CLA-2-94:OT:RR:NC:N5:433
Mireya Ruano
Veyer Logistics
6600 N Military Trail Boca Raton, FL 33496
RE: The tariff classification and country of origin of seats.
Dear Ms. Ruano:
In your letter dated October 16, 2024, you requested a tariff classification and country of origin binding 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. Descriptions of the items immediately follows.
Item 1, SKU# 4083815, the “Fendley Office Chair,” Item 2, SKU# 3977455, the “Lyndale Office Chair,” Item 3, SKU# 7134573, the “i6000 Mid-Back Chair,” Item 4, SKU# 7712903, the “iComfort Executive Cantilever Arm Chair,” and Item 5, SKU# 4983432, the “i6000 Big & Tall Chair,” 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, armrests, wooden seat foundation decks, and wooden seat backrest decks. Dependent on the seat SKU#, the upholstery materials will be comprised of foam encased in either bonded leather + mesh or solvent free polyurethane (EPU) leather + polyvinylchloride (PVC). Each seat will provide seating for a single individual. Each seat will be imported unassembled, packaged for retail sale, and will contain all hardware required for assembly.
The applicable subheading for items 1 thru 5 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 Scenarios: The ruling request outlines 5 sourcing operations; common to each of the 5 sourcing operations will be the plastic component (polyurethane foam) from Vietnam and textile components (rolls of upholstery fabric), the metal components (seat plates, bolts, gas lifts), and the plastic components (casters) from China. Additionally, the remaining seat components for sourcing operation 1 and item 1 will be the wood components (plywood seat foundation, plywood seat backrest, armrests, 5-star swivel base) from Vietnam. The remaining seat components for sourcing operation 2 and item 2 will be the wood components (plywood seat foundation, plywood seat backrest) from Vietnam and metal components (armrests, 5-star swivel base) from China. The remaining seat components for sourcing operation 3 and item 3 will be the wood components (plywood seat foundation, plywood seat backrest) and the plastic components (armrests, lumbar) from China and the plastic component (5-star swivel base) from Vietnam. The remaining seat components for sourcing operation 4 and item 4 will be the wood components (plywood seat foundation, plywood seat backrest) and the plastic components (armrests, 5-star swivel base) from Vietnam and the plastic component (lumbar) from China. The remaining seat components for sourcing operation 5 and item 5 will be the wood components (plywood seat foundation, plywood seat backrest) and the plastic component (lumbar) from China and plastic components (armrests, 5-star swivel base) from Vietnam. In Vietnam, for each sourcing operation and each seat, the incomplete, unassembled, and unfinished seating components will undergo manufacture, inspection, packaging, labeling 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, dimensions, and then molded using foam cutting and molding machines, (3) the cut to shape textile fabric seat foundations and the seat backrests will undergo assembly using sewing machines, (4) the plywood seat foundations and the seat backrests will be cut to specific shapes and dimensions, spray glued, and will undergo additional assembly using drilling and riveting machines, (5) dependent on the seat SKU number, certain wood components will undergo shearing, polishing, surface sanding, vertical milling, grooving and drilling, (6) dependent on the seat SKU number, certain metal components will undergo welding, grinding, powder coating, and spray painting, and (7) the seating components will undergo final assembly and upholstery using hand tools, pneumatic stapling tools, gluing and nailing machines. In Vietnam, the complete, upholstered, and unassembled seating components will be inspected, packed, labeled, and then exported to the United States. Photographs of these processes were provided.
In the instant case, for items 1 thru 5, the Chinese components lose their identity during manufacture and undergo a substantial transformation in Vietnam to become complete and unassembled seats, thereby, taking on new names, characters, and identities. In view of these facts, the country of origin for items 1 thru 5 will be Vietnam.
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