CLA-2-39:OT:RR:NC:N1:137
Paul Fitzpatrick
MIQ Logistics
8550 W. Bryan Mawr Avenue, Suite 400
Chicago, IL 60631
RE: The tariff classification of hoses from Vietnam and Taiwan
Dear Mr. Fitzpatrick:
In your letter dated August 1, 2019 you requested a tariff classification ruling, on behalf of your client, EZ-FLO International, Inc.
The subject of this request are hoses used to connect a variety of appliances (e.g. washing machines, dishwashers, and ice makers) to water sources. The hoses undergo two manufacturing phases.
The first manufacturing phase takes place in either Vietnam or Taiwan. The hoses are extruded from white polyvinyl chloride (PVC), braided with polyester reinforcement, and coated with clear PVC resin. They are then spooled onto rolls for shipment and further processing.
The second manufacturing phase takes place in China. The rolls of hose are shipped to China where they are reinforced with by braiding AISI 304 stainless steel or a polymer material in lieu of stainless steel around the hoses. The hoses will also be cut to length ranging from 9 inches to 14 feet, fittings are attached and they are packed for shipment.
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. Part 134, Customs Regulations (19 CFR 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. 304. The term "country of origin" is defined in 134.1(b), Customs Regulations (19 CFR 134.1(b)), as the "country of manufacture, production, or growth of any article of foreign origin entering the U.S." 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 this part. A substantial transformation occurs when articles lose their identity and become new articles having a new name, character and use. United States v. Gibson-Thomsen Co., 27 CCPA 267, 270 (1940); National Juice Products Association v. United States, 10 CIT 48 (1960); Koru North America v. United States, 701 F.Supp. 229 (CIT 1988).
In this case, the reinforcement with braided materials, cutting to length, and the addition of the Chinese fittings does not substantially transform the hose. Therefore, the country of origin of the finished hose with fittings is considered to be either Vietnam or Taiwan. See ruling NY N211518 dated April 25, 2012 and NY N195078 dated December 15, 2011.
The applicable subheading for the hose reinforced with braided stainless steel will be 3917.39.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Tubes, pipes, and hoses and fittings therefor (for example, joints, elbows, flanges), of plastics: Other tubes, pipes and hoses: Other: Reinforced with metal. The general rate of duty will be 3.1 percent ad valorem.
The applicable subheading for the hose reinforced with braided polymer will be 3917.39.0020, HTSUS, which provides for Tubes, pipes, and hoses and fittings therefor (for example, joints, elbows, flanges), of plastics: Other tubes, pipes and hoses: Other: Other: Of polyvinyl chloride. The general rate of duty will be 3.1 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 the World Wide Web at https://hts.usitc.gov/current.
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 Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division