CLA-2-49:OT:RR:NC:N4:434
Albert Hazan
Edge Home
48 W. 37th Street
New York, NY 10018
RE: The tariff classification and country of origin of artwork printed in Mexico
Dear Mr. Hazan:
In your letter, dated December 13, 2021, you requested a tariff classification and country of origin ruling on printed artwork. Photos and a product description were provided for our review.
The artwork sample shown in your submission depicts a small girl seated by the shore with the ocean and sunset in the background. The picture is digitally printed onto canvas that has subsequently been stretched onto wood stretcher bars. The finished works will range in size from 10” x 13.5” up to 30” x 40”.
You propose classification in subheading 4911.91.4040, Harmonized Tariff Schedule of the United States (HTSUS). We agree.
The applicable subheading for the artworks will be 4911.91.4040, HTSUS, which provides for “Other printed matter… Other pictures, designs and photographs: Printed not over 20 years at the time of importation: Other; Other; Other. The rate of duty will be Free.
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.
Please note that modifications to the HTSUS (to align the HTSUS with the 2022 version of the Harmonized Commodity Description and Coding System) pursuant to Section 1206 of the Omnibus Trade and Competitiveness Act of 1988 are forthcoming. These modifications, made by Presidential Proclamation 10326 and set forth in Annexes I, II.A, and II.B of U.S. International Trade Commission Publication 5240, will be effective on January 27, 2022. To the extent that the modifications to the HTSUS impact the classification of the merchandise subject to this ruling, you may submit a new ruling request at that time.
In your submission you also request a country of origin determination for the printed artwork. Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that: “Country of origin" means 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; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter will determine the country of origin:
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. Applied in sequential order, the required hierarchy establishes that:
(a) The country of origin of a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other requirements of these rules are satisfied.
Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because the artwork is neither wholly obtained nor produced exclusively from “domestic” (Mexico, in this case) materials. Accordingly, we look to section 102.11(a)(3). The applicable tariff shift requirement in section 102.20 for the art prints of heading 4911 reads, there must be “(a) change to heading 49.01 through 49.11 from any other chapter.”
You describe a scenario wherein roll of 100% polyester canvas fabric measuring 1.5 meters wide by 100 meters in length are manufactured in China. The canvas is coated on one side with a polyester coating. After importation into Mexico, the rolls will be digitally printed with various scenes, cut to size, then stretched and stapled onto wooden stretcher bars ready for retail sale.
Under these circumstances the tariff shift rule noted above is met. Depending on the nature of the coating, the China-origin canvas is an article of either chapter 39 or chapter 59, HTSUS, and is changed in Mexico into a printed article of chapter 49. We therefore find the country of origin of the printed artwork to be Mexico. 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 Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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, contact National Import Specialist Charlene Miller at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division