CLA-2-48:OT:RR:NC:N5:130
Ms. Mireya Ruano
Veyer, LLC
6600 N. Military Trail
Boca Raton, FL 33496
RE: The tariff classification and country of origin of self-adhesive labels and perforated paper sheets
Dear Ms. Ruano:
In your letter, dated February 14, 2025, you requested a binding tariff classification and country of origin ruling for self-adhesive labels and perforated paper sheets. Product information and photos were submitted for our review.
The first item under consideration is Item #220472, Permanent File Folder Labels. The item is a package of sheets of self-adhesive file folder labels. Each sheet includes 30 labels measuring 2/3 high by 3 7/16 wide. The face side of the label sheets is unprinted. The release paper is printed on the back side with the Office Depot logo.
You describe a scenario in which the label jumbo roll is manufactured in China, but additional manufacturing takes place in Vietnam. The paper jumbo roll is shipped to Vietnam where it is die-cut into labels and applied to the release paper. The release paper is also printed in Vietnam. The packaging materials are manufactured in, and the labels are packaged in, Vietnam.
The second item under consideration is Item #463113, Name Badge Inserts. This item is a package of 50 8 x 11, uncoated, microperforated paperboard sheets that separate into eight business card-sized name badge inserts. The sheets are made of paperboard estimated to be around 300 grams per square meter. The sheets are printed at the top with the Office Depot logo and around the edges with paper and printer information. The sheets are also microperforated to separate into business-card size cards by folding. The sheets are designed to be fed through a home office printer.
You describe a scenario in which the paper jumbo roll is manufactured in China, but additional manufacturing takes place in Vietnam. The paper jumbo roll is shipped to Vietnam where it is die-cut into sheets, printed, and microperforated. The sheets are then packaged in Vietnam.
The applicable subheading for Item #220472, Permanent File Folder Labels, will be 4821.90.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Paper and paperboard labels of all kinds, whether or not printed: Other: Self-adhesive. The rate of duty will be free.
The applicable subheading for Item #463113, Name Badge Inserts, will be 4823.90.8680, HTSUS, which provides for Other paper, paperboard, cellulose wadding and webs of cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibers: Other: Other: Other: Other: Other: Other. The rate of duty will be free.
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).
For the Permanent File Folder Labels, a substantial transformation occurs when the self-adhesive paper is die-cut and combined with the release paper. At this point, the adhesive paper transforms into peelable, self-adhesive labels. We note that the operations in Vietnam change the heading from 4811 to 4821. Because these operations occur in Vietnam, the country of origin of the Permanent File Folder Labels will be Vietnam.
For the Name Badge Inserts, a substantial transformation occurs when the base paperboard is printed and micro-perforated. At this point, the paperboard is transformed into printable business cards or name badge inserts. We note that the operations in Vietnam change the heading from 4802 to 4823. Because these operations occur in Vietnam, the country of origin of the Name Badge Inserts will be Vietnam.
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, contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division