CLA-2-64:OT:RR:NC:N2:247
Mr. Paul Vroman L.C.B., C.C.S
Radix Group International dba
DHL Global Forwarding
2660 20th Street
Port Huron, MI 48060
RE: The tariff classification and country of origin of footwear parts from China, Vietnam, and Cambodia
Dear Mr. Vroman:
In your letter dated December 3, 2021, you requested a tariff classification ruling on behalf of The Orvis Company Inc. A sample of a man’s wading boot was submitted with your request. The submitted sample will be returned. You are also requesting a country of origin determination on finished footwear manufactured using Chinese, Vietnamese, and Cambodian parts.
The merchandise under consideration is style number 3CFP, men’s, closed toe/closed heel, above the ankle, below the knee, wading boots. The boots consist of uppers and outer soles made of rubber with EVA midsoles. The boots were manufactured by processes that do not introduce holes and are waterproof.
You suggest classification of 6402.91.9035, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other footwear with outer soles and uppers of rubber or plastics: other footwear: covering the ankle: other: not having uppers of which over 90 percent of the external surface area (including any accessories or reinforcements) is rubber or plastics; footwear not designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather. We disagree. The boots are waterproof and more appropriately classified elsewhere.
The applicable subheading for style 3CFP, men’s waterproof boots, will be 6401.92.9060, HTSUS, which provides for waterproof footwear with outer soles and uppers of rubber or plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes: other footwear: covering the ankle but not covering the knee: other: other: other. The rate of duty will be 37.5 percent ad valorem.
You confirmed via email, the uppers are formed in Cambodia. The outer soles are made in China, and the midsoles are made in Vietnam. The outer soles and midsoles are assembled in Vietnam using an epoxy, then shipped to Cambodia where they will be attached to the uppers. The “country of origin” is defined in 19 CFR 134.1(b) 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 to render such other country the ‘country of origin’ within the meaning of this part.” The courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, dated January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
Based on the information provided, the footwear parts from China, Vietnam, and Cambodia are substantially transformed and assembled into complete and finished footwear in Cambodia. Specifically, the country in which the uppers are formed, giving the shape of the foot, will be the country of origin. In this case, the country of origin is Cambodia.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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.
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 Stacey Kalkines at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division