CLA-2-48:OT:RR:NC:4:434
Robert Leo
Meeks, Sheppard, Leo & Pillsbury LLP
570 Lexington Ave.
New York, NY 10022
RE: A country of origin and marking determination on various paper products
Dear Mr. Leo:
In your letter, dated May 10, 2024, you requested a country of origin and marking ruling on behalf of your client, TVS Hospitality Supply LLC, for bath tissue and kitchen paper products. A detailed description of the products and their manufacturing operations were submitted for our review.
The finished goods to be imported are:
The products will be sold to hotels and residential customers per your submission.
First, we must address tariff classification.
The applicable subheading for the toilet paper will be 4818.10.0000, HTSUS, which provides for Toilet paper. The rate of duty will be Free.
The applicable subheading for the facial tissues will be 4818.20.0040, HTSUS, which provides for Handkerchiefs, cleansing or facial tissues and towels: Other (of paper). The rate of duty will be Free.
The applicable subheading for the paper towels will be 4818.20.0020, HTSUS, which provides for Handkerchiefs, cleansing or facial tissues and towels: Towels (of paper). The rate of duty will be Free.
The applicable subheading for the paper napkins will be 4818.30.0000, HTSUS, which provides for Tablecloths and table napkins (of paper). The rate of duty will be Free.
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.
You also requested a country of origin determination for the purposes of marking. In your letter, you describe a scenario wherein parent rolls of paper made in Indonesia are sent to China, where they will be further manufactured into their final form as summarized here:
Toilet Tissue: The parent roll is milled utilizing virgin pulp from acacia and balsam/spruce fir
wood. The grammage is produced in 12.5-gram to 18-gram weights, the rolls have a 45.24
diameter and 3.0 core. The gram weight is directly related to the chosen ply to be produced
either 1-ply or 2-ply, or 3-ply and the specification thickness of individual item if the finished
article will have an embossed pattern.
A parent roll of tissue measuring 55.12 wide by 656.16' long will be exported from
Indonesia to China. In China, the roll simply will undergo slitting, which involves cutting
the parent roll lengthwise into narrower width strips and rewinding into smaller rolls on
cardboard tubes, the finished product being either one-ply or multiple two-ply or three-ply
rolls of tissue measuring 4 to 4.5 wide and 100' to 1,000' long.
Facial Tissue: The parent roll is milled utilizing virgin pulp from acacia and balsam/spruce fir
wood. The grammage is produced in 14-gram & 18-gram weights, the rolls have a 45.24
diameter and 3.0 core. The gram weight is directly related to the chosen ply to be produced
either 1-ply or 2-ply, and specification thickness of the finished articles.
A parent roll of tissue measuring 55.12 wide by 328.05 long will be exported from
Indonesia to China. In China, the facial tissue paper stock simply will be slit to reduce by
width, cut to length into sheets, and folded to create the finished 2 Ply, Facial Tissue,
packaged in a flat, paperboard box of 100 sheets of interfolded facial tissues.
Paper Towels: The parent roll is milled utilizing virgin pulp from acacia and balsam/spruce fir
wood. The grammage is produced in 16-gram & 34-gram weights, the rolls have a 45.24
diameter and 3.0 core. The gram weight is directly related to the chosen ply to be produced
either 1-ply or 2-ply, specification thickness of the individual item, and if the finished article will
have an embossed pattern.
A parent roll of tissue measuring 54.72 wide by 328.08' long will be exported from
Indonesia to China. In China, the roll will undergo simple embossing for raised dot
design, slitting, which involves cutting the parent roll lengthwise into narrower width
strips and rewinding into smaller rolls on cardboard tubes, the finished product being
multiple one-ply rolls of tissue measuring 7.87 to 11 wide and 100' to 1000' long.
Paper Napkins: The parent roll is milled utilizing virgin pulp from acacia and balsam/spruce fir
wood. The grammage is produced in 12.5-gram to 19-gram weights, the rolls have a 45.24
diameter and 3.0 core. The gram weight is directly related to the chosen ply to be produced,
specification thickness of the individual item, and if the finished article will have an embossed
pattern.
A parent roll of napkin stock measuring 29.52 wide by 328.08 long will be exported
from Indonesia to China. In China, the napkin paper stock simply will be raised dot
pattern embossed and slit to reduce by width, cut to length into sheets, and folded to
create the finished 2 Ply, Dinner Napkin, packaged in sleeves of 250 sheeted
interfolded napkins.
Section 304 of the Tariff Act of 1930 (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
Part 134, U.S. Customs and Border Protection (CBP) Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements of 19 U.S.C. 1304. Title 19, Section 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' within the meaning of this part; .
The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed. If the manufacturing process is a minor one, which leaves the identity of the imported article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff'd per curiam, 702 F.2d 1022 (Fed. Cir. 1983).
It can also be informative to research existing rulings. HQ W967997 (10/5/06) determined that tissue paper that was printed, cut to size, and folded had not undergone a substantial transformation. H306091 (2/2/20) ruled that a parent roll of paper that was transformed into sticky notes by cutting to size and applying adhesive had not undergone a substantial transformation. Further, New York ruling N333041 (6/13/23) ruled that Indonesia-origin parent rolls of paper converted in China did not undergo a substantial transformation in China.
You propose that the country of origin is Indonesia. We agree. The parent rolls of paper from Indonesia are not substantially transformed when embossed, cut to size, re-rolled or folded to form the finished paper products in China. When imported into the United States, the country of origin of these products for marking purposes will be Indonesia.
You further inquire about country of origin marking for your paper products. As stated previously, Section 304 of the Tariff Act of 1930 (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
You propose marking your paper products either Product of Indonesia, Made in Indonesia, or Product Originated in Indonesia. We agree that Product of Indonesia and Made in Indonesia would satisfy the requirement, assuming the wording were conspicuous, legible, indelible, and permanent. However, Product originated in Indonesia may cause confusion to the consumer and therefore is not an acceptable marking option.
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 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. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (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 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 Charlene Miller [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division