CLA-2-39:OT:RR:NC:N4:422

Mr. Steven J Hollinger
S. H. Pierce & Co.
21 Wormwood St. #215
Boston, MA 02210

RE: The tariff classification of a plastic S-shaped clip from China

Dear Mr. Hollinger:

In your letter dated November 9, 2015, you requested a tariff classification ruling.

The submitted illustration depicts an item that is identified as a Clip. This item is made of polyamide (PA) plastic material and is molded in the shape of the letter “S”. After importation, the Clip will be attached to one end of a bungee cable that is assembled with a battery powered portable deck and stern light. The cord will be pinched into one side of the Clip and the entire portable deck and stern light assembly, including the Clip, will then be packaged for retail sale in a polybag with a stapled header card. The Clip end of this assembly is designed to attach the assembly to a kayak but can also attach the assembly to any unstable surface.

The applicable subheading for the Clip will be 3926.90.9995, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of plastics…: other: other…other. The duty rate will be 5.3 percent ad valorem.

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 World Wide Web at http://www.usitc.gov/tata/hts/.

You have also requested a ruling on the country of origin marking for the Clip. 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 Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article.

The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See 19 CFR 134.35.

Every PA CLIP that will be imported by your company will be assembled onto a bungee cable to form a bungee assembly. The bungee cable is manufactured in the United States. The vast majority of bungee assemblies will be further assembled by your company into the portable deck and stern light and packaged for retail sale. A small number of bungee assemblies will be sold as replacements for customers of the portable deck and stern light that damage their original bungee cable. No PA CLIP will be sold or used without further assembly as defined above. Therefore, it is the opinion of this office that the Clip is substantially transformed as a result of the U.S. processing, as after importation, it has either become a component of the assembled portable deck and stern light or a component of a replacement part for that same assembly. In this case, the U.S. manufacturer is the ultimate purchaser of the imported Clip and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin.

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 Gary Kalus at [email protected].

Sincerely,

Gwenn Klein Kirschner
Director
National Commodity Specialist Division