CLA-2-49:OT:RR:NC:4:434
Judy Chi
Jean Cultural and Creative Co., Ltd.
No. 95-96 Baozhong Rd., Xindian District
New Taipei City, 231029
Taiwan
RE: A country of origin determination on greeting cards with matching envelopes
Dear Ms. Chi:
In your letter, dated December 2, 2024, you requested a country of origin ruling for the purpose of duty calculation and marking. A detailed description of the greeting cards and their manufacturing operations were submitted for our review in lieu of samples.
The finished goods to be imported are several styles of greeting cards. Each is imported packaged individually in a cellophane bag with a matching envelope. You present eight scenarios listing the country of manufacture for the raw materials and the country of manufacture for various components, including the “backfolder” and inner liner sheet of the card itself and the envelope with its liner, as well as the country of assembly for the finished cards and envelopes. You seek a country of origin determination for each scenario.
First, we will address classification. The applicable subheading for the greeting cards with their envelopes will be 4909.00.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Printed or illustrated postcards; printed cards bearing personal greetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings.” The rate of duty will be Free.
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 on the World Wide Web at https://hts.usitc.gov/current.
L1 (where “L” indicates a low level of complexity) is a folded paper greeting card bearing an illustrated winter scene of a church and snow-covered trees. Beneath the picture are the words “Merry Christmas.” Gold glitter highlights the illustration and words. An insert sheet is attached to the inside, which is blank, for the purchaser to write their own message. A matching envelope accompanies the card. In this scenario the parent rolls of paper are made in Taiwan. The paper is sent to China where it undergoes the following manufacturing operations: It is cut to size, printed with the designs and greetings, embellished with glitter, assembled, and folded. The paper is also formed into an envelope, with liner, by cutting, folding, and gluing. The card and envelope are then packaged together for retail sale and returned to Taiwan as the country out of which the goods will be shipped.
L2 is a folded paper greeting card bearing the image of a Christmas wreath on its face and the words, “Merry Christmas.” Gold foil accents adorn the wreath. Inside is an attached insert sheet with the greeting, “Wishing you all the Merriment of the Season and A Happy New Year.” A matching envelope accompanies the card. In this scenario the parent rolls of paper are made in Taiwan. The paper is sent to China where it undergoes the following manufacturing operations: It is cut to size, printed with the designs and greetings, embellished with foil, assembled, and folded. The paper is also formed into an envelope, with liner, by cutting, folding, and gluing. The product is returned to Taiwan where the card and envelope are then packaged together for retail sale and packed for international shipping.
L3 is a folded and die-cut paper greeting card (with envelope) bearing the image of three stacked wrapped gifts with bows and the words, “Happy Birthday.” Gold foil accents adorn the gifts, as well as a small piece of actual ribbon. Inside, on an attached insert sheet, is the message, “May your birthday be just as sweet as you are.” In this scenario the parent rolls of paper are made in Taiwan. The paper is sent to China where it undergoes the following manufacturing operations: It is cut to size to form the backfolder, which is printed with the designs and greetings, and embellished with foil and ribbon. The insert sheet is cut to size and printed, but not yet attached to the backfolder. The envelope liner is completely formed. The outer envelope is cut but not yet folded or assembled with the liner. The product is returned to Taiwan where the backfolder and card insert are joined and the envelope liner is assembled with the outer portion of the envelope. The cards and envelopes are then packaged together for retail sale and packed for international shipping.
Style M4 (where “M” indicates a medium level of complexity) is a folded paper card (with envelope) with the printed image of a fish and seaweed on the front, accented with foil. The fish has stripes, and some areas are designed for plastic “gems” to be glued on as embellishments. Such embellishments, which you refer to as “tip-ons,” will also be added to create the effect of bubbles. Inside, on the attached insert sheet, is the message “Sweet and Happy Birthday Wishes to You.” In this scenario the tip-on gems are made in China. Parent rolls of paper are made in Taiwan. The paper is sent to China where it undergoes the following manufacturing operations: It is cut to size, printed with the designs and greetings, embellished with foil, assembled, and folded. The paper is also formed into an envelope, with liner, by cutting, folding, and gluing. The product is returned to Taiwan where the plastic tip-on gems are adhered to the face of the card, and the card and envelope are then packaged together for retail sale and packed for international shipping.
Style M5 is a folded paper greeting card (with envelope) with the printed image of a sea turtle and coral on the front. The turtle’s shell is formed by a plastic “gem” tip-on, which has been glued to the card. Inside, the attached insert sheet reads, “Your birthday is the perfect time to let you know how special you are to me. Wishing you a wonderful day and a happy year ahead.” In this scenario the tip-on “gems” are made in Taiwan. Parent rolls of paper are made in Taiwan. The paper is sent to China where it undergoes the following manufacturing operations: It is cut to size, printed with the designs and greetings, assembled, and folded. The cards are then sent to Taiwan where the tip-on “gems” are glued to the face of the card. Also in Taiwan, paper is formed into an envelope, with liner, by cutting, folding, and gluing. The card and envelope are then packaged together for retail sale and packed for international shipping.
