CLA-2-39:OT:RR:NC:N:1: 137
Todd Robinson
73 Innovations LLC
4104 Sunny Creek Lane Apex, NC 27502
RE: The tariff classification, country of origin and marking of a drinkware lid from Mexico
Dear Mr. Robinson:
In your letter dated January 15, 2023, you requested a tariff classification and country of origin determination ruling.
CLASSIFICATION:
The subject merchandise is a drinkware lid composed of polypropylene. It is in the shape of a sports cap and designed to snap on to a cup with an industry standard 402 rim or double wall tumbler. The lid has a hole for use with a straw. The lids will be imported separately from the cups and straws.
The applicable subheading for the drinkware lids will be 3923.50.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for stoppers, lids, caps and other closures, of plastics. The general rate of duty will be 6.5 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 at https://hts.usitc.gov/current.
COUNTRY OF ORIGIN:
You have requested a country of origin determination for the drinkware lids.
The raw polypropylene material is produced in Taiwan. The material is shipped to Mexico. In Mexico, steel molds are inserted into a plastic injection molding machine. The polypropylene is placed into the machine hopper, melted and poured into the mold cavity to form the lid. The lid is cooled until hardened and then separated from the steel mold. The lids are reviewed for cosmetic defects, sanitized, and bagged/boxed for transport.
The "country of origin" is defined in 19 CFR 134.1(b) 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; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.” Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11. Applied in sequential order, 19 CFR Part 102.11(a) provides that the country of origin of a good is the country in which: (1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. The drinkware lid is neither “wholly obtained or produced” nor “produced exclusively from domestic materials.” Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the drinkware lid, and paragraph (a)(3) must be applied next to determine the origin of the finished article. The imported drinkware lid is classified under heading 3923, HTSUS. The tariff shift requirement in Part 102.20 for the drinkware lid at issue states: “A change to heading 3922 through 3926 from any other subheading, including another heading within that group, except for a change to heading 3926 from articles of apparel and clothing accessories, other articles of plastics, or articles of other materials of headings 3901 to 3914 of heading 9619.”
The drinkware lids meet the tariff shift because polypropylene material sourced from Taiwan is classified under heading 3902. Therefore, the country of origin of the drinkware lids, for marking purposes will be Mexico. MARKING:
A photo of the marking was provided for review by this office. The photo shows that the marking is permanently molded on the interior of the lid. The marking states “MADE IN MEXICO” with “DESIGNED IN USA” below it in a smaller font.
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 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. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. The proposed marking of the drinkware lids, as pictured in the photo, is conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the product.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division