CLA-2-39:OT:RR:NC:N4:415
Nico Tedeski
N&U Sport Horse Shoes GmbH
Friedrichstrasse 23/9
Baden, 2500
Austria
RE: The tariff classification, marking, and country of origin of a plastic horseshoe kit.
Dear Mr. Tedeski:
In your letter dated October 31, 2024, you requested a tariff classification, marking, and country of origin ruling.
Images were provided in lieu of a sample.
The product under consideration is described in your submission as the SHS glue-on horseshoe kit. This set includes thermoplastic polyurethane horseshoes that feature very high bond (VHB) tape on its tabs to secure the shoes to the horse hoof, a liquid primer, and a nylon brush with a wood handle to be used with the primer. The primer will come in a glass jar with a metal twist-off cap, and all the contents will be packaged together in a cardboard box. We find this kit to be a set for classification purposes, and the plastic glue-on horseshoes would impart the essential character, General Rule of Interpretation 3(b) noted.
While you indicate that you believe these horseshoes may be appropriately classified under heading 4201, we disagree and find them to be most similar to those ruled upon in New York ruling N255437, dated August 13, 2014, and we will classify these in the same manner within heading 3926.
As these plastic horseshoes would be considered articles of plastic, and as they are not more specifically provided for elsewhere, the applicable subheading for this kit will be 3926.90.9989, Harmonized Tariff Schedule of the United States (HTSUS), which provides for [o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [o]ther: [o]ther. The column one, general rate of duty is 5.3 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/current.
In consideration of the appropriate marking and country of origin for these kits, we look to your submission that indicates that the horseshoes are injection-molded in Austria from Italian-sourced thermoplastic polyurethane granulate, the bonding tape and liquid primer are sourced from the United States, and the brush is of Chinese origin.
Pursuant to Part 134, Customs Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 USC 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines country of origin as: [t]he 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. 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. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993).
In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation.
This office reviewed the provided documentation and find that the Italian plastic granulate is substantially transformed in Austria to form the finished horseshoes, and the country of origin for this glue-on horseshoe kit would be Austria.
The marking statute, section 304, Tariff Act of 1930, as amended (19 USC 1304), provides that, unless excepted, every article of foreign origin (or its container) 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.
As provided in 19 CFR 134.41(b), the country-of-origin marking is considered conspicuous if the ultimate purchaser in the U.S. can find the marking easily and read it without strain.
Regarding the permanency of a marking, 19 CFR 134.41(a) provides that, as a general rule, marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, 19 CFR 134.44 generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser, unless deliberately removed, is acceptable.
As to the marking of the subject glue-on horseshoe kit, we look to the Treasury Decision (T.D.) 91-7, published in Volume 25, Customs Bulletin and Decisions, at 6 (January 16, 1991), which addressed, among other things, the application of country of origin marking requirements to sets. It was stated therein, at 16:
in most cases, the mere inclusion of an item in a collection will not substantially transform it into an article with a new name, character or use and, therefore, each item must be separately marked with its own country of origin.(Where the marking of the container will reasonably indicate the country of origin to the ultimate purchaser, the container may be marked instead of the individual articles.See 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d)).This result is consistent with the purpose of the marking statute since the ultimate purchaser's decision as to whether to buy the set might be influenced by the country of origin of any of the items in the set, whether or not an item gives the set its essential character.
We find that marking the exterior packaging box is acceptable for the importation of these glue-on horseshoe kits and would satisfy 19 USC 1304(a)(3)(D), as the container will reasonably indicate the origin of these articles to the ultimate purchaser. Though, as it contains products sourced from multiple countries that have not also been substantially transformed in Austria, you will need to mark the box to indicate each component's specific country of origin.
Please note, whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508, on the propriety of proposed markings indicating that an article is made in the USA.
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 CFR 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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division