CLA-2-46:OT:RR:NC:4:434
Michael Hollander
Bob Hollander Association
400 W. Main Street Suite 327
Babylon, NY 11702
RE: A classification and country of origin determination of bamboo shades
Dear Mr. Hollander:
In your letter, dated March 22, 2023, you requested a classification and country of origin ruling, for duty purposes, on exterior bamboo shades. A detailed description of the manufacturing operations, material swatches, and photos of the item were submitted for our review.
The item under consideration is the “Bamboo Misty Exterior Roller Shade.” You state that the shades are designed to provide shade and privacy and are generally installed on patios, porches, or windows. The shades are constructed of sheets of very thin, flexible dowels of bamboo. The pieces have been laid side by side and held together at intervals with polyester textile yarns interwoven with the bamboo. Connected to the bottom of the shade is a bottom rail. Also attached are the operating system and mounting brackets. The shades will be produced in three sizes/item numbers: 48” x 72” (BME 4872), 72” x 72” (BME 7272), and 96” x 72” (BME 9672).
The roller shades are composite articles. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs). GRI 3(b) provides that composite goods consisting of different materials or made up of different components shall be classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. The essential character of the roller shade is imparted by the bamboo material. The function of the rails and controls is ancillary to the function of the shade material, which protects a space from sunlight and provides privacy. We note Headquarters ruling H312768 (1/11/22).
The thin, flexible bamboo dowels comprising the bamboo shades that are the focus of this request meet the definition of plaiting materials. Note 1 of Chapter 46, Harmonized Tariff Schedule of the United States (“HTSUS”), states as follows:
“In this chapter the expression "plaiting materials" means materials in a state or form suitable for plaiting, interlacing or similar processes; it includes straw, osier or willow, bamboos, rattans, rushes, reeds, strips of wood, strips of other vegetable material (for example, strips of bark, narrow leaves and raffia or other strips obtained from broad leaves), unspun natural textile fibers, monofilament and strip and the like of plastics and strips of paper, but not strips of leather or composition leather or of felt or nonwovens, human hair, horsehair, textile rovings or yarns, or monofilament and strip and the like of chapter 54.”
The bamboo dowels also meet the definition of “wickerwork.” CBP has consistently held that wickerwork is comprised of materials such as rods or twigs, with rounded cross-sections; see Headquarters ruling H263914 (8/1/16).
Therefore, the applicable subheading for the bamboo shades will be 4602.11.3500, HTSUS, which provides for “Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601…Of vegetable materials: Of bamboo: Other: Wickerwork:” 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 further inquire about the country of origin for the finished shades. Per your submission, the component materials undergo the following processes in China and then Vietnam:
China:
Stock of bamboo materials is sourced, spliced, cut to length, boiled, and dried
Bamboo sticks are carbonized (for coloration)
Bamboo strips are woven with China-made polyester yarn to form panels
Bamboo panels are rolled for shipment to Vietnam
Vietnam:
Wand, wand control, connector, booster universal, booster decelerator, limiter, aluminum tube, mounting brackets, bracket covers, and bottom rail are manufactured
Bamboo panels are cut to pre-determined size
All components are assembled to form finished shades
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; ….” 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). This case specifically addressed whether substantial transformation occurred when a shoe upper was joined to a shoe outsole. The court held that an upper was not substantially transformed when attached to an outsole to form a shoe and that the upper was "the very essence of the completed shoe".”
You propose that the country of origin is Vietnam. However, in Vietnam the assembly operations are relatively minimal or simple and do not substantially alter the identity of the bamboo panel produced in China. Like the shoe upper in the above cited example, the bamboo panel is the primary necessary component of the finished product, the portion of the window shade capable of blocking sunlight and providing privacy. Attaching the bottom rail and other incidental parts in Vietnam does not constitute a substantial transformation. We also note that, per your weight and cost sheet, the bamboo panels predominate by weight and value over any other single component.
The country of origin of the finished bamboo shades will be China, the country in which the primary necessary portion of the shade was manufactured.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4602.11.3500, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, 9903.88.03, in addition to subheading 4602.11.3500, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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]. PASTE THE ENTIRE RULING TEXT STARTING WITH CLA-2-##:OT:RR:NC:N#:NIS# ON THIS LINE*****
***** DO NOT PASTE THE RULING # AT TOP OR THE SIGNATURE PORTION AT THE BOTTOM *****
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division