CLA-2-94:OT:RR:NC:N4:433
Johnny Su
PNP Corporation Ltd.
7F., No. 95, Zhongcheng Road, Tucheng Dist.,
New Taipei, 23674
Taiwan
RE: The tariff classification and country of origin of chairs.
Dear Mr. Su:
In your letter dated October 31, 2019, you requested a country of origin ruling seeking confirmation that the articles identified below are country of origin Thailand. Illustrative literature, product descriptions, and manufacturing processes were provided for review.
The chairs subject of this ruling request are constructed of foreign and domestically sourced raw materials. Descriptions of the items immediately follows:
The Vertagear SL2000, is a series of manual gas lift, variable height adjustment, 80 to 150 degree tilting and locking, ergonomic swivel chairs constructed of metal frames with swivel mechanisms, and each having five wheeled 2.5” casters. Each SL2000 Vertagear swivel chair contains a polyvinyl chloride (PVC) leather upholstered backrest and seat base over high-density memory foam cushioning. The chairs are manufactured in a variety of colors, are packaged unassembled for retail sale, and contain all hardware required for assembly.
The Vertagear PL4500, is a series of manual gas lift, variable height adjustment, up to 130 degree tilting and locking, ergonomic swivel chairs constructed of metal frames with swivel mechanisms, and each having five wheeled 2.5” casters. Each PL4500 Vertagear swivel chair contains a PVC leather upholstered backrest and seat base over high-density memory foam cushioning. The chairs are manufactured in a variety of colors, are packaged unassembled for retail sale, and contain all hardware required for assembly.
The Vertagear PL6000, is a series of manual gas lift, variable height adjustment, five (5)-position tilting and locking, ergonomic swivel chairs constructed of metal frames with swivel mechanisms, and each having five wheeled 3.5” casters. Each PL6000 Vertagear swivel chair contains a PVC leather upholstered backrest and seat base over high-density memory foam cushioning. The chairs are manufactured in a variety of colors, are packaged unassembled for retail sale, and contain all hardware required for assembly.
You request classification of the SL2000, PL4500, and the PL6000 series chairs in subheading 9401.30, Harmonized Tariff Schedule of the United States, (HTSUS).
The applicable subheading for the subject merchandise will be 9401.30.8030, HTSUS, which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Swivel seats with variable height adjustment: Other: Other.” The rate of duty will be free.
Per your submission, the SL2000, PL4500, and the PL6000 manufacturing materials include the following: pillow covers, headrest pillow covers, plastic eyes, backrest covers, PVC leather covers, armrests, seat covers, seat cover parts (left and right sides), seat lift mechanisms, gas lift mechanisms, 5–star swivel bases, casters, and assembly hardware component materials sourced from China. The component materials are shipped and exported to Thailand. In Thailand, manufacturing component materials include: memory foam for the chair’s headrest, backrest, lumbar support and seat, the chairs backrest and seat base metal frames, and packaging cartons are locally sourced. In Thailand, the individual components and materials are assembled. Assembly of the SL2000, PL4500, and the PL6000 chair components occur in Thailand as follows:
Step one (1), the headrests are formed by assembling the pillow covers and memory foams.
Step two (2), the bending and welding of iron occurs to make the chairs metal frame backrests. The metal frame backrests are then assembled onto the molded foam, plastic molds, and fabric.
Step three (3), the lumbar supports are formed by assembling the pillow covers and memory foams.
Step four (4), the bending and welding of iron occurs to make the seat bases. The metal frame seat bases are then assembled onto the molded foam, plastic molds, fabric, and the armrests.
Step five (5), in Thailand, the completed headrests, backrests, lumbar supports, seats, lift mechanisms, gas lifts, 5-star swivel bases, casters and assembly hardware components are packaged together for exported to the United States. Illustrations of the assembly processes were provided.
COUNTRY OF ORIGIN
Section 134.1(b), Customs Regulations (19 CFR 134.1(b)) defines “country of origin” 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.” A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use.
A “complex or meaningful” assembly operation may result in a substantial transformation while a “minimal, simple, assembly-type operation” ordinarily will not. The term “simple assembly” is defined in 19 CFR 102.1(o) as “the fitting together of five or fewer parts all of which are foreign (excluding fasteners such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or by other means without more than minor processing.”
In the instant case, the foreign Chinese components and the domestic Thailand material components lose their identity during manufacture and assembly in Thailand and undergo a substantial transformation, thereby, taking on a new name, character, and identity. The bending, welding, mold foaming, and chemical foaming of the seat frame and foam cushioning in Thailand are not simple manufacturing operations. In view of these facts, the country of origin for the SL2000, PL4500, and the PL6000 chairs are conferred in Thailand.
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).
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 CFR 177.9(b)(1). In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and you should resubmit for a new ruling in accordance with 19 CFR 177.2.
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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division