CLA-2-39:OT:RR:NC:N4:415
Mr. Timothy D. Silva
TACRIG, Inc.
20280 Southwest Seely Lane
Sherwood, OR 97140
RE: The tariff classification and marking of plastic holster parts from China.
Dear Mr. Silva:
In your letter dated July 18, 2020, you requested a tariff classification and marking ruling.
Images were submitted in lieu of a sample.
There are two parts submitted for consideration. The first part is described as belt loops and the second as a backer. Both of these parts are used in the assembly of a firearm holster with the other holster components being made in the United States. Neither possess the essential character of the finished holster, General Rule of Interpretation 2(a) noted. Both are made wholly from plastic.
As these parts would be considered articles of plastic, and as they are not provided for more specifically elsewhere, the applicable subheading will be 3926.90.9985, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [o]ther: [o]ther.” The column one, general rate of duty is 5.3 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3926.90.9985, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 3926.90.9985, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 at https://hts.usitc.gov/current.
Further, you inquired whether each of these parts needed to be marked individually or if they are exempted from the marking requirements. Per your correspondence, these parts will be imported and used to assemble the finished holsters by your company.
The marking statute, section 304, Tariff Act of 1930, as amended (19 USC 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 USC 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. Based upon the information presented, it is the opinion of this office that these two parts, the belt loops and backer, are substantially transformed into a new and different article of commerce in the United States. As such, the U.S. manufacturer is considered the ultimate purchaser per 19 CFR 134.1(d)(1). Pursuant to 19 CFR 134.35, the imported parts are excepted from individual marking and only the outermost container is 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 CFR 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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division