CLA-2-56:OT:RR:NC:N3:351
Ms. Kathy Trotta
CONAIR® LLC
50 Millstone Road, Building 100, Suite 200
East Windsor, NJ 08520
RE: The tariff classification, country of origin and marking of ponytail holders from Taiwan; 19 CFR 102.21(c)(2); tariff shift
Dear Ms. Trotta:
In your letter dated May 12, 2022, you requested a ruling on the tariff classification, country of origin, and marking of ponytail holders. Samples of the products were provided to this office and will be retained for training purposes.
Item #1677503G072, described as a “18 pk L ND Elastic Black,” are elastic ponytail holders. Each ponytail holder is composed of a 2.1 millimeter (mm) diameter natural rubber core covered with braided 100 percent nylon filament yarn, dyed black. The ends are heat sealed and glued together to form a circle and measures 1 ½ inches in diameter. The item will be packaged and sold on a cardstock display card as an 18 piece set.
Item #1782903G048, described as a “24 pk N/D TH Elastic Black,” are elastic ponytail holders. Each ponytail holder is composed of a 2.6 mm diameter natural rubber core covered with braided 100 percent nylon filament yarn, dyed black. The ends are heat sealed and glued together to form a circle and measures 2 inches in diameter. The item will be packaged and sold on a cardstock display card as a 24 piece set.
Item #2333502G072, described as a “72 pk Girl Mix Elastic,” are elastic ponytail holders. Each ponytail holder is composed of a 1.7 mm diameter natural rubber core covered with a braided 100 percent nylon filament yarn. The ends are heat sealed and glued together to form a circle. The ponytail holders are available in two different sizes: 1 inch in diameter and 1 ½ inches in diameter; and six item different colors: hot pink, pink, lime green, teal, purple, and black. The item will be packaged and sold on a cardstock display card as a 72 piece set.
Item #3840003G048, described as a “32 L ND Elastic Black,” are elastic ponytail holders. Each ponytail holder is composed of a 2.1 mm diameter natural rubber core covered with a braided 100 percent nylon filament yarn, dyed black. The ends are heat sealed and glued together to form a circle and measures 1 ½ inches in diameter. The item will be packaged and sold on a cardstock display card as a 32 piece set.
Item #2229002G072, described as a “48 Pk Girl Elastic,” are elastic ponytail holders. Each ponytail holder is composed of a 1.7 mm diameter natural rubber core covered with a braided 100 percent nylon filament yarn. The ends are heat sealed and glued together to form a circle and measures ½ inches in diameter. The item will be packaged and sold on a retail blister card as a 48 piece set with six different colors: pink, yellow, orange, green, blue, and purple.
The manufacturing operations for the ponytail holders are as follows:
Taiwan
- 100 percent nylon filament yarn is extruded.
China
- Natural rubber is cut from sheets and spooled.
- Glue, cardstock display cards, and retail blister card are produced.
Bangladesh
- Nylon filament yarn is dyed.
- Nylon yarn is braided over the rubber core.
- Braided nylon yarn with rubber core is washed and dried.
- Braided nylon yarn with rubber core is cut to size.
- Heat seal and glue ends of braided nylon yarn with rubber core together to form a loop.
- The finished ponytail holders are packaged on cardboard display cards or retail blister cards and shipped to the United States.
ISSUES: What is the tariff classification, country of origin determination, and country of origin marking of the subject merchandise?
CLASSIFICATION:
You have suggested that the ponytail holders, Item #1677503G072, #1782903G048, #2333502G072, #3840003G048, and #2229002G072, should be classified under subheading 5609.00.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Articles of yarn, strip or the like of heading 5404 or 5405, twine, cordage, rope or cables, not elsewhere specified or included: Other.” We agree. The rate of duty will be 3.9 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 internet at https://hts.usitc.gov/current.
COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. § 3592), enacted on December 8, 1994, provides the rules of origin for textile and apparel products entered, or withdrawn from warehouse for consumption on and after July 1, 1996. Section 334 of the URAA was amended by section 405 of title IV of the Trade and Development Act of 2000, Public Law 106-200, 114 Stat. 251. Section 102.21 of Title 19 of the Code of Federal Regulations (19 C.F.R. § 102.21), implements the URAA. Thus, the country of origin of a textile or apparel products will be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of section 102.21. Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable. Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:” Paragraph (e) in pertinent part states, The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section: HTSUS Tariff shift and/or other requirements 5609 (1) If of continuous filaments, including strips, the country of origin of a good
classifiable under heading 5609 is the country, territory, or insular possession in which those filaments, including strips, were extruded.
(2) If of staple fibers, the country of origin of a good classifiable under heading 5609 is the country, territory, or insular possession in which those fibers were spun into yarns.
The textile coverings for the ponytail holders are composed of 100 percent polyester filament yarn that was extruded in Taiwan. Therefore, according to the first part of the tariff shift rule for heading 5609 above, the country of origin of the finished ponytail holders will be Taiwan.
COUNTRY OF ORIGIN MARKING: The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or container) will permit in such manner as to indicate to an ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304.
Section 134.41(b) (19 C.F.R. § 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the elastic ponytail holders is the consumer who purchases the product at retail.
An article is excepted from marking section 134.32(d) (19 C.F.R. § 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, marking the cardstock display cards or the retail blister card in which the elastic ponytail holders are imported and sold to the ultimate purchaser in lieu of marking the individual article itself is an acceptable country of origin marking for the imported elastic ponytail holders provided the port director is satisfied that the article will remain on the marked cardstock display card or the retail blister card until it reaches the ultimate purchaser.
You state that the ponytail holders will be packaged together and sold either on a cardstock display card or a retail blister card. You have submitted samples of the cardstock display card and a retail blister card with a printed label stating “Made in Bangladesh.” Although, the cards are conspicuously, indelibly and permanently marked, since the origin of the ponytail holders for the purposes of marking has been determined to be Taiwan, the cards marked “Made in Bangladesh” are not legally marked for the purposes of 19 U.S.C. § 1304.
HOLDING:
The applicable subheading for the ponytail holders is 5609.00.4000, HTSUS, dutiable at 3.9 percent ad valorem HTSUS. The country of origin of the ponytail holders is Taiwan. The proposed marking “Made in Bangladesh” is not acceptable.
The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.
This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 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, please contact National Import Specialist Kristine Dodge via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division