OT:RR:CTF:VS H348058 AP

Michael Hollander
Whole Space Industries Ltd.
400 West Main Street
Babylon, New York 11702

RE: PVC Cordless Mini Blinds; U.S. Content; 9903.01.34, HTSUS

Dear Mr. Hollander:

This is in response to your April 30, 2025 ruling request, on behalf of Whole Space Industries Ltd. (the “requester”), asking whether polyvinyl chloride (“PVC”) suspension resin SE800 (“PVC resin”) used to make cordless mini blinds in Vietnam qualifies for the exemption under subheading 9903.01.34, Harmonized Tariff Schedule of the United States (“HTSUS”), and Chapter 99, Subchapter III, U.S. Note 2(v)(xii), HTSUS.

The requester has asked that certain information submitted in connection with this ruling be treated as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved. The information contained within brackets in this ruling or in the attachments to the ruling request, forwarded to our office, will not be released to the public and will be withheld from published versions of this ruling.

FACTS:

Whole Space Industries Ltd. is a supplier of window coverings servicing customers in the United States. The requester owns a factory in Vietnam, which manufactures 1” light filtering PVC cordless mini blinds, 1” room darkening PVC cordless mini blinds, and 2” faux wood PVC cordless mini blinds in different sizes that will be imported into the United States. All components of the mini blinds will be made and assembled in Vietnam from PVC suspension resin SE800 manufactured in the United States. The U.S. PVC resin will be compounded with other ingredients in Vietnam to make PVC compound in the form of pellets. The pellets will be extruded into the mini blind components, such as the slats. The PVC compound will consist of [x] percent U.S. PVC resin, [x] percent [x], and other additives. The requester has determined the U.S.-made PVC content percentage of the mini blinds by multiplying the U.S. PVC resin portion of the PVC compound (i.e., [x] percent) by the percentage of PVC compound in the mini blind, which varies for each mini blind depending on its type and size. The requester has provided the following information for the 1” light filtering PVC cordless mini blind 23 x 64:

• The PVC compound percentage is [x] percent and consists of 31 percent U.S. PVC resin and [x] percent additives including [x]. The remaining [x] percent of the blinds include other costs (i.e., ladder strings and cords, packaging materials, labor costs, overhead). • The U.S. content of 31 percent is calculated by multiplying the fixed [x] percent PVC resin percentage under the proprietary formula by the [x] percent PVC compound. • The requester arrived at the $[x] price paid or payable for each 1” light filtering PVC cordless mini blind 23 x 64 by adding the U.S. content ($[x] or 31 percent), the cost of the [x] and other additives ($[x]) or [x] percent), and the other costs for ladder strings and cords, packaging materials, labor, overhead ([x] percent or $[x]).

To procure the U.S. PVC resin, the requester sent a purchase order to an agent in Singapore for [x] metric tons (“MTS”) of PVC suspension resin SE800 priced at $[x] ($[x] per MTS). The shipping terms on the purchase order were “CIF, Haiphong, Vietnam.” The requester submitted proof of payment. The requester explained that the supplier’s agent purchased the PVC resin from a U.S. manufacturer located in the United States, specifically [x]. The commercial invoice from the supplier’s agent to the requester is for [x] MTS of resin ([x] bags) priced at $[x] ($[x] per MTS). The manufacturer was [x], the port of loading was in the United States at [x], and the place of delivery was Haiphong, Vietnam. The Incoterms were “CIF, Haiphong, Vietnam.” The packing list reveals that [x] MTS of resin ([x] bags) produced by the U.S. manufacturer [x] were shipped from the United States at [x] to Haiphong, Vietnam, on March 14, 2025.” According to the bill of lading, the shipper was the U.S. manufacturer [x] and [x] bags of resin ([x] MTS) departed from the United States at [x] to Haiphong, Vietnam on March 14, 2025. The U.S. manufacturer issued a certificate of analysis dated March 14, 2025, to the requester to verify the resin’s quality and compliance with specified standards. The certificate of origin from the agent in Singapore and the certificate of origin from the U.S. shipper’s forwarding agent certify that the exported [x] MTS of resin manufactured in the United States are U.S.-originating.

The sample commercial invoice to the U.S. customer for 1” light filtering PVC cordless mini blinds reveals that the blinds produced in Vietnam will be shipped from Vietnam to the United States, and the Incoterms will be “FOB Haiphong.” The unit price of 1” light filtering PVC cordless mini blinds 23 x 64 will be $[x]. The total price paid or payable for 1,208 1” light filtering PVC cordless mini blinds 23 x 64 will be $[x]. This represents the customs value.

ISSUE:

Whether the U.S.-originating PVC resin used to produce 1” light filtering PVC cordless mini blinds 23 x 64 qualifies for the U.S. content exemption under subheading 9903.01.34, HTSUS.

