CLA-2 OT:RR:CTF:TCM H252876 CkG
Cheryl Chadwick
V.P. & Deputy General Counsel
BIC Consumer Products
One BIC Way, Suite 1
Shelton, Connecticut 06484-6299
Re: Request for binding ruling on the country of origin of disposable and semi-disposable razors
Dear Ms. Chadwick,
This is in response to your request of February 28, 2014, for a country of origin determination on two styles of disposable razors.
FACTS:
At issue are two styles of disposable razors assembled in Mexico. The one piece, disposable razors are assembled in Mexico from a molded plastic razor head, plastic cartridge and steel razor blades manufactured in Greece, and a molded plastic handle manufactured in Mexico from raw materials of Korean, German and/or Italian origin. The assembly process in Mexico consists of attaching the head and handle into a single, one piece razor which is then packaged and shipped to the United States.
The two-piece, semi-disposable razors consist of the following components: four replacement razor heads or cartridges in a covered plastic tray, all of which are made in Greece; and a plastic handle featuring a “lock and release button”, which is manufactured in Mexico from raw materials of Korean and French origin whereby the handle and lock and release button are formed by an injection molding process and manually attached to one another. The four razor cartridges and covered tray are packaged with the plastic handle for retail sale in Mexico and shipped to the United States.
ISSUE:
The country of origin of disposable and semi-disposable razors
LAW AND ANALYSIS:
Classification
Classification of goods under the HTSUS is governed by the General Rules of
Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of 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.
GRI 2(a) provides that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, 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 falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
The HTSUS provisions under consideration are as follows:
8212: Razors and razor blades (including razor blade blanks in strips), and base metal parts thereof:
8212.10.00: Razors…
* * * *
Both styles of razor are classified in heading 8212, HTSUS, as razors. The one-piece disposable razor is classified in heading 8212 at GRI 1. The semi-disposable razor is imported in an unassembled condition, as the razor handle and razor head are packaged separately. As all of the components of the semi-disposable razor are imported into the U.S. together and have the essential character of the finished article, the semi-disposable razor is classified in heading 8212, HTSUS, via GRI 2(a).
We note that the semi-disposable razor comes with 4 razor heads. The General Explanatory Note to Rule 2(a) states in part that unassembled components of an article that are in excess of the number required for the article when complete are to be classified separately. The remaining three razor heads are thus classified separately in heading 8212, HTSUS, as razor blades.
Country of Origin:
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article.
Section 134.1(j), CBP Regulations (19 C.F.R. 134.1(j)), provides that the “NAFTA Marking Rules” are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g), CBP Regulations (19 C.F.R. 134.1(g)), defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules, set forth at 19 C.F.R. Part 102.
Section 102.11(a), CBP Regulations (19 C.F.R. 102.11(a)), sets forth the required hierarchy under the NAFTA Marking Rules for determining country of origin for marking purposes. This section states that the country of origin of a good is the country in which:
The good is wholly obtained or produced;
The good is produced exclusively from domestic materials; or
Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in [section] 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
Section 102.1(g), CBP Regulations (19 C.F.R. 102.1(g)), defines a good wholly obtained or produced as including “A good produced in that country exclusively from goods referred to in paragraphs (g)(1) through (g)(10) of this section or from their derivatives, at any stage of production.” Because the components of the instant razors are manufactured in both Mexico and Greece, the razors would not qualify as “a good wholly obtained or produced” in a country. Therefore, the country of origin of the BIC razors may not be determined under section 102.11(a)(1).
The next step under the hierarchy is to consider whether the country of origin may be determined according to section 102.11(a)(2). Under this section, the origin of the good may be based on the origin of the materials used to produce the good, provided the good is produced exclusively from domestic materials. Section 102.1(d), CBP Regulations (19 C.F.R. 102.1(d)), defines domestic material as “a material whose country of origin as determined under these rules is the same country as the country in which the good is produced.”
Because the BIC razors are produced from raw materials of various countries, including Germany, Korea, Italy and France, the country of origin cannot be determined under section 102.11(a)(2). Analysis must continue to 19 C.F.R. 102.11(a)(3).
Pursuant to 19 C.F.R. 102.11(a)(3), the country of origin of a good is the country in which “each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in §102.20 and satisfies any other applicable requirements of that section.” Section 102.1(e), CBP Regulations (19 C.F.R. 102.1(e)) defines “Foreign material” as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.”
In the instant case, the molded plastic razor handles, manufactured in Mexico, are classified in heading 3926, as an other article of plastic. The plastic razor heads and razor blades are manufactured in Greece. The razor head and blades together are classified in heading 8212. The finished one-piece razors, when assembled in Mexico, as well as the semi-disposable razor heads and handle, when packaged together in Mexico, are classified in heading 8212. The tariff shift rule for heading 8212 is set forth in 19 CFR 102.20(n), and provides as follows: “a change to heading 8208 through 8215 from any other heading, including another heading within that group.” Neither the assembly of the one-piece razors nor the packaging of the semi-disposable razor components in Mexico satisfy the above tariff shift rule, because the razor head does not undergo a required change in tariff classification as a result of the operations in Mexico.
19 CFR 102.11(b), in turn, provides that: “Except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of this section: (1) The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good”. In the instant case, the single material or component which imparts the essential character to both styles of razor is the razor head (containing the razor blades), which is produced in Greece; the razor head and blades perform the essential function of the razor—i.e., to shave—a function which can be performed without the handle. In addition, as noted by BIC, the handle for the semi-disposable razor cannot be reused after the razor cartridges sold with the handle are fully used since BIC does not sell replacement razor cartridges for the handle.
Accordingly, per 19 CFR 102.11(b), the country of origin of the instant merchandise is Greece.
HOLDING:
The country of origin of both styles of BIC razors at issue is Greece.
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise was entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.
Sincerely,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch