CLA-2:OT:RR:NC:N4:234
Peter J. Fitch
Fitch, King, LLC
Attorneys and Counselors at Law
P.O. Box 8
Monmouth Beach, NJ 07750
RE: THE COUNTRY OF ORIGIN OF MOPS AND MOP HEADS PRODUCED IN THE UNITED STATES USING DOMESTIC AND IMPORTED COMPONENTS
Dear Mr. Fitch:
This is in response to your letter dated April 14, 2016, on behalf of PelRay International LLC, requesting a ruling on the country of origin of mops and mop heads produced in the United States, using domestic and foreign components.
The mops are produced in Arkansas using yarns, wires, wire bands, handles and plastic connectors. There is no mention of the “state” within the United States where the mop heads are produced, yet for consistency of this ruling both the mops and mop heads will be considered to be produced in Arkansas.
Two types of yarns are used to produce two types of mops. The first type of yarn is described as cotton, and is composed of 90% cotton waste from the United States, 40% cotton waste from Mexico and 10% polyester waste from the United States. The second type of yarn is described as rayon, and is composed of 50% rayon waste from the United States, 10% rayon waste from Spain, 20% polyester waste from the United States and 20% polyester waste from Mexico. We note that the percentages of cotton yarn exceed 100%, and therefore for purposes of this ruling, we will only rule upon cotton yarn composed of 90% cotton waste from the United States and 10% polyester waste from the United States – the subject of which equals 100%. Both yarns are spun in Mexico from the noted waste fibers and are imported in rolls to the United States.
The wire is of Mexican origin and is imported on reels to the United States, and the handles, plastic connectors and wire bands are of United States origin. The production of the mops involves attaching the connector to the handle to hold the connector in place. Then, multiple strands of yarn are then attached to the connector by laying the yarn through the connector and wrapping the wire around the yarn. Next, the wire band is attached, and the yarn is sheared to the desired length, completing the mop. If the mop head is to be sold separately, the connector with mop head is detached from the handle and packaged for sale.
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.
Congressional intent in enacting 19 U.S.C. §1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlaender & Co., 27 CCPA 297 at 302; C.A.D. 104 (1940).
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. §1304. Pursuant to 19 CFR 134.1(b), “country of origin” means 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. A substantial transformation results when a new and different article emerges from the processing having a distinctive name, character or use. Alternatively within the same context, a substantial transformation of an article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the article before its processing. See United States v. Gibson-Thomsen Co., Inc., 27 CCPA 269 (1940).
In determining whether the combining of parts or materials constitutes a substantial transformation, the issue is the extent of operations performed and whether the parts lose their identity and become an integral part of the new article. Belcrest Linens v. United States, 573 F. Supp. 1149 (CIT 1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). Assembly operations which are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. See C.S.D. 85-25, and Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983).
We do not dispute that the producing of yarns to the manufacturing of mops and mop heads is a substantial transformation of the yarns into a new and different article of commerce. Nevertheless, when more than one country is involved and has input into the finished good, we must determine which country effected the substantial transformation.
With respect to the finished mops, the handles, connectors and bands are all components of United States origin, of which yarns of foreign origin are wrapped in wires of foreign origin and joined to bands of United States origin, all of which are processed to desired specifications and lengths in the United States. It is our opinion that the processing of foreign inputs with the joining of components of United States origin into finished mops, undertaken in Arkansas, results in a substantial transformation of the goods, having a country of origin of the United States. Goods of United States origin need not be marked with country of origin.
With respect to the finished mop heads, the connectors and bands are all components of United States origin, of which yarns of foreign origin are wrapped in wires of foreign origin and joined to bands of United States origin, all of which are processed to desired specifications and lengths in the United States. From a reading of your description, it appears that the only difference between the mop heads and finished mops is that the mop heads do not contain the handles of United States origin. For the mop heads, even taking into account the lack of handles of United States origin, it is our opinion that the processing of foreign inputs with the joining of components of United States origin into finished mop heads, undertaken in Arkansas, is “meaningful,” thereby resulting in a substantial transformation of the goods. As such, the country of origin of the mop heads is the United States. Goods of United States origin need not be marked with 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 Neil H. Levy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division