CLA-2-94:OT:RR:NC:N4:463
Jill Cramer
Mowry & Grimson, PLLC
5335 Wisconsin Avenue, NW, Suite 810
Washington, DC 20015
RE: The country of origin of a wooden bed.
Dear Ms. Cramer:
In your letter dated October 20, 2020, on behalf of your client, American Signature, Inc., seeking confirmation that the below articles’ country of origin is Vietnam and that they are not subject to Section 301 duties. Illustrative literature, product descriptions and a manufacturing process were provided for review.
The items subject of this ruling request are constructed of foreign and domestically sourced materials. A description of the items follow.
Model OB8350-54-G is a Queen–size slatted platform wooden bed with two sconce lights. It measures 64" (W) x 72" (H) x 87" (D) when assembled and is available in natural and white finishes.
Model OB8351-64-G is a King-size slatted platform wooden bed with two sconce lights. It measures 80" (W) x 74" (H) x 87" (D) when assembled and is available in natural and white finishes.
You state that the subject merchandise is classified in subheading 9403.50.9045, Harmonized Tariff Schedule of the United States (HTSUS) and seek confirmation that they are not subject to Section 301 duties. We are in agreement with both assertions.
The wooden beds consists of different components (slatted platform, wooden frame with two sconce lights) and are considered composite goods for Tariff purposes. The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level.
The ENs for General Rule of Interpretation (GRI) 3(b) (VIII), state that “the factor which determines essential character will vary between different kinds of goods. It may for example, be determined by the nature of the materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.” When the essential character of a composite good can be determined, the whole product is classified as if it consisted only of the material or component that imparts the essential character to the composite good. In this case, it is the wooden bed that imparts the essential character to the articles. A breakdown of the materials was provided showing that the wooden beds predominates by weight and volume over the sconce lights. In addition, the beds provides the essential role of resting and sleeping, while the sconce lights have a subsidiary role of providing illumination.
The applicable subheading for these articles will be 9403.50.9045, HTSUS, which provides for “Other furniture and parts thereof: Wooden furniture of a kind used in the bedroom: Other: Other: Beds: Other.”
COUNTRY OF ORIGIN
Section 134.1(b), Customs Regulations (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 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 occurs when articles lose their identity and become articles having a new name, character, or use. No one factor is decisive.
Per the information provided, the wooden beds, subject of this ruling, are comprised of a wooden headboard, a wooden footboard, two wooden side rails, frame slats and screws. The wooden components are made from imported kiln-dried lumber that are cut to size and shape in Vietnam. The wooden beds incorporate two sconce lights that are comprised of a bulb holder, lamp shade and power source, all manufactured in China. The sconce lights will be imported into Vietnam and packaged with the beds. The bed frames are made of spruce wood and minor metal fittings— all of the manufacturing operations on the wood are performed in Vietnam. Each wooden bed is shipped complete with its sconce lights in one box from Vietnam to the United States.
In view of these facts, the country of origin for the bed is conferred in Vietnam. Therefore, the duty under Section 301 of the Trade Act of 1974, as amended, does not apply to these articles.
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 on the World Wide Web at https://hts.usitc.gov/current.
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 Seth Mazze at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division