MAR-2 OT:RR:NC:N4:433
Ray Knott
International Manager
Mode Transportation
100 Stewart Lane
Chalfont, PA 18914
RE: COUNTRY OF ORIGIN AND MARKING OF IMPORTED CHAISE LOUNGE UPPERS FROM CHINA TO BE ASSEMBLED TO UNITED STATES BASES
Dear Mr. Knott:
This is in response to your letter received by the National Import Specialist Division on November 14, 2011, requesting a ruling on the country of origin marking requirements for imported “lounge uppers” which are assembled to United States (U.S.) bases in the U.S. A marked sample was submitted with your letter for review. Additionally, we will review the classification of completed lounges if manufactured entirely in China.
Item 1 is described as the “Java” all weather wicker chaise lounge. The base is composed of molded plastic made in the U.S. The lounge upper is an aluminum frame covered with Viro® (polyethylene fiber material) made in China. Viro® is considered a plastic material. The plastic toes on the bottom of the chair legs are made in France. The bill of materials furnished with this item indicates that the aluminum frame covered in synthetic wicker from China cost substantially more than the plastic molded base manufactured in the U.S., with insignificant differences between the weights of the base versus the upper section of the lounge. Some of the features of the chaise lounge are: (1) stylish 4-position adjustable chaise lounge; (2) high strength resin wicker frame, specifically woven to perform in commercial outdoor environments; (3) easily replaceable wicker frame; and (4) Viro branded fiber is highly flexible for comfort and resistant to color fading, cracking, peeling and breaking. This item passes the ASTM F 1988-99 Class B performance standards for commercial use.
Item 2 is described as the “Calypso” adjustable sling chaise lounge. The base is composed of molded plastic made in the U.S. The lounge upper is an aluminum frame covered with Textilene® (man-made polyester with a PVC coating) made in China. Textilene® is considered a plastic material. The plastic toes on the bottom of the chair legs are made in France. The bill of materials furnished with this item indicates that the aluminum frame covered in synthetic wicker from China cost more than the plastic molded base manufactured in the U.S., with the base being approximately 4-pounds heavier than the upper section of the lounge. Some of the features of the chaise lounge are: (1) stylish 4-position adjustable sling chaise lounge; (2) highly durable, mildew, stain and fade resistant PVC coated polyester fabric, specifically woven to perform in commercial outdoor environments; (3) easily replaceable wicker frame; and (4) breathable power washable fabric for ease of maintenance. This item passes the ASTM F 1988-99 Class B performance standards for commercial use.
Item 3 is described as the Bali Sunlounger. The base is composed of molded plastic made in the U.S. The lounge upper is an aluminum frame covered with Textilene® (man-made polyester with a PVC coating) made in China. Textilene® is considered a plastic material. The plastic toes on the bottom of the chair legs are made in France. The bill of materials furnished with this item indicates that the aluminum frame covered in synthetic wicker from China cost more than the plastic molded base manufactured in the U.S., with the base being approximately 4-pounds heavier than the upper section of the lounge. Some of the features of the chaise lounge are: (1) the most relaxing sling chaise lounge with eight unique adjustable (back and footrest) positions; (2) high strength breathable fabric, specifically woven to perform in commercial outdoor environments; (3) easily replaceable wicker frame; and (4) breathable power washable fabric for ease of maintenance. This item passes the ASTM F 1988-99 Class B performance standards for commercial use.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) 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, Customs Regulation (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
Stipulated in 19 CFR 134.1 (b), “country of origin” is defined 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; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.” For tariff purposes, the courts have held that a substantial transformation occurs if a new and different article emerges having a distinctive name, character or use. Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
In this case, the assembly process does not result in a substantial transformation, in that, the Chinese assembled lounge uppers attached to U.S. bases are simple assembly operations in the completion of lounges; the lounge uppers provide for the functionality and use of the lounges; the lounge uppers are core subassemblies in the manufacturing process of the lounges, as they provide the surface upon which a person can rest and relax upon; and the processing cost performed in the U.S. is less costly and time consuming than the foreign manufacturing process. Additionally, the lounge uppers are available in a variety of synthetic wicker styles and patterns, which can be easily removed and changed to provide the lounges with a fresh appearance or brand-new look. As such, the country of origin is China, and as indicated in Company provided documentation “Made in China assembled in the USA” is an acceptable marking designation – see Headquarters Ruling Letter HQ 735275 dated October 12, 1993.
Based on the information provided, we disagree with the classification of subheading 9401.80.4026 for the finished chaise lounges. We need additional information to provide you a definitive classification ruling. For the three lounges identified for outdoor commercial use, provide documentation or a declaration on the nature of the plastic, addressing whether reinforced or laminated plastic is used in the manufacture of the bases and lounge uppers.
This ruling is being issued under the provisions of Part 177 of the Customs 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 Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division