MAR-2-32:OT:RR:NC:N3:136
Benjamin F. DeFazio
B.F. DeFazio Customs Broker
99 W. Hawthorne Avenue, Suite 612
Valley Stream, NY 11580
RE: Country of origin and classification of “Lionel Blue ES”
Dear Mr. DeFazio:
In your ruling request dated August 19, 2019, on behalf of your client, Toyo Ink America, LLC,
you requested a country of origin and classification ruling on “Lionel Blue ES.”
You describe the subject product as a colorant, which is produced in Japan, incorporating various raw materials from China and Japan. You describe the raw material from China as “Pigment A,” which comprises 32.43% of the FOB value, and the raw materials from Japan as “Diethylene Glycol, Salt, Sulphuric Acid, Rosin, and Calcium Chloride.” The production process consists of the following steps:
Kneading: (Solvent Salt Milling). Crude Pigment A, Salt, Polyol
Milling: (Hammer Mill)
Reslurry & Acid Treatment
Filtration & Iron Removal
Drying & Packaging
In 19 C.F.R. § 134.1(b), “country of origin” is defined as “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 this part.”
With respect to the subject product, we have determined that the production process in Japan using raw materials from China and Japan, does not result in a substantial transformation of the primary pigment material of Chinese origin. Therefore, in our opinion, the country of origin for the subject product is China.
The applicable subheading for “Lionel Blue ES” will be 3204.17.9086, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Synthetic organic coloring matter, whether or not chemically defined; preparations as specified in note 3 to this chapter based on synthetic organic coloring matter; synthetic organic products of a kind used as fluorescent brightening agents or as luminophores, whether or not chemically defined: Synthetic organic coloring matter and preparations based thereon as specified in note 3 to this chapter: Pigments and preparations based thereon: Other: Other: Other.” The general rate of duty will be 6.5 percent ad valorem.
Products of China classified under subheading 3204.17.9086, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 3204.17.9086, HTSUS, listed above. See U.S. Note 20 to Subchapter III, Chapter 99, HTSUS.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the Section 301 trade remedy, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency. Information on the TSCA can be obtained by contacting the EPA at 1200 Pennsylvania Avenue, N.W., Mail Code 70480, Washington, D.C., by telephone at (202) 554-1404, or by visiting their website at www.epa.gov.
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 Nuccio Fera at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division