CLA-2-48:OT:RR:NC:4:434
Mr. David Murphy
GDLSK, LLP
599 Lexington Ave. FL 36
New York, NY 10022
RE: A country of origin determination of paper file folders
Dear Mr. Murphy:
In your letter, dated March 15, 2023, you requested a country of origin ruling for marking and duty purposes on behalf of your client, Staples, Inc., on two styles of paper file folders. A detailed description of the manufacturing operations, values, and photos of the items were submitted for our review.
The finished goods to be imported are two similar top tab file folders, item UNV12213 in manila, and item ST224519, a slightly larger folder, in red.
First, we will address tariff classification. The applicable subheading for the folders will be 4820.30.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Binders (other than book covers), folders and file covers: Other.” The rate of duty will be Free.
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 also requested a country of origin determination for the purposes of marking and duty. In your letter, you describe a scenario wherein parent rolls of paper from Vietnam or Japan are sent to Cambodia where they will be further manufactured into their final form as described here:
The jumbo rolls of uncoated white paper (170GSM) measure from approximately 64.5 cm to 90 cm in width and 3,000 meters to 5,000 meters in length.
In Cambodia the rolls are processed through a printing machine where ink of Cambodia origin is applied to uniformly color the paper.
The paper is then die-cut to length and width and shaped with top tabs. The cut pieces measure approximately 29.5 cm by 46 cm (standard size) or 29.5 cm by 45 cm, with an uneven top accounting for the tabs.
Following die-cutting, the paper is folded into a finished file folder on a folding machine and packed, 100 folders per box.
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).
You propose that the country of origin is Cambodia. We agree. The parent rolls of paper from Vietnam or Japan are substantially transformed when they undergo manufacturing operations in Cambodia. The jumbo rolls of paper are not predetermined for use as folders upon importation into Cambodia, while the finished product leaving Cambodia is predetermined to be used as a file folder and has no other practical use. The rolls of paper have been transformed into a new article with a distinctive name, character or use. When imported into the United States, the country of origin of these products for marking and duty purposes will be Cambodia.
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