CLA-2-84:OT:RR:NC:N1:105
Mireya Ruano Veyer LLC 6600 N Military Trail Boca Raton, FL 33496
RE: The tariff classification and country of origin of a tape gun
Dear Ms. Ruano:
In your letter dated February 12, 2025, you requested a tariff classification and country of origin determination ruling.
The item under consideration is described as a tape and dispenser set, which includes two rolls of heavy-duty tape along with a tape dispenser. The items are packaged together and imported under item number 7063910. The heavy-duty tape measures 1.89 inches x 2,548.8 inches (70.8 yards) and is used for sealing shipping packages. The tape dispenser is made of metal with a plastic handle, an adjustable tension brake for easy dispensing, and a blade that cuts through tape for removal.
General Rule of Interpretation (GRI) 1, of the Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS.GRI 3(a) states in part that when two or more headings each refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the good.
The instant good consists of at least two different articles that are, prima facie, classifiable in different headings, the tape in heading 3919, HTSUS, and the dispenser in heading 8422, HTSUS.It consists of articles put up together to carry out a specific activity (i.e., sealing packages). Finally, the articles are put up in a manner suitable for sale directly to users without repacking. Therefore, the good in question is within the term goods put up in sets for retail sale.GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to 3(a), are to be classified as if they consisted of the component which gives them their essential character. It is the opinion of this office that the essential character of this set is imparted by the dispenser.
The applicable subheading for the tape and dispenser set, item 7063910, will be 8422.30.9191, HTSUS, which provides for Dishwashing machines; machinery for cleaning or drying bottles or other containers; machinery for filling, closing, sealing or labeling bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars, tubes and similar containers; other packing or wrapping machinery (including heat-shrink wrapping machinery); machinery for aerating beverages; parts thereof: Machinery for filling, closing, sealing or labeling bottles, cans, boxes, bags or other containers; machinery for capsuling bottles, jars, tubes and similar containers; machinery for aerating beverages: Other: Machinery for filling, closing, sealing, capsuling or labeling boxes, bags or similar containers: Other.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 at https://hts.usitc.gov/.
Regarding the origin of the tape and dispenser set, the tape and paper core from Taiwan represents roughly forty percent of the overall cost of the set, while the tape dispenser from Cambodia represents fifty-four percent. The remaining percentage includes a synthetic paper label, shrink film, and the shipping carton from Taiwan.
In Taiwan, the process begins with the preparation of the raw material. This includes dehumidifying the cut paper cores before production. Next, the coated jumbo rolls are placed on the slitting machine and the required length is programmed. The individual paper cores are then placed into the slitting machine with sensors tasked to detect whether there is a cut paper core on each axle. Using rotary circular blades, the slitting machine cuts the jumbo tape roll into the desired length with sensors facilitating the alignment of the cores to produce cut rolls of tape. This is followed by offloading the tapes onto the conveyer. A worker will then manually place one tape roll onto the tape gun (which is fully constructed in Cambodia) and put another roll beside the gun before wrapping in film. Stickers are then placed on the film and the completed sets are packaged for shipping.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter 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).
Regarding the origin of the tape and dispenser set, item 7063910, it is the opinion of this office that the combining of the Taiwanese produced tape with the Cambodian produced tape dispenser in Taiwan does not substantially transform the dispenser. We consider the dispenser the essential component of the set and does not result in a new name, character, or use when combined with the tape, which is a replaceable component. As a result, the country of origin for the tape and dispenser set, item 7063910, will be Cambodia upon importation into the United States.
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