2 LAW AND ANALYSIS:

Effective April 5, 2025, Presidential Executive Orders implemented “Reciprocal Tariffs.” See Exec. Order No. 14257, 90 Fed. Reg. 15041 (Apr. 2, 2025); Exec. Order No. 14266, 90 Fed. Reg. 15509 (Apr. 9, 2025); Exec. Order No. 14316, 90 Fed. Reg. 30823 (July 7, 2025). These additional tariffs apply to the imported goods of most countries, including Vietnam. All imported merchandise subject to these Executive Orders must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exemptions to the reciprocal tariffs.

As of the date of this ruling, imports from Vietnam are subject to additional duties under subheading 9903.01.25, HTSUS, which states:

Articles the product of any country, except for products described in headings 9903.01.26–9903.01.33, and except as provided for in heading 9903.01.34, as provided for in subdivision (v) of U.S. note 2 to this subchapter.

Subheading 9903.01.34, HTSUS, which is an exemption from the additional duties, states:

The U.S. content of articles the product of any country, in which the U.S. content of the article provides at least 20 percent of the Customs value of the imported article, as provided for in subdivision (v)(xii) of U.S. note 2 to this subchapter.

Chapter 99, Subchapter III, U.S. Note 2(v)(xii), HTSUS, states:

The additional duties imposed by headings 9903.01.25, 9903.01.35, 9903.01.39, and 9903.01.43-9903.01.76 shall not apply to the U.S. content of an article, provided at least 20% of the customs value, as determined under 19 U.S.C. 1401a, of the product is U.S. originating, consistent with heading 9903.01.34. For greater certainty, with respect to an article for which at least 20% of the customs value is U.S. originating, consistent with 9903.01.34, the additional duties imposed by headings 9903.01.25, 9903.01.35, 9903.01.39, and 9903.01.43-9903.01.76, shall apply only to the non-U.S. content of such article. Heading 9903.01.34 covers only the U.S. content portion of articles described by that heading. The term “U.S. content” refers to the value of an article attributable to the components wholly obtained, produced entirely, or substantially transformed in the United States.

Thus, “U.S. content” refers to the portion of an article’s customs value, determined under 19 U.S.C. § 1401a, attributable to components that are wholly obtained, entirely produced, or substantially transformed in the United States. At least 20 percent of the total customs value must be U.S.-originating for the content to qualify under subheading 9903.01.34, HTSUS. This exemption applies only to the U.S. portion. The remaining non-U.S. content remains subject to duties under subheadings 9903.01.25, 9903.01.35, 9903.01.39, and 9903.01.43-9903.01.76, HTSUS. See Chapter 99, Subchapter III, U.S. Note 2(v)(xii), HTSUS.

3 Here, the certificates of origin certify that the resin was produced in the United States. Based on the bill of materials, the U.S. content for the 1” light filtering PVC cordless mini blinds 23 x 64 priced at $[x] represents 31 percent ($[x]) of the price paid or payable for the mini blind, the non-U.S. content (i.e., [x] and other additives) represents [x] percent ($[x]), and the costs for ladder string and cord, packaging materials, labor and overhead amount to [x] percent ($[x]). The 31 percent U.S. content value ($[x]) exceeds 20 percent of the customs value and may be subtracted from the total price paid or payable for the 1” light filtering PVC cordless mini blinds 23 x 64 listed on the invoice ($[x]). Only the remaining balance of the price paid or payable ($[x]) for the 1” light filtering PVC mini blinds 23 x 64 blinds will be subject to additional duties pursuant to subheading 9903.01.34, HTSUS and Chapter 99, Subchapter III, U.S. Note 2(v)(xii), HTSUS. You can determine the U.S. content for the other sizes of 1” light filtering PVC cordless mini blinds and for the 1” room darkening PVC cordless mini blinds and 2” faux wood PVC cordless mini blinds in the same manner.

HOLDING:

Based on the provided documentation, the U.S.-originating PVC resin represents 31 percent of the customs value of the 1” light filtering PVC cordless mini blinds 23 x 64, which will be imported from Vietnam, and the additional duties imposed by subheading 9903.01.25, HTSUS, will not apply to the U.S. PVC resin consistent with subheading 9903.01.34, HTSUS, and Chapter 99, Subchapter III, U.S. Note 2(v)(xii), HTSUS.

This holding only applies to the specific facts presented. 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by [a U.S. Customs and Border Protection (“CBP”)] field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”

If it is subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R. § 177.9(b)(1), the ruling will be subject to modification or revocation. If there is any change in the facts submitted to CBP, it is recommended that a new ruling request be submitted in accordance with 19 C.F.R. § 177.2.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.

Sincerely,

Monika R. Brenner, Chief
Valuation and Special Programs Branch


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