CLA-2-95:OT:RR:NC:N4:424
Jacko Wang
Goodway Import & Export Co., Ltd
Building 12,
Hengji Xuhui North District, Lane 1188,
Shanghai, 201107
China
RE: The country-of-origin of a plush dinosaur toy
Dear Mr. Wang:
In your letter submitted on November 5, 2024, you requested a binding ruling on behalf of your client, Target, for a country-of-origin determination regarding a plush dinosaur toy. A sample, photographs and a description of the Pink Dinosaur Toy, were submitted with your inquiry. The product sample will be retained for training purposes.
The product under consideration, identified as item number 097-02-0291, is a plush dinosaur toy measuring 22 in length and 12 in width. As stated in your request, you present two manufacturing operations scenarios for the plush dinosaur toy.
In the first scenario you state that the polyester knit fabric, which is used for the toy's body shell, and the polyester Micromink faux fur fabric which is used for the toy's dorsal fin, is sourced from China. You further state that in China the fabrics are cut to shape, sewn and embroidered. A gap is left in seam of the body shell to facilitate stuffing. The product is then shipped to Vietnam for further processing.
In Vietnam the toy is filled with polyester fiber fill stuffing and a mesh bag containing TPE plastic pellets. The plush dinosaur toy is sewn closed and finished with seam binding and labeling. The polyester fiber fill stuffing, TPE plastic pellets, mesh bag, seam binding, washing instructions label, hangtag, polybag, and master carton are all sourced from Vietnam. The finished product is then shipped to the United States.
In the second scenario you state that rolls of the polyester knit fabrics described above, are sourced from China and shipped to Vietnam. In Vietnam the fabric is cut to shape, sewn and embroidered to form the body and dorsal fin of the plush dinosaur toy. The toy is then filled with polyester fiber fill stuffing and a mesh bag containing TPE plastic pellets. The plush dinosaur toy is sewn closed and finished with seam binding and labeling. The polyester fiber fill stuffing, TPE plastic pellets, mesh bag, seam binding, washing instructions label, hangtag, polybag, and master carton are all sourced from Vietnam. The finished product is then shipped to the United States.
ISSUE:
What is the country of origin of the plush dinosaur toy?
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
With regard to your request for the appropriate country of origin of the plush dinosaur toy, 19 C.F.R. 134.1(b) provides in pertinent part as follows: Country of origin means 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.
As stated in HQ 735009, dated July 30, 1993, The country of origin is the country where the article last underwent a substantial transformation' that is, processing which results in a change in the article's name, character, or use. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, and use, different from that possessed by the article prior to processing. See
Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993).
In order to determine whether a substantial transformation occurs when components of various origins 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 operations that are minimal will generally not result in a substantial transformation. Here, there are two manufacturing scenarios presented.
With respect to the first scenario, described above, the polyester knit fabric that is used for the toy's body shell and the polyester Micromink faux fur fabric that is used for the toy's dorsal fin is sourced in China, and the fabrics are cut to shape and sewn in China. While the final assembly of the plush dinosaur toy occurs in Vietnam, where it is stuffed, sewn closed, and washing instructions and product labels are put on, the plush dinosaur toy is not substantially transformed by these operations in Vietnam. Indeed, upon leaving China for Vietnam, the product's predetermined name, character and use is settled, namely being a plush dinosaur toy. Therefore, under the first scenario, the country of origin of the plush dinosaur toy is China.
In the second scenario, the fabrics composing the toy's body shell and dorsal fin are sourced in China and shipped to Vietnam in rolls (i.e., uncut and not sewn to shape). Whereas in first scenario, the plush dinosaur toy was cut and sewn to shape in China, in second scenario the plush dinosaur toy is cut and sewn to shape in Vietnam using the fabrics sourced in and shipped from China. While both scenarios involve stuffing and finishing operations occurring in Vietnam, it is the cutting and sewing to shape that determines the character of the article, namely the dinosaur toy shape. Therefore, in second scenario, the fabrics sourced in China and shipped to Vietnam undergo a substantial transformation by being cut to shape, sewn, and embroidered into the plush dinosaur toy without filling. Therefore, under second scenario, the country of origin of the plush dinosaur toy is Vietnam.
HOLDING:
Based on the information submitted, in the first scenario, the country of origin of the plush dinosaur toy is China. In the second scenario, the country of origin of the plush dinosaur toy is Vietnam.
Please note that separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. You should contact the Federal Trade Commission, Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to this item. Information can also be found at the FTC website www.ftc.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 Regulations (19 C.F.R. 177).
Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.
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 Roseanne Murphy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division