MAR-2 OT:RR:NC:N4: 234
Donald S. Stein
Greenberg Traurig, LLP
Attorneys At Law
210 Street, N.W., Suite 100
Washington, D.C.20037
RE: THE COUNTRY OF ORIGIN MARKING OF BOXES OF TISSUE PAPER.
Dear Mr. Stein:
In your letter dated February 2, 2015, on behalf of Kimberly-Clark Corporation (“KCC”), you requested a ruling concerning the marking of boxes of tissues.
The items in question are boxes of tissues. Jumbo rolls of tissue paper manufactured in the United States will be converted to tissue paper products in Canada, Mexico, China and Korea. You indicated that there are three scenarios that you would like our office to consider.
The country of origin for marking purposes is defined at 134.1(b), Customs Regulations (19 CFR 134.1(b), to mean 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 part 134; however, for a good of a NAFTA Country, the NAFTA Marking Rules will determine the country of origin. A substantial transformation occurs when an article loses its identity and becomes a new article having a new name, character or use.
In the first scenario, U.S. origin jumbo rolls of tissue paper are sent to Canada or Mexico and are converted into boxes of tissues. These finished products are then re-imported back into the United States.
With regard to NAFTA eligibility, HTSUSA General Note 12(t)/48 requires a change to headings 4817 through 4822 from any heading outside that group, except from heading 4823. The manufacturing in Canada or Mexico causes a shift in tariff headings from 4803 to 4818, Harmonized Tariff Schedule of the United States (HTSUS), as such we agree that the country of origin of the boxes of tissue is Canada or Mexico.
In the second scenario, U.S. origin jumbo rolls are sent to Korea and are converted into the finished boxes of tissues. These finished products are then re-imported back into the United States.
With regard to US-Korea FTA rule of origin, HTSUS General Note 33(o)/48 requires a change to headings 4808 through 4823 from any other heading. The manufacturing in Korea causes a shift in tariff headings from 4803 to 4818, Harmonized Tariff Schedule of the United States (HTSUS), which qualifies as a substantial transformation. We agree that the country of origin of the boxes of tissue is Korea.
In the third scenario, U.S. origin jumbo rolls are sent to China and are converted into boxes of tissue. These finished products are then re-imported back into the United States.
In this case, the jumbo rolls from the United States were substantially transformed as a result of the processing in China to create a new article, the boxes of tissues. China is considered to be the country of origin of the boxes of tissues.
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 Albert Gamble at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division