CLA-2-94:OT:RR:NC:N5:433
Mireya Ruano
Veyer LLC
6600 N Military Trail
Boca Raton, FL 33496
RE: The tariff classification and country of origin of a seat.
Dear Ms. Ruano:
In your letter dated February 13, 2025, you requested a tariff classification and country of origin determination ruling. In lieu of samples, technical and illustrative literature, a product description, and manufacturing processes were provided.
The item subject of this ruling request is constructed of foreign and domestically sourced raw materials. A description of the item immediately follows.
The Saphira Gaming Chair, SKU # 9550554, is a manual gas lift and variable height adjustment swivel seat that is constructed of a plastic, wood, and metal frame. The upholstered seat has a swivel mechanism, five wheeled casters, and armrests. The seat incorporates a recline mechanism that allows the seat backrest to incline and decline. A retractable and padded leg rest is located underneath the seat foundation. The seat backrest and the seat foundation are constructed of polyurethane foam cushions encased in textile fabric and artificial leather. Seating is provided for a single individual. The seat foundation dimensions approximate 21.06 in length and 22.44 in width. The seat will be packaged unassembled for retail sale and will contain all hardware required for assembly.
The applicable subheading for the subject merchandise will be 9401.39.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Swivel seats with variable height adjustment: Other: Household. The rate of duty will be free.
Sourcing Scenario:
The ruling request outlines an operation wherein the seating components (textile fabrics, artificial leather, molded foam, plastic components (armrests, 60mm casters), and metal components (J-bar, base, gas lift, seat plate, bolts)) will be sourced in China. The seating components will be shipped and exported to Vietnam. In Vietnam, additional materials (polyurethane foam, plywood, thread, staples, glue, labels, plastic bags, cardboard, and packing materials) will be locally sourced. In Vietnam, the incomplete, unassembled, and unfinished seating components will undergo manufacture, inspection, packaging, and then exportation to the United States.
Country of Origin:
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).
Per your submission, in Vietnam, (1) the Chinese textile fabrics and the artificial leather will be cut to specific shapes, panels, and dimensions using fabric cutting machines, (2) the Chinese foam and the Vietnamese foam will be cut to specific shapes and dimensions using foam cutting machines, (3) the Vietnamese plywood seat foundations and the Vietnamese seat backrests will be cut to specific shapes and dimensions, drilled with screws and nailed, (4) the cut to shape textile fabric and the artificial leather seat components will undergo assembly using sewing machines, and (5) the textile fabric and the artificial leather components, the foam components, and the plywood components will undergo assembly and upholstery using hand tools and pneumatic stapling tools. In Vietnam, the complete, upholstered, and unassembled seating components will be cleaned, inspected, labeled, packed, and then exported to the United States. Photographs of these processes were provided.
In the instant case, the Chinese components lose their identity during manufacture and undergo a substantial transformation in Vietnam to become a complete and unassembled seat, thereby, taking on a new name, character, and identity. In view of these facts, the country of origin for the seat will be Vietnam.
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/.
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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division