CLA-2-94:OT:RR:NC:N5:433
Mireya Ruano
Veyer Logistics
6600 N Military Trail Boca Raton, FL 33496
RE: The tariff classification, country of origin, and marking of seats.
Dear Ms. Ruano:
In your letter dated October 16, 2024, you request a binding tariff classification, country of origin, and marking ruling. In lieu of samples, technical and illustrative literature, product descriptions, and manufacturing processes were provided.
The items subject of this ruling request are constructed of foreign and domestically sourced raw materials. A description of the items immediately follows.
The BTS25 Office Task Chairs, are a series of manual gas lift, variable height adjustment, ergonomic swivel seats that are constructed of metal frames. Each upholstered seat has a swivel mechanism, five wheeled casters, and no armrests. The backrests and seat foundations are constructed of polyurethane foam encased in textile. Seating is provided for a single individual. The seats will be manufactured in a variety of colors (SKU 5795129/Pink, SKU 4299513/Blue, SKU 4548851/Cream), packaged unassembled for retail sale, and will contain all hardware required for assembly.
The applicable subheading for the subject merchandise will be 9401.39.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Swivel seats with variable height adjustment: Other: Household. The rate of duty will be free.
Sourcing Scenario:
The ruling request outlines an operation wherein the seating components (textile fabrics, 50mm black casters (plastic), metal back bars, metal seat plates, 100mm stroke gas lifts, 280mm metal 5-star swivel bases) will be sourced in China. The seating components will be shipped and exported to Vietnam. In Vietnam, additional materials (polyurethane foam, plywood, thread, staples, glue, color labels, plastic bags, cardboard, and packing materials) will be locally sourced. In Vietnam, the incomplete, unassembled, and unfinished seating components will undergo manufacture, inspection, packaging, and then exportation to the United States.
Country of Origin:
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 your submission, in Vietnam, (1) the Chinese textile fabrics will be cut to specific shapes and dimensions using fabric cutting machines, (2) the Vietnamese foam will be cut to specific shapes and dimensions using foam cutting machines, (3) the cut to shape textile fabric seat foundations and the seat backrests will undergo assembly using sewing machines, (4) the Vietnamese plywood seat foundations and the seat backrests will be cut to specific shapes and dimensions, spray glued, and will undergo additional assembly using riveting machines, (5) the textile fabric components, the foam components, and the plywood components will undergo assembly and upholstery using hand tools and pneumatic stapling tools. In Vietnam, the complete, upholstered, and unassembled seating components will be inspected, packed, and then exported to the United States. Photographs of these processes were provided.
In the instant case, the Chinese components lose their identity during manufacture and undergo a substantial transformation in Vietnam to become complete and unassembled seats, thereby, taking on a new name, character, and identity. In view of these facts, the country of origin for the seats will be Vietnam.
Marking:
Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted by law, every article of foreign origin (or its container) imported into the United States 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 United States the English name of the country of origin of the article.
Part 134, Customs Regulations ( 19 C.F.R. Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Pursuant to 19 C.F.R. Section 134.1(b), the country of origin is the country of manufacture, production or growth of any article of foreign origin entering the U.S. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported.
A photograph of an English language marking label for the U.S. consumer market is provided. The marking label dimensions are 130mm in length x 80mm in width, is indelible and permanent, conspicuous, and is visible in printed ink. However, the print size is not known. The print size may require an increase to ensure it is legible. The label identifies the name of the manufacturer, address, date of manufacture, Factory ID, SKU No, Date of Delivery, and in close proximity is the phrase MADE IN VIETNAM. In view of these facts, the proposed marking and label will meet the statutory requirements of 19 C.F.R. Part 134.
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 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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division