CLA-2-38:OT:RR:NC:2:239
April J. Collier, LCB, CCS
Pacific Customs Brokers Inc.
1400 A Street
Blaine, WA 98230
RE: The tariff classification, country of origin marking of PROLOFT®, and the applicability of subheading 9801.00.8000, HTSUS
Dear Ms. Collier:
In your letter dated August 21, 2015, on behalf of Advanced Insolutions Inc., you requested a tariff classification, country of origin marking ruling, as well as the applicability of subheading 9801.00.8000, Harmonized Tariff Schedule of the United States (HTSUS), regarding American Goods Returned. A representative sample was included with your ruling request and will be returned.
PROLOFT® is a thermal barrier strip designed to provide insulation to buildings. The composition of the product is a mixture of Silica, Polyethylene terephthalate, Fibrous glass, Calcium silicate, and Synthetic graphite. You state the insulating factor is the silica material which is embedded in the fiberglass matrix.
You state that the product is manufactured into rolls in the United States while the final production processes of PROLOFT® occur in Canada. This process consists of cutting the rolls of insulation into strips, rebranding them as PROLOFT®, and packaging the final product for the ultimate user.
Although you suggest classification of PROLOFT® under tariff subheading 7019.39.1090, HTSUS, we do not agree. PROLOFT® is a composite good within the meaning of General Rule of Interpretation (GRI) 3(b) and the fiberglass component does not provide the essential character of this item.
The applicable subheading for PROLOFT® will be 3824.90.2800, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included: Other: Other: Mixtures containing 5 percent or more by weight of one or more aromatic or modified aromatic substances: Other. The rate of duty will be 6.5 percent ad valorem.
You also requested applicability of subheading 9801.00.8000, HTSUS, which provides for the free entry of products of the United States that are exported and returned without having been advanced in value or improved in condition by any process of manufacture or other means while manufactured aboard. In United States v. John V. Carr & Sons. Inc., 69 Cust. Ct. 78, C.D. 4377, 347 F.Supp. 1390 (1972, 61 CCPA 52, C.A.D. 1118, 496 F.2d 1225 (1974), the court stated that, absent some alteration or change in the item itself, the mere repackaging of the item, even for the purpose of resale to the ultimate consumer, is not sufficient to preclude the merchandise from being classified in subheading 9801.00.8000, HTSUS. Thus, we find that the operations performed in Canada, specifically, the cutting, repackaging, and rebranding, does not result in an advancement in value or improvement in condition. If the documentary requirements of 19 C.F.R. §10.1 are satisfied, the applicable subheading for the PROLOFT® will be 9801.00.8000, HTSUS, which provides for Articles previously exported from the United States which--except for U.S. note 1 of this subchapter--would qualify for free entry under one of the foregoing items and are not otherwise free of duty: Other, except articles excluded by U.S. note 1(c) of this subchapter. Products classified in subheading 9801.00.8000, HTSUS, are free of duty.
Additionally, you requested for the country of origin marking requirements concerning PROLOFT® when returned to the United States after cutting, repacking, and rebranding in Canada. Since PROLOFT®, qualifies as a product of the United States exported and returned, it is excepted from marking requirements pursuant to Customs Regulations (19 CFR 134.32(m)).
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 United States the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country or origin marking requirements and exceptions of 19 U.S.C. 1304. Since PROLOFT®, is considered to be a good of the United States, it is also not subject to the marking requirements of 19 U.S.C. 1304.
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, contact National Import Specialist Patrick Day at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division