CLA-2-73:OT:RR:NC:N1:121
John A. Bessich
Follick & Bessich, Attorneys at Law
33 Walt Whitman Rd. Suite 310
Huntington Station, NY 11748
RE: The tariff classification and country of origin of a metal and plastic concrete form insert
Dear Mr. Bessich:
In your letter dated March 9, 2021 you requested a tariff classification and country of origin determination on behalf of Stanley Black & Decker, Inc.
The merchandise under consideration is described as a Wood Knocker II+ concrete cast-in-place form insert, catalog number PFM253381258. The Wood Knocker II+ consists of an internally threaded hex head steel insert, molded plastic sleeve, and three breakaway steel-wire nails press-fit together. It is designed to provide “hanger” attachment points for mechanical, electrical, plumbing and fire protection systems that connect to concrete floor, roof or wall slabs. The steel insert functions as the attachment point and enables externally threaded rods or bolts to be inserted into the cured concrete. The plastic sleeve functions to hold the steel insert in position and provide color-coding to indicate the insert size to the user. The nails function to fasten the insert and plastic sleeve to the formwork that is used to support newly poured concrete while it dries and hardens. The Wood Knocker II+ is nailed to the formwork, the concrete is poured over it and fully cures. The form is removed, leaving the Wood Knocker II+ embedded in the concrete. The color-coded bottom plate of the plastic sleeve is visible on the surface of the concrete allowing the user to easily locate the steel insert. The steel insert acts as an anchor point, allowing the installation of bolts or threaded rods to securely hang or otherwise affix pipe and sprinkler systems, HVAC ducts, electrical cable trays, conduit and lighting, and the like during building construction. The steel insert predominates by value and weight.
The Wood Knocker II+ concrete cast-in-place form insert is composed of different components (steel and plastic) and is considered a composite good. The Explanatory Notes to the Harmonized Tariff Schedule of the United States (HTSUS), 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 consists only of the material or component that imparts the essential character to the composite good. If no essential character for the composite good can be determined, then Rule 3 (c) provides that classification will be determined by the heading that occurs last in numerical order among those headings that equally merit consideration. By application of GRI 3 (b) this office finds that the Wood Knocker II+ concrete cast-in-place form insert imparts the essential character.
The applicable subheading for the Wood Knocker II+ concrete cast-in-place form insert, catalog number PFM253381258 will be 7318.19.0000, Harmonized Tarif System of the United States (HTSUS), which provides for Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel: Threaded articles: Other. The rate of duty will be 5.7% ad valorem.
You state the threaded steel insert will be made in either Vietnam, Taiwan, India or Mexico.
The molded plastic sleeve and steel wire nails will be made in China. The constituent components of the Wood Knocker II+ will be press-fit together and packaged in China for export to United States. The press-fitting together of the Wood Knocker II+ components in China is a simple procedure that does not involve a complex assembly. It is accomplished by the simple joining of the steel insert, plastic sleeve and nails using a press.
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”.
Based on the information submitted, this office is of the opinion that in this instance the assembly operation performed in China does not substantially transform the steel insert of either Vietnam, Taiwan, India or Mexico origin into a Chinese product. The press-fitting in China of additional individual components to produce the finished Wood Knocker II+ does not create a new and different article of commerce with a distinct character and use that is not inherent in the steel insert that is imported into China from Vietnam, Taiwan, India or Mexico. Therefore, the country of origin for the Wood Knocker II+ concrete cast-in-place form insert, catalog number PFM253381258, will be the country of origin of the steel insert, which, in this scenario, is either Vietnam, Taiwan, India or Mexico.
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.
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 Jennifer Jameson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division