CLA-2-83:OT:RR:NC:N5:121

Lawrence Friedman
Barnes, Richardson & Colburn LLP
303 E Wacker, Suite 305
Chicago, IL 60601

RE: The tariff classification and country of origin marking of two unassembled gate latches.

Dear Mr. Friedman:

In your letter dated March 7, 2025, you requested a binding tariff classification and country of origin marking ruling on behalf of your client D&D Technologies. The request addressed two unassembled gate latches. In your letter, you also requested a country of origin ruling for the purposes of Section 301 duties on the two unassembled gate latches. The country of origin ruling for the purposes of Section 301 and IEEPA duties request will be considered by our Regulations and Rulings directorate at Customs and Border Protection Headquarters and will be issued under separate cover.

The products under consideration are described as a Toggle Latch (T-Latch) and a Q-bolt Latch (Q-Latch). Both of these products are latches for a gate. The T-Latch consists of three pieces of plastic housing (cover, backing plate, and catch), a stainless-steel T-latch striker pin/striker bolt, and mounting screws. The T-latch striker pin consists of two pieces of unthreaded metal rod that are pressed together so that they form a T-shape. The Q-Latch consists of two pieces of plastic housing, a stainless-steel Q-bolt drop rod, and mounting screws. The Q-bolt drop rod is a 24-inch stainless-steel unthreaded rod that is chamfered on both ends and bent into an almost complete U-shape on one of the ends. You state that both of these latches are imported complete and together but unassembled. The consumer will assemble the components of the latch on their specific gate. For each latch the steel component functions to hold the gate closed and is the most expensive component.

You state the stainless-steel T-latch striker pin and Q-bolt drop rod are made in China; the steel screws are made in Taiwan; and the plastic housings, the packaging bags, stickers, and instructions are made in Australia. The T-latch striker pins, Q-bolt drop rods, and screws are shipped to Australia where workers package them together with the plastic housings for exportation to the United States.

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If the goods cannot be classified solely based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.

Since the subject articles are imported unassembled, GRI 2(a) of the HTSUS applies. Under GRI 2(a) of the HTSUS, “Any reference to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule) entered unassembled or disassembled.” The subject articles are complete unassembled gate latches and will thus, by virtue of GRI 2(a), be classified as complete and assembled gate latches.

Since the gate latches are composed of different materials (metal and plastic), they are considered composite goods for tariff purposes. The ENs to the HTSUS, GRI 3(b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may, for example, be determined by the nature of the materials or components, its bulk, quantity, weight, or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good.

With respect to these gate latches, we must determine whether the plastic housing or the T-latch striker pin and Q-bolt drop rod imparts the essential character to the subject gate latches. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the steel components function as the fastening mechanism to hold the gate closed. We also note that the steel components predominate by value. Therefore, it is the opinion of this office that the steel T-latch striker pin and Q-bolt drop rod impart the essential character to the composite articles. In accordance with GRI 3(b) the gate latches will be classified by their base metal component.

The applicable subheading for the Toggle Latch (T-Latch) and a Q-bolt Latch (Q-Latch) gate latches will be 8302.49.6085, HTSUS, which provides for Base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like …: Other mountings, fittings and similar articles, and parts thereof: Other: Other: Of iron or steel, of aluminum or of zinc: Other: Other. The general column 1 duty rate is 5.7% ad valorum.

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 marking statute, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).

Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the ?country of origin? within the meaning of the marking laws and regulations.

A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).

According to your submission, the stainless-steel T-latch striker pin and Q-bolt drop rod are made in China; the steel screws are made in Taiwan; and the plastic housings, the packaging bags, stickers, and instructions are made in Australia. The T-latch striker pins, Q-bolt drop rods, and screws are shipped to Australia where workers package them together with the plastic housings for exportation to the United States. As indicated above, we find that the steel T-latch striker pin and Q-bolt drop rod that are made in China provide the essential character of both gate latches. It is the opinion of this office that the simple combining of components is not sufficient to effect a substantial transformation of the Chinese-origin T-latch striker pin and Q-bolt drop rod. As such, we find that the country of origin for the gate latches for marking purposes is China. Please note, this determination is for marking purposes only. Your question regarding country of origin for the duty purposes of Section 301 and IEEPA will be addressed under separate cover.

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 Jennifer Jameson at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division