OT:RR:NC:N4:463
Maureen Sharma
Mullally International Inc.
1305 Republican Street
Seattle, WA 98109
RE: The country of origin of a plant dolly
Dear Ms. Sharma:
This ruling is being issued in reply to your letter dated March 25, 2024, requesting the country of origin for a planter caddy. In lieu of a sample, illustrative literature and a product description were provided.
The item, identified as a planter caddy, style number MI25-PC2M, is a circular platform on wheels designed to move and display potted plants. It measures 15" in diameter and 3" in height and sits atop four swivel casters. The platform is made of cold-rolled sheet steel with its outermost edge rolled down and with multiple cutouts emanating from the center in the form of a flower petal or another geometric design. The platform sits atop four metal swivel casters with plastic treads, two of which have locking brakes. A circular piece of square steel tubing is welded to the underside of the platform just inside the downturned lip to give strength and a place to mount the casters. The planter caddy is powder coated, has a maximum capacity of 250 lbs., and weighs approximately 3.7 lbs. It will be sold through big box stores in two packs. See image below.
CHINA/VIETNAM
. Casters are made in China and shipped to Cambodia.
. Four nuts are made in Vietnam and shipped to Cambodia.
CAMBODIA
The rolled-steel sheeting, square tubing, nuts, and castors are processed, as follows:
. Steel sheet is laser cut, ground, polished, and the lip is bent to form the top plate.
. The square tube is cut and bent into a circle.
. Top plate and circular square tubing are welded together.
. Nuts are welded onto the bottom of the top plate.
. Edges and excess welding materials are ground off.
. Top plate and tube frame assembly undergo a chemical wash.
. Top plate and tube frame assembly are powder coated.
. Castors are attached to the top plate and tube frame.
. Finished plant dollies are inspected and packaged.
Although classification was not requested, we note that this article is essentially similar to the plant dolly in NYRL N333922, July 13, 2023, which was classified in subheading 9403.20.0090, Harmonized Tariff Schedule of the United States (HTSUS). See HQRL H271854 and NYRLs N333922, N087856 and 895256.
COUNTRY OF ORIGIN
Section 134.1(b), Customs Regulations (19 CFR 134.1(b)) defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. 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." A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use.
Generally, the U.S. Court of International Trade has determined whether a substantial transformation has occurred by asking whether the manufacturing or processing substantially transformed the foreign materials in question into an article having a name, character or use different from the name, character, or use of those materials before such processing.
Under the CBP laws, if the article consists of materials produced, derived from, or processed in more than one country, it is considered a product of the country where it last underwent a "substantial transformation." According to U.S. courts, a substantial transformation occurs when articles lose their identity as such and become new articles having a new "name, character or use."
In order to determine whether a substantial transformation has occurred, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. CBP has stated that a new and different article of commerce is an article that has undergone a change in commercial designation or identity, fundamental character, or commercial use. A determinative issue is the extent of the operations performed and whether the materials lose their identity and become an integral part of the new article.
The requester asserts that the manufacturing operations to which the Chinese and Vietnamese materials are subjected result in the creation of a new article with a new name, character and use, and that the processing performed in Cambodia are substantial and not minimal assembly operations. We agree. The Chinese and Vietnamese steel sheet, rectangular tubing, nuts, and casters are substantially transformed by the aforementioned manufacturing operations in Cambodia into a plant dolly, an article with a new name, character and use. Based upon the foregoing, the country of origin of the planter caddy, style number MI25-PC2M, is Cambodia.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is 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. If the facts are modified in any way, or if the goods do not conform to these facts at the 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. Additionally, we note 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 Title 19 of the Code of Federal Regulations (19 CFR Part 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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division