CLA-2-84:OT:RR:NC:N1:105
Jong Wook Kim Unione Customs Brokerage Office 18, Hakdong-ro 31-gil, Gangnam-gu Seoul, Republic of Korea, 1F
RE: The tariff classification, country of origin, and status under the United States-Korea Free Trade Agreement (UKFTA) of a spray bottle
Dear Mr. Kim:
In your letter dated December 30, 2024, on behalf of your client, Yonwoo Company Limited, you requested a tariff classification, country of origin and status under the UKFTA ruling on a vacuum pump container. The item under consideration is described as a vacuum pump container (model number KANG0017S). The device combines a plastic cosmetic container with an attached pump, button, snap on cap, and over cap. The vacuum pump container will be imported empty and later filled with cosmetic creams, lotions, or other similar products in the United States. In operation, the user will open the plastic cap and then press the plastic button on the top of the pump as many times as needed to draw out the desired amount of liquid from the cosmetic tube and into the user’s hand.
As suggested in your letter, the applicable subheading for the vacuum pump container (model number KANG0017S) will be 8424.89.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof: Other Appliances: Other.” The general rate of duty will be 1.8% 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/.
Regarding the country of origin of the vacuum pump container. The manufacturing process includes several steps. The first step occurs in China where Korean produced resin is molded into the tube-shaped sleeves. This involves the extrusion of the sleeve body, coating and painting, and extrusion of the top of the sleeve. The sleeves are made predominately of low-density polyethylene (LDPE) resin with some ethylene vinyl alcohol (EVOH) mixed in as a light and moisture barrier. Next, in Korea, the Chinese sleeves are assembled (screwed and snapped into place) with the Korean produced snap-on cap, button, valve, and over cap. Finally, the finished product is packaged and prepared for shipment to the United States. 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).
In regard to the country of origin of the vacuum pump container, it is our opinion that while the assembly process is fairly simple, the use of the individual items changed. We find that the combining of the parts in Korea changes the individual items into a different article of commerce with a name, character, and use distinct from the individual components. Essentially, a Chinese container used to hold liquids is transformed by the essential components (the pump and button) into a spray bottle. Accordingly, the country of origin of the vacuum pump container (model number KANG0017S) will be South Korea, which is where the button and pump are manufactured and where the final assembly process is performed. In your letter, you also request a ruling on the status under the UKFTA. General Note 33, HTSUS, sets forth the criteria for determining whether a good is originating under the UKFTA. General Note 33(b), HTSUS, (19 U.S.C. § 1202) states that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country under the terms of this note if- (i) the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both; (ii) the good is produced entirely in the territory of Korea or of the United States or both, and - (A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or (B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and satisfies all other applicable requirements of this note and of applicable regulations; or (iii) the good is produced entirely in the territory of Korea or the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above. For the purposes of this note, the term “UKFTA country” refers only to Korea or to the United States. For goods classified in subheading 8424.89, General Note 33(o)/Chapter 84/54 requires: A change to subheadings 8424.10 through 8430.69 from any other subheading. The originating Korean goods include the over cap, button, snap on cap, and pump. Therefore, the only item requiring the above-mentioned tariff shift would be the tube-shaped sleeve, which is a Chinese component classified in Chapter 39. In our opinion, since the tube-shaped sleeve changes from a simple plastic sleeve of Chapter 39 to a fully functional vacuum pump container of subheading 8424.89, HTSUS, the tariff shift requirement is met. Based on the facts provided, the goods described above are eligible for UKFTA preferential treatment, because they meet the requirements of HTSUS General Note 33(b)(ii). The goods will therefore be entitled to a Free rate of duty under the UKFTA upon compliance with all applicable laws, regulations, and agreements. 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 Jason Christie at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division