruded, layered, cut to size, sewn into a fireproof sock and zipped into an outer cover to produce a finished mattress. See images below:
| |Standard Mech Sleeper 4.5" Foam Mattress |VO 3" Foam Mattress |
|One Step 4.75" Foam Mattress | | |
| | | |
The finished mattress is wrapped in plastic, compressed by rolling, and shipped to China.
In China, the mattress is allowed to unroll and decompress, and then placed on a metal frame inside a Chinese-origin sofa bed or a Chinese-origin sleeper ottoman. No other operations are performed on the mattress, and it is not attached or otherwise secured.
The finished sleeper ottoman or sofa bed with the incorporated mattress is packed for export and shipped to the United States.
CLASSIFICATION
By application of General Rule of Interpretation (GRI) 1, and consistent with NY N307432, item 1, the One Step 4.75" Foam Mattress, and item 2, the Standard Mech Sleeper 4.5" Foam Mattress, will be classified in subheading 9404.21.0013, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: "Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: Mattresses: Of cellular rubber or plastics, whether or not covered, Of a width exceeding 91 cm, of a length exceeding 184 cm, and a depth exceeding 8 cm." The ad valorem rate of duty is 3%.
By application of General Rule of Interpretation (GRI) 1, and consistent with NY N307432, item 3, the VO 3" Foam Mattress, will be classified in subheading 9404.21.0095, HTSUS, which provides for: "Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: Mattresses: Of cellular rubber or plastics, whether or not covered, Other." The ad valorem rate of duty is 3%.
The applicable subheading for the sleeper ottoman and the sleeper sofa was classified in NYRL N315271, Nov. 12, 2020, under subheading 9401.40.0000, HTSUS, which provides for "Seats (other than those of heading 9402), whether or not convertible into beds and parts thereof: Seats other than garden seats or camping equipment, convertible into beds." In the 2023 HTSUS, that same article is classified under subheading 9401.49.0000, HTSUS, which provides for "Seats (other than those of heading 9402), whether or not convertible into beds and parts thereof: Seats other than garden seats or camping equipment, convertible into beds: Other." The rate of duty will be free.
COUNTRY OF ORIGIN AND MARKING
Country of origin under 19 USC 1304 is implemented by 19 CFR Part 134. Unless excepted by law, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article.
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. No one factor is decisive.
Per the information provided, the Japanese-origin mattresses, subject of this ruling, are incorporated into Chinese-origin sleeper ottomans and Chinese-origin sleeper sofas in China. No operations other than the mere placement of the mattresses on the sleeper frame are performed in China. As such, although subsumed into the Chinese-origin sleeper ottomans and Chinese-origin sleeper sofas, the Japanese-origin mattresses have not lost their own identity. They have not undergone a substantial transformation, they have not taken on a new name, character or use, and they retain their identity as mattresses and, therefore, they maintain their Japanese country of origin. (See NYRL N315271, NYRL N322850, and HQRL H318891.)
In view of these facts, the country of origin of the sleeper ottoman and the sleeper sofa is China. The country of origin for items 1, 2 and 3 (One Step 4.75" Foam Mattress, Standard Mech Sleeper 4.5" Foam Mattress and VO 3" Foam Mattress) is Japan.
SECTION 301 TRADE REMEDY
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9401.49.0000 HTSUS, unless specifically excluded, are subject to an additional 25 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 9401.49.0000, HTSUS, listed above.
In order to properly report the applicable Section 301 duties, filers are required to break out the value of the Chinese-origin sleeper ottomans and sleeper sofas on one line and the value of the Japanese-origin mattresses on another. This will enable the reporting of the correct country of origin and Section 301 duties.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 internet at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. If the facts are modified in any way, or if the goods do not conform to these facts at the time of importation, you should bring this to the attention of CBP and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division