CLA-2-46:OT:RR:NC:4:434
Ms. Lesa Hubbard
JC Penney
6501 Legacy Drive
Plano, TX 75024
RE: A classification and country of origin determination of bamboo shades
Dear Ms. Hubbard:
In your letter, dated November 10, 2020, you requested a classification and country of origin ruling on bamboo window shades. A detailed description of the manufacturing operations and photos of the item were submitted for our review.
The item under consideration is Style #PPK-184115, the “Cordless Bamboo Roman Shade.” The window shades, or blinds, are constructed of thin strips of bamboo, each strip measuring approximately 5mm wide and 1.5mm thick. The strips have been laid side by side and held together at intervals with textile yarns interwoven with the bamboo strips. Connected to the top and bottom of the shade are a PVC plastic head rail and bottom rail. Mounting brackets are also included. You state that the shades will be produced in a range of sizes, from the smallest, measuring 23” x 64” up to the largest, measuring 35” x 72”.
Note 1 of Chapter 46, Harmonized Tariff Schedule of the United States (“HTSUS”), states as follows:
“In this chapter the expression "plaiting materials" means materials in a state or form suitable for plaiting, interlacing or similar processes; it includes straw, osier or willow, bamboos, rattans, rushes, reeds, strips of wood, strips of other vegetable material (for example, strips of bark, narrow leaves and raffia or other strips obtained from broad leaves), unspun natural textile fibers, monofilament and strip and the like of plastics and strips of paper, but not strips of leather or composition leather or of felt or nonwovens, human hair, horsehair, textile rovings or yarns, or monofilament and strip and the like of chapter 54.”
The narrow, thin bamboo strips comprising the bamboo shades that are the focus of this request meet the definition of plaiting materials.
Therefore, the applicable subheading for the bamboo shades will be 4602.11.4500, HTSUS, which provides for “Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from articles of heading 4601…Of vegetable materials: Of bamboo: Other: Other.” The rate of duty will be 6.6 percent ad valorem.
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.
You further inquire about the country of origin for the finished shades. Per your submission, the component materials undergo the following processes in China and then Vietnam:
China:
Stock of bamboo materials is sourced
Dyeing or carbonizing the bamboo
Weaving the bamboo strips with yarn to form panels
Cutting shades to pre-determined size (length and width)
Vietnam:
Extrusion the PVC head rail and bottom rail
Assembly of the slats and head rail
Assembly of parts (brackets, cords, etc.)
Quality assurance inspection
Drying the bamboo shades
Packaging and export
Section 304 of the Tariff Act of 1930 (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin 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, U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements of 19 U.S.C. § 1304. Title 19, Section 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’ within the meaning of this part; ….” A substantial transformation occurs “when as a result of a process an article emerges, having a distinctive name, character or use” from the original material subjected to the process. Belcrest Linens v. United States, 741 F.2d 1368, 1372 (Fed. Cir. 1984). If the manufacturing process is a minor one, which leaves the identity of the imported article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff’d per curiam, 702 F.2d 1022 (Fed. Cir. 1983).
It can also be informative to research existing rulings. Headquarters ruling HQ 562799, dated 9/11/03, states, “In determining whether the combining of parts or materials constitutes a substantial transformation, the issue is the extent of operations performed and whether the parts lose their identity and become an integral part of the new article. Belcrest Linens v. United States, 573 F. Supp. 1149 (CIT 1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). Assembly operations which are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. See C.S.D. 85-25, dated September 25, 1984. However, the issue of whether a substantial transformation occurs is determined on a case-by-case basis. In Uniroyal, Inc. v. United States, 542 F. Supp.1026 (CIT 1982), the court held that an upper was not substantially transformed when attached to an outsole to form a shoe and that the upper was "the very essence of the completed shoe".”
You propose that the country of origin is Vietnam. However, in Vietnam the assembly operations are relatively minimal or simple and do not substantially alter the identity of the bamboo panel produced in China. Like the shoe upper in the above cited example, the bamboo panel is the “very essence” of the finished product, the portion of the window shade capable of blocking sunlight and providing privacy. Its precut dimensions also help determine its ultimate use as window shades. Attaching the top and bottom rails and other incidental parts in Vietnam does not constitute a substantial transformation.
The country of origin of the finished bamboo shades will be China, the country in which the essential portion of the shade was manufactured.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4602.11.4500, HTSUS, unless specifically excluded, are subject to an additional 25 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 the correct subheading.
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.
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 Charlene Miller [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division