MAR-2 OT:RR:NC:3:140
Ms. Irene Tsiavos
Fun World, division of Easter Unlimited, Inc.
80 Voice Road
Carle Place, NY 11514
RE: THE COUNTRY OF ORIGIN/MARKING OF MAKEUP SETS
Dear Ms. Tsiavos:
This is in response to your letter dated December 14, 2018, on behalf of Fun World, (division of Easter Unlimited, Inc.), requesting a ruling on the Country of Origin of make-up kits, assembled in Taiwan. The kits consist of components from both China and Taiwan. A representative sample was not included with your request.
The products in question (Item # 5211C) are called Skeleton, La Muerte, Leopard, Fawn, and Alien Make-Up Kits. You provided the following breakdown for the kits. Each kit contains the following:
Parts made in China to be transported and packaged in Taiwan with the face make-up
Cost for one Make-Up Kit:
Make-up brush $0.078 USD
Make-up pencil $0.080 USD
Make-up sponge $0.020 USD
Plastic packaging tray $0.010 USD $0.01USD per kit (1 Tray holds 12 kits)
Total value from China:$0.188 USD
Made in Taiwan
Cost for one Make-Up Kit:
Face Make-up (4 colors) $0.50 USD
packaging - card $0.08 USD
packaging - blister $0.01 USD
Total value from Taiwan: $0.59 USD
The make-up kits will each consist of makeup and various tools required for its application. The makeup kits are primarily used to paint character motifs on a person’s face. You have provided cost data and information on the source country of each component. You have asked for a determination of Country of Origin. For purposes of determining Country of Origin we must first ascertain if the indicated kits will be considered to be sets for classification purposes. We must also determine the essential character of those sets, and if the components lose their identity through processing or other manufacturing processes.
The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term “goods put up in sets for retail sale” means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article.
Based upon the data and description that you provided we conclude that the instant products meet the tariff definition of a set. It is our opinion that the essential character is determined to be the make-up components, both by cost, and their purpose in the sets. None of the components lose their identity through any manufacturing process. Processing in Taiwan is a simple repackaging process.
The applicable subheading for Item # 5211C – Skeleton, La Muerte, Leopard, Fawn, and Alien Make-Up Kits will be 3304.99.5000, Harmonized Tariff Schedule of the United States (HTS), which provides for Beauty or make-up preparations and preparations for the care of the skin (other than medicaments): Other: Other: Other….. The rate of duty will be free.
The "country of origin" is defined in 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. With respect to the repackaging of the tools and makeup components, we find that the repackaging does not result in a new product having a distinctive name, character or use. Each component must be marked with the country of manufacture of that specific component.
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.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
Each component of the make-up kits must be marked with wording that satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. The marking for each component must allow the ultimate purchaser to be able to find the marking easily and read it without strain. The words "Made in China" or “Made in Taiwan” or similar wording, must appear legibly, permanently and conspicuously such that it will remain on the article until it reaches the ultimate purchaser.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 3304.99.5000, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 3304.99.5000, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 Paul Hodgkiss at (973) 368-6809.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division