CLA-2-39:OT:RR:NC:N:5:137
Theodor Swart
Lumi Importing Ltd
4110 Tench Rd STE F Suwanee, GA GA-30024
RE: The tariff classification and country of origin of a vinyl roller shade
Dear Mr. Swart:
In your letter dated August 28, 2024, you requested a tariff classification and country of origin determination ruling.
The product under consideration is referred to as a tear-to-fit vinyl roller shade. It consists of a polyvinyl chloride (PVC) shade on a telescopic steel tube. It is designed for installation with steel brackets inside or outside a window frame and will be imported with mounting hardware. The shade also features a cordless spring mechanism inside the telescopic tube and is operated by raising and lowering the bottom hem slat. The product incorporates a perforated line pattern that allows the width to be altered at home by tearing the vinyl along the perforation. The width of the telescopic tube can also be adjusted. The shade measures 37.25 inches wide by 72 inches long. The shade will be sold in retail establishments.
The applicable subheading for the vinyl roller shade will be 3925.30.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for builders' ware of plastics, not elsewhere specified or included: shutters, blinds (including venetian blinds) and similar articles and parts thereof: blinds (including venetian blinds). The general rate of duty will be 3.3 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/.
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, dated January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
In Taiwan, Taiwanese origin PVC granules are melted and extruded into the vinyl film with a width of 36 inches. The film is also embossed and perforated during the same process. The film will be sent in rolls of 300 meters from Taiwan to Vietnam. The country of origin of the vinyl film is Taiwan, for tariff purposes.
Taiwanese origin PVC pellets are shipped to Vietnam where they are melted and extruded into the PVC slats and PVC Round tubes. The PVC slats and PVC Round tubes are cut to length for incorporation into the vinyl roller shade. The processing operations in Vietnam, substantially change the PVC pellets. Therefore, Vietnam is the country of origin for the PVC slats and PVC round tubes, for tariff purposes.
Rolls, of Chinese origin steel plate, are shipped to Vietnam. In Vietnam the steel plate is stamped into steel brackets and steel end caps. The processing operations performed in Vietnam substantially change the steel plate. Therefore, Vietnam is the country of origin for the steel brackets and steel end parts.
Two sizes of Chinese origin steel tubes are shipped to Vietnam. The small tube has a diameter of 0.95 and a length of 20.08. The large tube has a diameter of 0.99 and a length of 21.06. The tubes are not cut or otherwise altered in Vietnam. Therefore, China is the country of origin for the steel tubes.
The spring mechanism is manufactured in Vietnam. Chinese origin steel wire is coiled into a spring on an automated coiling machine in Vietnam. The spring coil is attached to the PVC round tube and workers then wind the spring coil, so it is tensioned. The processing operations performed in Vietnam substantially change the steel wire. Therefore, Vietnam is the country of origin of the springs, for tariff purposes.
Final assembly in Vietnam:
The smaller diameter rod is inserted into the larger diameter rod, forming a telescopic rod. Two plastic caps are installed onto the small diameter tube to fill the diameter gap for vinyl film attachment. A plastic end cap is also installed on the small diameter tube. The spring mechanism is then inserted into the large diameter tube. After assembly of the telescopic tube, double sided tape is attached to the tubes.
The vinyl film is attached to the telescopic steel tube. It is then rolled onto a telescopic steel tube and cut to the correct length using an automated machine. A hem is sealed on the bottom of the vinyl film via high frequency melt bonding, creating a pocket for the PVC slat. The PVC slat is inserted. A plastic C-ring is attached to the plastic end cap to prevent the steel tube from moving.
The assembled vinyl roller shade is placed inside a polyethylene bag with the steel brackets.
It is the opinion of this office that the totality of operations performed in Vietnam result in a substantial transformation of the components into a finished vinyl roller shade. Therefore, the country of origin of the vinyl roller shade is Vietnam, for tariff purposes.
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 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 Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division