CLA-2-39: OT:RR:NC:N4:422
Ms. Tanissa Loron?a
Mach 1 Global Services
1530 W. Broadway Road
Tempe, AZ 85282
RE: The tariff classification and country of origin of plastic water bottles from China
Dear Ms. Loron?a:
In your letter dated February 22, 2021, on behalf of your client, Kor Water Inc., you requested a tariff classification and a country of origin ruling. Photographs and marketing material were submitted along with your ruling request.
The item under consideration is identified in your letter as three Kor Nava water bottles, Arctic Ice Item number 3097, Aqua Splash Item number 16003 and Ribbon Red Item number 3259. The water bottles consist of a body, lid, straw, and carbon filter. The body of the water bottles and outer trim are all made of Tritan plastic. The caps and straws are made of polypropylene, polyacetal and silicone plastic materials. Each cap has a finger loop that can be used to either carry the bottle or as a place to position a finger when twisting off the cap. A carbon filter is imported with each plastic water bottle and is located inside the straw. The filter is designed to improve the taste of the water when consumed from the bottle.
Each bottle measures approximately 10.71 inches in height by 3.25 inches wide by 2.88 inches in length. The bottles are translucent, and each has a volume capacity of 700 ml. The bottles are designed to contain beverages such as water, juice, etc.
You have suggested that the Kor Nava water bottles are correctly classified in subheading 8421.21.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts therefore: Filtering or purifying machinery and apparatus for liquids:
For filtering or purifying water.” We disagree. Similar to ruling N132736 (dated December 15, 2010), we find the plastic water bottles provide the essential character of the composite good. The water bottles hold the water, and the straw provides the ability to consume the water. While the filter does provide better tasting water, it is not essential for the device to provide water to the user.
The three water bottles, Artic Ice Item number 3097, Aqua Splash Item number 16003 and Ribbon Red Item number 3259, are all a composite good within the meaning of General Rule of Interpretation 3. The essential character of the item is that which is indispensable to the functioning of the item. In this instance, the water bottles perform the necessary role of holding the water. The filter improves the taste of the water but is dependent upon the bottle to provide the water. In contrast, the water bottles continuously store the water and provides a means, through the drinking spout in the lid, to consume the water, even if a depleted filter is not replaced. Therefore, it is the opinion of this office that the plastic water bottle provides the essential character within the meaning of GRI 3(b).
In your letter, you also request a country of origin determination. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. §1304. Pursuant to 19 CFR 134.1(b), “country 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. A substantial transformation results when a new and different article emerges from the processing having a distinctive name, character, or use.
A “substantial transformation” occurs when an article loses its identity and a new and different article emerges from the processing having a distinctive name, character or use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at 270 (1940) (the Court held that imported wood brush block and toothbrush handles which had bristles inserted into them in the United States lost their identity as such and became new articles having a new name, character and use). In determining whether the combining of parts or materials constitutes a substantial transformation, the determinative issue is the extent of the operations performed and whether the parts lose their identity and become an integral part of the new article. Belcrest Linens v. United States, 6 C.I.T. 204, 573 F. Supp. 1149 (1983), aff’d, 741 F.2d 1368 (Fed. Cir. 1984). If the manufacturing or combining process is a minor one that leaves the identity of the imported article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 C.I.T. 220, 542 F. Supp. 1026 (1982).
In your submission, you have indicated that the body of the water bottles, lids and straws are made in China. The carbon filters are made in India and sent to China for assembly. As the water bottle provides the essence and is wholly made in China, the addition of the filters does not substantially transform the Chinese made water bottle. The Chinese made water bottles keep their country of origin. Therefore, the country of origin for all three water bottles will be China.
The applicable subheading for the water bottles, Arctic Ice, Item number 3097, Aqua Splash, Item number 6003 and Ribbon Red, Item number 3259 water bottles will be 3924.10.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: Tableware and kitchenware: Other. The rate of duty will be 3.4 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.
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 Dana L. Giammanco at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division