CLA-2-48:OT:RR:NC:4:434
Mr. Robert Leo
Meeks, Sheppard, Leo and Pillsbury, LLP
570 Lexington Ave.
New York, NY 10022
RE: A country of origin determination of various paper products
Dear Mr. Leo:
In your letter, dated October 31, 2022, you requested a country of origin ruling for the purpose of marking on behalf of your client, Team Three Group Ltd., LLC. on various paper products. A detailed description of the manufacturing operations, values, and photos of the items were submitted for our review.
The finished goods to be imported are Toilet tissue, item 631717; Toilet tissue, item 631783; Paper napkins, item 444326; Paper towels, item 868900; Facial tissues, item 565144.
First, we will address tariff classification.
The applicable subheading for the toilet paper will be 4818.10.0000, HTSUS, which provides for “Toilet paper.” The rate of duty will be Free.
The applicable subheading for the paper towels will be 4818.20.0020, HTSUS, which provides for “Handkerchiefs, cleansing or facial tissues and towels, Towels” (of paper). The rate of duty will be Free.
The applicable subheading for the facial tissues will be 4818.20.0040, HTSUS, which provides for “Handkerchiefs, cleansing or facial tissues and towels, Other.” The rate of duty will be Free.
The applicable subheading for the paper napkins will be 4818.30.0000, HTSUS, which provides for “Tablecloths and table napkins” (of paper). 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.
You also requested a country of origin determination for the purposes of marking. In your letter, you describe a scenario wherein parent rolls of paper made in Indonesia are sent to China, where they will be further manufactured into their final form as described here:
Toilet Tissue: The parent roll is milled utilizing virgin pulp from acacia and balsam/spruce fir wood. The grammage is produced in 13.5-gram to 15-gram weights, the rolls have a 45.24” diameter and 3.0” core. The gram weight is directly related to the chosen “ply” to be produced either 1-ply or 2-ply, and the specification thickness required.
A “parent roll” of tissue measuring 55.12” wide by 656.16’ long will be exported from Indonesia to China. In China, the roll will undergo slitting, which involves cutting the parent roll lengthwise into narrower width strips and rewinding into smaller rolls on cardboard tubes, the finished product being multiple two-ply rolls of tissue measuring 3.5” wide and 1,000’ long.
Napkins: The parent roll is milled utilizing virgin pulp from acacia and balsam/spruce fir wood. The grammage is produced in 12.5-gram to 19-gram weights, the rolls have a 45.24” diameter and 3.0” core. The gram weight is directly related to the chosen “ply” to be produced, specification thickness of the individual item, and if the finished article will have an embossed pattern.
A “parent roll” of napkin stock measuring 29.52” wide by 328.08 long will be exported from Indonesia to China. In China, the napkin paper stock will be “raised dot” pattern embossed and slit to reduce by width, cut to length into sheets, and folded to create the finished “2 Ply, Dinner Napkin,” packaged in sleeves of 250 sheeted interfolded napkins.
Paper Towels: The parent roll is milled utilizing virgin pulp from acacia and balsam/spruce fir wood. The grammage is produced in 38.0-gram & 40-gram weights, the rolls have a 45.24” diameter and 3.0” core. The gram weight is directly related to the chosen “ply” to be produced either 1-ply or 2-ply, specification thickness of the individual item, and if the finished article will have an embossed pattern.
A “parent roll” of tissue measuring 54.72” wide by 328.08’ long will be exported from Indonesia to China. In China, the roll will undergo simple embossing for “raised dot” design, slitting, which involves cutting the parent roll lengthwise into narrower width strips and rewinding into smaller rolls on cardboard tubes, the finished product being multiple one-ply rolls of tissue measuring 7.87” wide and 800’ long.
Facial Tissue: The parent roll is milled utilizing virgin pulp from acacia and balsam/spruce fir wood. The grammage is produced in 12.5-gram & 13.5-gram weights, the rolls have a 45.24” diameter and 3.0” core. The gram weight is directly related to the chosen “ply” to be produced either 1-ply or 2-ply, and specification thickness of the finished articles.
A “parent roll” of tissue measuring 55.12” wide by 328.05 long will be exported from Indonesia to China. In China, the facial tissue paper stock will be slit to reduce by width, cut to length into sheets, and folded to create the finished “2 Ply, Facial Tissue,” packaged in a flat, paperboard box of 100 sheets of interfolded facial tissues.
Section 304 of the Tariff Act of 1930 (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.
Part 134, U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements of 19 U.S.C. § 1304. Title 19, Section 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’ within the meaning of this part; ….” A substantial transformation occurs “when as a result of a process an article emerges, having a distinctive name, character or use” from the original material subjected to the process. Belcrest Linens v. United States, 741 F.2d 1368, 1372 (Fed. Cir. 1984). If the manufacturing process is a minor one, which leaves the identity of the imported article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff’d per curiam, 702 F.2d 1022 (Fed. Cir. 1983).
It can also be informative to research existing Headquarters rulings. HQ W967997 (10/5/06) determined that tissue paper that was printed, cut to size, and folded had not undergone a substantial transformation. H306091 (2/2/20) ruled that a parent roll of paper that was transformed into sticky notes by cutting to size and applying adhesive had not undergone a substantial transformation.
You propose that the country of origin is Indonesia. We agree. The parent rolls of paper from Indonesia are not substantially transformed when embossed, cut to size, and folded to form the finished paper products in China. When imported into the United States, the country of origin of these products for marking purposes will be Indonesia.
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 Charlene Miller [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division