CLA-2-48:OT:RR:NC:2:230
Mr. Robert D. Stang
Husch Blackwell, LLP
750 17th Street NW
Suite 900
Washington, DC 20006
RE: The country of origin of rolls of coated thermal paper
Dear Mr. Stang:
In your letter, dated August 27, 2015, you requested a binding ruling on behalf of your client, General Paper Company. The request regards the country of origin of rolls of coated thermal paper. Photos and product information were submitted for our review.
You indicate that the coated thermal paper is manufactured in Japan in base rolls measuring 1700mm wide by 18,000m in length. While still in Japan, the base rolls are then cut and re-rolled into jumbo rolls measuring 800mm wide by 6,000 meters in length. The jumbo rolls are shipped to China where they are again cut and re-rolled into finished rolls of sizes and lengths that are ready for use in point of sale applications (e.g., 56mm wide by 26m in length). Both the base thermal paper and the final product weigh 48 grams per square meter; the manufacturing does not alter the paper except in dimension. The finished rolls are imported into the United States in cartons containing 50 rolls each.
As you note, “country of origin” is defined in Title 19, Code of Federal Regulations, Section 134.1(b) (19 CFR 134.1(b)) 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…
Thermal paper is coated with chemicals that change color when exposed to heat. Both the base paper and the finished rolls meet the terms of heading 4811, Harmonized Tariff Schedule of the United States, which provides for Paper, paperboard, cellulose wadding and webs of cellulose fibers, coated, impregnated, covered, surface-colored, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size, other than goods of the kind described in heading 4803, 4809 or 4810. As the cutting and re-rolling do not effect a heading change, this manufacturing does not constitute a substantial transformation. As such, the product emerging from the Chinese manufacturing is not a new and different product from the Japanese jumbo rolls. Both products have identical physical characteristics and uses.
The country of origin of the finished rolls is Japan.
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 Laurel Duvall at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division