CLA-2-70:OT:RR:NC:N2:226
Ms. Natalie Christine Krill
Orrefors Kosta Boda
1317 Route 73, Suite 201
Marlton, NJ 08054
RE: The tariff classification, country of origin determination, and marking of glass and wood serving pieces from Germany and Thailand.
Dear Ms. Krill:
In your letter dated July 7, 2016, you requested a tariff classification ruling.
The merchandise under consideration is a Chip and Dip, item number 67 19833; a Cheese Platter, item number 67 19832; a Serving Tray, item number 67 19831; and a Condiment Tray, item number 67 19834.
From the information provided, the Chip and Dip measures approximately 12 inches in diameter by 4 inches high. It consists of an acacia wood bowl fitted with a removable inset soda-lime glass dip bowl.
The Serving Tray measures approximately 15.625 inches long by 10 inches wide by 1.5 inches high. It is comprised of a soda-lime glass tray fitted with acacia wood handles.
The Cheese Platter measures approximately 16 inches in diameter by 1.25 inches high. It is comprised of a soda-lime glass platter fitted with acacia-wood handles and an inset acacia wood cheese board which is designed to be removed and used separately from the glass platter.
The Condiment Tray measures approximately 15 inches long by 8.625 inches wide by 2.25 inches high. It is comprised of a partitioned soda-lime glass tray and three removable square acacia wood bowls.
You state that for all articles, the glass has a linear coefficient of expansion which exceeds 5 x 10-6 per Kelvin within a temperature range of 0°C to 300°C, that it is not pressed and toughened (specially tempered), and is not cut or engraved. All of the articles are designed and used to serve food. The unit value of each item is over five dollars.
The Chip and Dip, the Serving Tray, and the Cheese Platter are composite goods comprised of different materials that are classifiable in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs) taken in order. General Rule of Interpretation (GRI) 3(b) of the HTSUS provides, in relevant part, that composite goods which cannot be classified by reference to GRI 3(a) shall be classified as if they consisted of the material or component which gives them their essential character. The wooden component provides the essential character of the Chip and Dip, while the glass component provides the essential character of the Serving Tray and the Cheese Platter.
The Condiment Tray, which includes a glass serving tray and square wooden bowls, meets the definition of “goods put up in sets for retail sale.” As all components are equally significant during use, this set has no essential character. GRI 3(c) states that when goods cannot be classified by reference to GRI 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. The Condiment Tray will therefore be classified in accordance with GRI 3(c), that which occurs last in the tariff.
The applicable subheading for the Chip and Dip, item number 67 19833, will be 4419.00.8000, HTSUS, which provides for “Tableware and kitchenware, of wood: Other.” The general rate of duty will be 3.2 percent ad valorem.
The applicable subheading for the Serving Tray, item number 67 19831, the Cheese Platter, item number 67 19832, and the Condiment Tray, item number 67 19834, will be 7013.49.6000, HTSUS, which provides for “Glassware of a kind used for table, kitchen, toilet, office, indoor
decoration or similar purposes…: Glassware of a kind used for table (other than drinking
glasses) or kitchen purposes, other than of glass-ceramics: Other: Other: Valued over $3 each: Other: Valued over $5 each.” The general rate of duty will be 7.2 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 https://hts.usitc.gov/current.
You have also asked for a country of origin ruling. Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means 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, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908).
With regards to the Chip and Dip, you state that the wooden bowl is sourced and made entirely in Thailand. The glass bowl is made entirely in Germany and shipped to Thailand to be combined with the wooden bowl. The rules set forth in 19 CFR §102.11(a)(3) state, “Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in §102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.” 19 CFR §102.20(i) requires, in relevant part, a change to any other good of heading 4413 through 4421 from any other heading, including another heading within that group. Because the Chip and Dip remains classified in 4419.00.8000 before and after the addition of the glass bowl, the country of origin of the Chip and Dip is Thailand.
With regards to the Serving Tray, you state that the glass component, which by itself has a unit value of over five dollars, is made entirely in Germany. The glass component is shipped to Thailand where it is assembled with the wooden handles, which are entirely sourced and made in Thailand19 CFR §102.20(l) requires, in relevant part, a change to heading 7013 through 7018 from any other heading, including another heading within that group. Because the Serving Tray remains classified in 7013.49.6000, HTSUS both before and after the addition of the wooden handles, it does not undergo substantial transformation in Thailand. The country of origin of the Serving Tray is therefore Germany.
With regards to the Cheese Platter, you state that the glass component, which by itself has a unit value of over five dollars, is made entirely in Germany and shipped to Thailand. There it is assembled with wooden handles which are entirely sourced and made in Thailand. The wooden-handled glass platter is combined with the wooden cheese board, also entirely sourced and made in Thailand. As above, 19 CFR §102.20(l) requires, in relevant part, a change to heading 7013 through 7018 from any other heading, including another heading within that group. The glass platter does not undergo substantial transformation in Thailand as it classified in 7013.49.6000, HTSUS both before and after the addition of the wood components; therefore, the country of origin of the Cheese Platter is Germany.
With regards to the Condiment Tray, items in a set, although packaged and classified together, do not lose their separate identities. 19 CFR §102.11(c) states, “Where the country of origin cannot be determined under paragraph (a) or (b) of this section and the good is specifically described in the Harmonized System as a set or mixture, or classified as a set, mixture or composite good pursuant to General Rule of Interpretation 3, the country of origin of the good is the country or countries of origin of all materials that merit equal consideration for determining the essential character of the good.”
The information you provided states that the glass tray, which by itself has a unit value over five dollars, is made entirely in Germany. It is then shipped to Thailand where it is packaged with the square wooden bowls, which are sourced and made entirely in Thailand. The country of origin of the glass tray is therefore Germany, while the country of origin of the wooden bowls is Thailand.
You have also asked for a ruling on the marking of this merchandise.
From the information you provided, each set will be individually packaged in a gift box. You have submitted line drawings of the sticker labels which demonstrate the proposed marking of each box. You suggest marking the Chip and Dip “Lead Free Crystal & Acacia Wood Made in Thailand Crystal made in Germany;” the Cheese Platter “Lead Free Crystal & Acacia Wood Made in Germany;” the Serving Tray “Lead Free Crystal & Acacia Wood Made in Germany;” and the Condiment Tray, “Lead Free Crystal & Acacia Wood Made in Germany.”
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 U.S. the English name of the country of origin of the article.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the Chip and Dip, the Cheese Platter, the Serving Tray, and the Condiment Tray is the consumer who purchases the product at retail.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
From the information provided, these articles will always be received by the ultimate purchaser in a gift box packed for retail sale. Thus, the gift boxes for the Condiment Tray set may be marked with the country of origin of each article. However, evidence must be submitted to satisfy the port director at the port of entry that the set will always be received by the ultimate purchaser in this retail container.
The proposed marking of the imported Chip and Dip, Cheese Platter, Serving Tray, and Condiment Tray , as described above, appears to be conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. However, these are not acceptable country of origin markings for the imported merchandise. In addition, based on the specifications you provided, the glass articles at issue would not be considered crystal glass.
The Chip and Dip may be marked “Made in Thailand.” The Cheese Platter and Serving Tray may be marked “Made in Germany.” The Condiment Tray may be marked “Glass tray made in Germany, wooden bowls made in Thailand.”
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 Nicole Sullivan at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division