CLA-2-73:OT:RR:NC:N1:113
Mr. Keith Chan
QHD Inc,
20955 Pathfinder Road
Suite 360
Diamond Bar, CA 91765
RE: The tariff classification and country of origin of iron wire hangers from Mongolia
Dear Mr. Chan:
In your letter dated May 8, 2012, you requested a tariff classification and country of origin ruling. A sample of the subject hanger was submitted with your ruling request.
The item concerned is described as an iron wire hanger, item number 235159. The hanger features a non-swivel hook at the top. In your letter you indicated that the iron wire and coating material are made in China. The wire is packed in bulk rolls and the coating is packed in buckets in China. The iron wire and coating are shipped from China to Mongolia. You stated that the iron wire is cut, trimmed, coated and manufactured into hangers in a factory located in Mongolia. The finished hangers are shipped from Mongolia to the United States. The hangers are sold in their condition as imported into the United States.
As stated in Headquarters Ruling Letter 735009 dated July 30, 1993, “The country of origin is the country where the article last underwent a substantial transformation, that is, processing which results in a change in the article's name, character, or use.” Customs and Border Protection maintains, based on United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (C.A.D. 98) (1940), that “A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, and use that differs from the original material subjected to the processing.”
Regarding the merchandise at issue, the cutting, trimming, coating, shaping, etc. performed in Mongolia constitute a substantial transformation because the resulting product is a new article in which the name changes from wire to hanger. The manufacturing processes performed in Mongolia result in an article which has new name, character and use. Therefore, it is our opinion that the country of origin of the iron wire hangers is Mongolia.
The applicable subheading for the iron wire hangers (item number 235159) will be 7326.20.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of iron or steel, articles of iron or steel wire, garment hangers. The rate of duty will be 3.9 percent ad valorem.
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 on World Wide Web at http://www.usitc.gov/tata/hts/.
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, please contact National Import Specialist Ann Taub at (646) 733-3018.
Sincerely,
Thomas Russo
Director
National Commodity Specialist Division