MAR-2-44:OT:RR:NC:1:130
Mr. Robert D. Stang
Husch Blackwell, LLC
750 17th St., NW
Washington, District of Columbia 20006
RE: The country of origin of cork bulletin boards
Dear Mr. Stang:
In your letter, dated June 24, 2020, you requested a binding country of origin ruling on behalf of your client, Office Depot, Inc. The request was returned for additional information, which was received by this office on July 29, 2020. Product information and photos were submitted for our review.
Your request concerns the country of origin of cork-faced bulletin boards. You describe a scenario wherein portions of the product manufacturing take place in Portugal, China, and Vietnam. You indicate that 0.8mm-thick cork sheet is manufactured in Portugal; 8.55mm-thick fiberboard sheet and medium density fiberboard (MDF) frame components are manufactured in China; and glue, hanging hardware, and printed matter are manufactured in Vietnam. The value of the Chinese components far exceeds the value of any other components and/or labor. You explain that the following manufacturing steps occur in Vietnam: fiberboard and cork sheets are cut to final rectangular dimensions; the MDF frame components are glued together; the frame, fiberboard, and cork components are assembled together; the hanging hardware is attached; and the item is packaged.
In your letter, you suggest that the country of origin of the cork bulletin board is Vietnam, as none of the components alone function as a bulletin board. You assert that the assembly of the components constitutes a substantial transformation. We disagree.
Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry 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" within the meaning of Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908). We must therefore determine if or where a substantial transformation of materials occurs in order to determine country of origin.
As there is no specific classification for cork or fiberboard bulletin boards, these items are considered to be composite goods classifiable in accordance with General Rule of Interpretation 3(b). The material imparting the essential character governs classification. Customs has long held that the material which provides the means by which a bulletin board performs its principal function – the posting of messages, pictures, etc. by the use of tacks, pushpins, and the like - imparts the essential character. See Headquarters rulings 954862 and 955013, as well as New York Ruling G80243. As the cork sheet measures less than 1mm in thickness, while the fiberboard measures 8.55mm in thickness, it is clear that the fiberboard performs the principal function of securing the tacks and pins. The cork, on its own, is insufficient to perform this function.
In your letter, you state that the fiberboard is “cut-to-shape in Vietnam”. However, as shown in the photos provided with your submission, the fiberboard is merely cut to size; the material manufactured in China is rectangular, and the final bulletin board component is also rectangular. The manufacturing does not yield a new and different article; it in fact yields the same article, just smaller. Both the fiberboard material and the final fiberboard component are classified in an identical manner. Cutting to size does not constitute a substantial transformation. Additionally, Customs has long held that assembly does not constitute a substantial transformation. See Headquarters rulings 083461, 954449, etc.
The fiberboard component imparts the essential character of the bulletin board. The fiberboard is manufactured in China and does not change identity in Vietnam. Effectively, the fiberboard is merely dressed to have the appearance of a bulletin board consisting of cork.
The country of origin of the bulletin boards is China.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division