CLA-2:OT:RR:NC:N1:126
Angie Courteau
LZB Manufacturing, Inc.
One La-Z-Boy Drive
Monroe, MI 48162
RE: Country of origin of leather from Vietnam
Dear Ms. Courteau:
In your letter dated January 31, 2020, you requested a country of origin ruling for leather hides. Illustrative literature, manufacturing process, and a sample was provided for review.
The bovine leather, identified as “Leather Hides, Item number LB1728” will be imported as whole hides that are approximately 45 to 55 square feet each. Your letter indicates the leather is mainly sourced from the United States (U.S.), Germany, Sweden, Australia, Great Britain, and Brazil. The leather hides sourced from Brazil are processed from raw hide to wet-blue state (classifiable in heading 4104 when imported in the wet state) and shipped and exported to Vietnam to undergo further processing as listed below. The finished article will be used as upholstery leather in the manufacture of furniture (classifiable in heading 4107).
1) Process done in Brazil, from raw hide to wet-blue state:
a) Curing - Raw hides and skins must be preserved to stop them from deteriorating before the leather-making process can begin. Methods of preservation include salting, chilling, freezing and the use of biocides.
b) Soaking - Cured hides or skins are soaked in water for several hours to several days. This allows them to reabsorb any water they may have lost in the curing process or during transportation. It also helps to clean them of salt and dirt.
c) Liming - Liming removes the epidermis and hair. This also results in alkaline swelling of the pelt to cause a controlled breaking of some of the chemical crosslinks of the collagen.
d) Fleshing - After liming, the pelt is passed through a machine to remove fleshy tissue from the flesh side. Hides may be split into layers at this stage or after tanning.
e) Deliming - The principal action of deliming is to gradually neutralize the alkali in the pelt, avoiding rapid changes in pH which could lead to distortion or disruption of the tissues.
f) Bating - A long delime can significantly improve the removal of any remaining lime, scud (miscellaneous debris) and residual components broken down during liming. Bating - based on the use of enzymes - completes this process so that the pelt is flat, relaxed, clean and ready for pickling and tanning.
g) Pickling - Weak acid and salt solutions are used to bring the pelt to the weakly acid state required for most tanning processes. Stronger pickling solutions are used to preserve pelts so that they can be stored or transported in a stable form over periods of several months.
h) Degreasing - Solvents or water-based systems can be used to remove excess grease before tanning.
i) Tanning - Tanning converts the protein of the raw hide or skin into a stable material, which will not putrefy and is suitable for a wide variety of purposes. Tanning materials form crosslinks in the collagen structure and stabilize it against the effects of acids, alkalis, heat, water and the action of micro-organisms. The main types of tanning materials are mineral tannages. Most leather is tanned using salts of chromium.
2) Process done in Vietnam, from wet-blue state to finished upholstery leather:
a) Splitting - A splitting machine slices thicker leather into two layers. The layer without a grain surface can be turned into suede or have an artificial grain surface applied.
b) Shaving - A uniform thickness is achieved by shaving the leather on the non-grain side using a machine with helical blades mounted on a rotating cylinder.
c) Neutralization - Neutralizing removes residual chemicals and prepares the leather for further processing and finishing. Additional tanning material may be applied to give particular properties which are required in the finished leather.
d) Dyeing - The dyeing of leather into a wide variety of colors plays an important part in meeting fashion requirements. Some leathers are only surface dyed, while others need completely penetrated dyeing, as is the case with suede leathers.
e) Fatliquoring - Fatliquoring introduces oils to lubricate the fibers and keep the leather flexible and soft. Without these oils the leather will become hard and inflexible as it dries out.
f) Samming - This process reduces water content to about 55% and can be achieved by a number of machines, the most common being like a large mangle with felt covered rollers.
g) Setting out - The leather is stretched out and the grain side is smoothed. This process also reduces the water content to about 40%.
h) Final drying - Leather is normally dried to 10-20% water content. This can be achieved in a number of ways and each method has a different effect on the finished leather.
i) Staking and dry drumming - A staking machine makes the leather softer and more flexible by massaging it to separate the fibers. To finish off, the leather may be softened by the tumbling action inside a rotating drum.
j) Buffing and Brushing - The flesh surface is removed by mechanical abrasion to produce a suede effect or to reduce the thickness. In some cases, the grain surface is buffed to produce a very fine nap, e.g. nubuck leathers. After buffing the leather is brushed to remove excess dust.
k) Finishing - The aims of finishing are to level the color, cover grain defects, control the gloss and provide a protective surface with good resistance to water, chemical attack and abrasion.
l) Final grading - Leather will be graded before dispatch to the customer. This grading may consider the color intensity and uniformity, the feel of the leather, softness, visual appearance, thickness, design effects and natural defects such as scratches.
m) Measurement – The area of each piece of leather is measured by machine. Nearly all leather is sold by area, so accurate measurement is important.
Section 19 C.F.R. § 134.1(b) defines "country of origin" as the country of manufacture, production or growth of any article of foreign origin entering the U.S. 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 Part 134. A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use which differs from the original material subjected to the process. An imported article is not a product of a country unless it has been substantially transformed there into a new and different article of commerce with a name, character, or use different from that of the article or articles from which it was transformed.
In the instant case, we find that the combination of the processing operations performed in Vietnam constitute a substantial transformation of the imported wet blue hides into a new and different article having a new name, character and use. We are of the opinion that the splitting, shaving, neutralization, dyeing, samming, fat liquoring, conditioning and staking, buffing and brushing, and finishing process convert the wet blue hides from a product which is suitable for many uses into a product which is suitable for specific uses. The material which emerges after these processes has lost the identifying characteristics of its constituent material and possesses attributes such as softness or firmness and a desired color which are specifically applicable to given uses, and do not exist in the material sourced from Brazil. Therefore, we consider the leather to be a product of Vietnam.
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 Elena Pietron at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division