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 an acrylic roller shade
Dear Mr. Swart:
In your letter dated September 13, 2024, you requested a tariff classification and country of origin determination ruling.
The product under consideration is referred to as a “blackout polyester fabric roller shade.” You note that the shade material consists of polyester fabric coated on both sides with acrylic. CBP Lab analysis confirmed that the product is a polyester fabric covered on both sides with cellular plastic material. The shade is on a convolute paper tube roll, reinforced with a steel insert. 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 convolute tube and is operated by raising and lowering the bottom hem slat. The shade has a thickness of 0.38 millimeters and measures 55 ¼ inches wide and 72 inches long. The shade will be sold in retail establishments.
In your ruling request, you suggested the shade is classified under subheading 6303.92.2030, HTSUS. We disagree. Heading 5903, HTSUS, covers textile fabrics, impregnated, coated, covered or laminated with plastics. Note 2(a)(5) to Chapter 59 states that Heading 5903 applies to:
(a) Textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square meter and whatever the nature of the plastic material (compact or cellular), other than:
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(5) Plates, sheets or strip of cellular plastics, combined with textile fabric, where the textile fabric is present merely for reinforcing purposes (chapter 39);
In this case, the shade is made of a plain woven, uniformly dyed, textile fabric coated with cellular plastic and the fabric is considered to be present merely for reinforcing purposes. Therefore, this material is excluded from classification under heading 5903 by virtue of Note 2(a)(5) and is classified under heading 3921, HTSUS. As the fabric is found to be of plastic rather than textile, the shade is excluded from Chapter 63, per Section XI, Note 1(h) and Chapter 63, Note 1.
The applicable subheading for the acrylic 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, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
In China, Chinese origin polyester yarn is woven into base fabrics and dyed in batches. The base fabrics are then coated on both sides with acrylic coating. The acrylic coated polyester will be sent in rolls of 80 meters from China to Vietnam. The country of origin of the acrylic sheet is China, for tariff purposes.
Chinese origin cardboard paper is shipped to Vietnam. In Vietnam, the cardboard paper is fed to an automated paper rolling machine to be glued together using liquid adhesives. The convolute paper tubes are tied in batches and baked, in a large oven, for 8 hours at 50 degrees Celsius. Following baking, the tubes are subjected to a 3-week drying period, after which the convolute tubes can be used to produce roller shades. The processing operations in Vietnam substantially changes the cardboard paper. Therefore, Vietnam is the country of origin of the convolute paper tubes, 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.
Chinese origin steel rod is imported to Vietnam. In Vietnam, the steel rod is cut-to-length and liquid-coated. The processing operations for the steel rod in Vietnam are minor with the product remaining a steel rod. Therefore, the country of origin for the steel rod insert is China, for tariff purposes.
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 steel rod is placed into one side of the convolute paper tube to prevent the shade from bending/bowing when hung. The spring mechanism is inserted into the other end of the convolute paper tube and the steel end caps are attached.
The acrylic-coated polyester sheet is cut-to-length and attached with a piece of double-sided tape and rolled onto a convolute tube. A hem is sealed on the bottom of the sheet via high frequency melt-bonding, creating a pocket for the PVC hem slat.
The assembled blackout polyester fabric roller shade is shrink-wrapped and placed in a polyethylene terephthalate (PET) box with the steel brackets, PVC hem slat and other mounting hardware.
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 acrylic 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