MAR-2-OT:RR:NC:N3:351
Mr. Colin Chipman
Hampton Products International Corporation
50 Icon
Foothill Ranch, CA 92610
RE: Country of origin and marking determination of bungee cords; 19 CFR 102.21(c)(2); tariff shift
Dear Mr. Chipman:
This is in reply to your letter dated September 26, 2020, requesting a country of origin and marking determination for imported bungee cords. In lieu of samples, photographs of the bungee cords were provided with your request.
FACTS:
At issue are three bungee cords, identified as item numbers 06018, 06022, and 06051.
Item 06018, described as a “bungee cord,” is designed to bundle items together or secure objects. The bungee cord is composed of braided nylon sheath over a long “ribbon” elastic rubber core and each end is equipped with a vinyl coated steel hook. The black and white checkered bungee cord measures approximately 18 inches in length in its relaxed condition.
Item 06022, described as a “bungee cord,” is designed to bundle items together or secure objects. The bungee cord is composed of braided nylon sheath over a long “ribbon” of elastic rubber core and each end is equipped with plastic hooks with steel reinforcements. The solid yellow bungee cord measures approximately 24 inches in length in its relaxed condition.
Item 06051, described as a “bungee cord,” is designed to bundle items together or secure objects. The bungee cord is composed of braided nylon sheath over a long “ribbon” elastic rubber core and each end is equipped with steel hooks. The black and yellow checkered bungee cord measures approximately 10 inches in length in its relaxed condition.
You state that the bungee cords, items 06018, 06022, and 06051, are currently entered into the United States under subheading 5609.00.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of yarn, strip or the like of heading 5404 or 5405, twine, cordage, rope or cables, not elsewhere specified or included. Other.” The rate of duty is 3.9 percent ad valorem. This office agrees with your classification.
You state the current manufacturing operations of the bungee cords are as follows:
China:
- Nylon filament yarn is extruded and spooled.
- Natural rubber is extruded or will be cut from sheets and spooled.
- Steel or plastic hooks are produced.
- Nylon yarn is braided over the rubber core.
- Braided yarn with a rubber core is cut to specified size.
- Ends of the cut cord are attached to the steel or plastic hooks.
- Bungee cords are packed and exported to the United States.
You state that you are considering changing your current supply chain and manufacturing process of the bungee cords as follows:
South Korea:
Nylon filament is extruded and spooled.
Nylon yarn is shipped to China.
China:
Natural rubber is extruded and spooled.
Steel or plastic hooks are produced.
Nylon yarn is braided over the rubber core.
Braided yarn with a rubber core is cut to specified size.
Ends of the cut cord are attached to the steel or plastic hooks.
Bungee cords are packed and exported to the United States.
ISSUE:
What is the country of origin and is the proposed marking, “Made in China with Thread from South Korea” acceptable for the imported bungee cords?
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:” Paragraph (e) in pertinent part states,
The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:
5609.00 (1) If of continuous filaments, including strips, the country of origin of a good classifiable under heading 5609 is the country, territory, or insular possession in which those filaments, including strips, were extruded.
As the nylon filament yarn is extruded in a single country, that is, South Korea, as per the terms of the tariff shift requirement, country of origin is conferred in South Korea.
MARKING:
The marking statute, section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin 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. Congressional intent in enacting 19 U.S.C. 1304 was that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940).
However, if reference is made to another country or locality other than the actual country of origin, the requirements of 19 CFR 134.46 must be met. 19 CFR 134.46 provides that in any case in which the words "U.S." or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or locality in the U.S., or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced, appear on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," "Product of" or other words of similar meaning.
In this case, you propose to mark the bungee cords “Made in China with Thread from South Korea”. The ultimate purchaser reading the phrase “Made in China,” could only determine that the bungee cords were “Made in China.” The proposed marking would be providing the ultimate purchaser with false information. As indicated above, pursuant to 19 CFR 102.21, the country of origin of the bungee cords is South Korea. Applying the general country of origin marking requirements, any acceptable marking of the bungee cords must clearly indicate that South Korea is the country of origin. Thus, the bungee cords may properly be marked “Made in South Korea,” “Manufactured in South Korea,” or “Product of South Korea.” If, however, any reference is made to the processing performed in China, the requirements of 19 CFR 134.46 must be satisfied and the country of origin must be preceded by “Made in,” “Product of,” or other word of similar meaning. Thus, inasmuch as the proposed marking does not set forth the correct country of origin for the subject merchandise, the proposed marking is unacceptable, as the requirements of 19 U.S.C. 1304 and 19 CFR Part 134 have not been met.
HOLDING:
The bungee cords are properly classified under subheading 5609.00.4000, HTSUS. The country of origin is South Korea. On the basis of the information submitted, we find that the country of origin marking, “Made in China with Thread from South Korea,” does not satisfy the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46.
The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.
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 Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division