H6 (where “H” indicates a high level of complexity) is a folded paper greeting card (with envelope) bearing the image of Cinderella’s carriage and the words “Happy Birthday” on the front. The detailed carriage and horse are separately laser die-cut, printed pieces of paper that have been glued to the face of the card to provide dimension. The carriage and greeting are embellished with gold foil and a few plastic “gem” tip-ons. Inside, on the attached insert sheet, is the printed message, “May your birthday be just as sweet as you are.” In this scenario, parent rolls of paper are made in Taiwan. The paper is sent to China where it undergoes the following manufacturing operations: It is cut to size, printed with the underlying design elements (the interior of the carriage) and greetings, and the card and insert sheet are assembled. Still in China: the carriage and horse are die-cut, printed and embellished with hot foil glitter. Paper is formed into an envelope, with liner, by cutting, folding, and gluing. The cards, tip-ons (sourced in China), and envelopes are then sent to Taiwan. In Taiwan, the carriage and horse tip-ons are adhered to the face of the card. The “gem” tip-ons are glued to the face of the card. The finished card and envelope are packaged together for retail sale and packed for international shipping.
H7 is a folded paper greeting card (with envelope) bearing the illustration of a van with a luggage rack on top stacked with suitcases. The detailed van with luggage rack is a separately die-cut, printed piece of paper that has been glued to the face of the card to provide dimension. Under the van is printed “Happy Birthday” in font embellished with gold foil. Inside, on the attached insert sheet, is the message, “A very special wish for a wonderful day.” In this scenario the tip-on paper embellishments are made in China (from paper sourced in Taiwan). Parent rolls of paper are made in Taiwan. The paper is sent to China where it undergoes the following manufacturing operations: It is cut to size, printed with the background design (interior of the van and wheels) and greetings, assembled with the insert sheet, and folded. Still in China: the van with luggage rack is die-cut, printed and embellished with hot foil glitter. The card is then sent to Taiwan. In Taiwan: The tip-on paper embellishments (the exterior of the van with luggage rack) are glued to the face of the card. Paper is formed into an envelope, with liner, by cutting, folding, and gluing. The card and envelope are then packaged together for retail sale and packed for international shipping.
H8 is a folded paper greeting card (with envelope) bearing the illustration of a flower bouquet on the front. The detailed flowers and leaves are separately die-cut, printed pieces of paper that have been glued to the face of the card to provide dimension. Attached to the bouquet is a tag reading “For you, Mom.” Inside, on the attached insert sheet, is printed, “Sending bunches of happy wishes to my amazing mom for a very Happy Mother’s Day.” In this scenario parent rolls of paper are made in Taiwan. The paper is sent to China where it undergoes the following manufacturing operations: It is cut to size and printed with a background design on the face of the card, consisting of the paper wrapper to hold the bouquet and one flower and palm frond. The interior greeting is printed, and the card is assembled with the insert sheet, then folded. Paper is formed into an envelope, with liner, by cutting, folding, and gluing. The card is then sent to Taiwan. In Taiwan: the tip-on paper flowers and leaves are made by laser die-cutting and printing. The flowers and leaves are then glued to the card, along with the tag and a small string bow. The card and envelope are then packaged together for retail sale and packed for international shipping.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 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).
The parent rolls of paper from Taiwan are substantially transformed when printed with greetings/messages in China. When imported into the United States, the country of origin of these greeting cards, with their accompanying envelopes, will be China. The assembly processes carried out in Taiwan are considered to be minor assembly processes that do not constitute a substantial transformation. The manufacture of the envelopes, whether in China or Taiwan, does not affect the country of origin of the finished product for duty purposes, as the greeting card is the essential character of the set, and the envelope is simply classified along with the card.
Regarding the country of origin for the purposes of country of origin marking, the marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 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 section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (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, section 134.44, Customs Regulations (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.
All of the cards must be conspicuously, legibly, and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 with “Made in China.” The envelopes themselves that accompany cards M5 and H7, the envelopes being fully made in Taiwan, should also separately be marked “Made in Taiwan.” The marking indicating the country of origin for the cards (China) and the envelopes, in the case of styles M5 and H7 (Taiwan), should be visible from the outside of the packaging when the customer is purchasing the card. This can be accomplished if the bag is clear and the customer can easily read the country marking through the bag, or a label may be placed on the exterior of the bag reading “Made in China” or “Card made in China, Envelope made in Taiwan,” as applicable. You may submit a separate marking ruling request with marked samples if you wish for a determination on specific marking.
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 Charlene Miller [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division