MAR-2 OT:RR:NC:N3:140
Ms. Kayla Owens
Stein, Shostak, Shostak, Pollack & O'Hara
865 S. Figueroa Street, Suite 1388
Los Angeles, CA 90017
RE: The country of origin of cosmetic products from South Korea
Dear Ms. Owens:
This is in response to your letter, received by our office on February 06, 2019, on behalf of Elegant Best Investment Limited (‘Elegant Best”), requesting a ruling on the country of origin of four cosmetic products. All products are indicated to be made in South Korea and then placed into individual containers and retail packaged in China. Representative samples were not included with your request.
The four items under review are as follows:
Item 1
Pressed cosmetic powder
Item 2
Lipstick
Item 3
Mascara, lip gloss and eyeliner
Item 4
Eyebrow pencils
First, we note that a product and issue similar to the eyebrow pencils (Item 4) included in this request is currently before our Headquarters Office. We cannot address the issue of Origin and Marking for that product pending a completion by ORR-HQ. This ruling will not apply to the Eyebrow pencils.
You indicate that you are requesting a ruling from our office on the country of origin of various cosmetics products that are manufactured in South Korea. These products are put into final form and into retail containers in China before exportation to the United States.
You provided the following summary of the production process:
Processing in Korea:
There are four different types of processes that occur in Korea, depending on the type of cosmetic being made. They are:
(1) Processing for pressed (cosmetic) powder; (2) hot filling process for lipsticks; (3) filling process for mascara, lip gloss, and tank eyeliner; and (4) extruded technical processing for eyebrow pencils.
Under all four processing techniques, bulk raw materials of Korean origin are weighed and stored in Korea. They are then “mixed and prepared” before being put into bulk storage in Korea for shipping to China.
Packaging in China:
Pressed Powder: The mixed and prepared powder in bulk storage is shipped from Korea to China. No additional ingredients are added to the product in China. There, the powder is filled and pressed into aluminum containers. Those containers are then glued into plastic compacts for retail packaging.
Hot Filling: The mixed and prepared lipstick in bulk storage is shipped from Korea to China. No additional ingredients are added to the product in China. There, a warm mold is filled with the bulk material and then cooled. After the lipstick has cooled, it is released from the mold. After inspection, it is packed, labeled and packaged for exportation.
You suggest that the processing in China is similar to the process described in NY N301371. In that ruling, Customs determined that bulk lipstick mass of U.S. origin that was shipped to China for processing into retail packages (through heating and pouring into individual lipstick tubes) did not undergo a substantial transformation; therefore, the lipstick remained a product of the United States.
Filling: Mascara, lip gloss, and tank eyeliner undergo this process in China. The mixed and prepared products are shipped in bulk from Korea to China. No additional ingredients are added to the products in China. The mascara and lip gloss are filled into bottles, and then the caps are placed and screwed on the bottles. The bottles are then packaged, labeled and put into cartons for shipping. Essentially the same process occurs for the eyeliner. You cite several existing rulings in support of your opinion (NY J86656, N301371 and NY N036535).
You state your opinion that:
“Based on our review of the processes that occur in Korea and China, as well as previous Customs rulings cited herein, we think that the country of origin for all of these products is Korea.”
The "country of origin" is defined in 19 CFR 134.1(b) 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 this part. Among the metrics used to define “substantial transformation” are a change to the merchandise which creates a product with a new name, character and use.
With respect to the 1) Pressed powder; 2) Lipstick, 3) Mascara, 4) lip gloss and 5) eyeliner; we agree that the processing and packaging in China in each instance above does not result in a new product having a distinctive name, character and use. Therefore, in our opinion, we agree that the goods remain a product of South Korea.
This ruling is being issued under the provisions of Part 177 of the Customs 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 Paul Hodgkiss at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division