MAR-2-48:OT:RR:NC:N1:130
Mr. Frank Saviano
Agra Services Brokerage Co.
221-20 147th Avenue
Jamaica, NY 11413
RE: Country of origin of a rigid paperboard gift box
Dear Mr. Saviano:
In your letter, dated June 16, 2023, you requested a binding country of origin ruling on behalf of your client, United Paper & Craft LLC (UPC). The request was returned to you for additional information, which was received by this office on July 17, 2023. Product and manufacturing information were submitted for our review.
Your request concerns the country of origin of style number UP2065, a rigid, two-piece, decorated gift box, which you referred to as “wine holo box”. The box is constructed of rigid greyboard (paperboard) overlaid with decorative paper that has been laminated to the outer surfaces. The term “box” used herein references both the body and lid components.
In your letter, you describe a scenario wherein manufacturing of the box will take place in the United States, China, and Vietnam. The graphic design and layout design are done in the United States by UPC’s in-house art staff. The decorative overlay paper is printed and laminated in China. The overlay paper, paperboard, decorative tinsel pompom, and glue are then shipped from China to Vietnam. In Vietnam, the paperboard is die-cut to box shape and folded by a digital case wrapping machine into three-dimensional shape and glued. The overlay paper is die-cut to shape and laminated onto the paperboard, the decorative tinsel pompom is glued to the top of the lid, and the boxes are then packaged for shipping to the United States.
Section 134.1(b) of the Customs and Border Protection Regulations (19 CFR 134.1(b)) provides that the "[c]ountry 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" within the meaning of Part 134, Customs and Border Protection Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908). We must therefore determine if or where a substantial transformation of materials occurs in order to determine country of origin.
U.S. Customs and Border Protection (CBP) has long ruled that the cutting of material to shape constitutes a substantial transformation. Fabric yardage, for example, is substantially transformed when cut into garment pieces; the country where the cutting takes place is the country of origin. See HQ rulings 083461 (May15, 1990), 555189 (June 12, 1989), 554027 (January 13, 1987), 554025 (December 16.1986), amongst others. The paperboard forms the boxes and therefore is the primary material (the decorative paper merely imparts a decorative aspect on the box). We find that die-cutting the paperboard into shapes that are ready to be folded into boxes is analogous to the cutting to shape of fabric garment pieces. Therefore, the country of origin is the country wherein the paperboard is cut to shape.
The country of origin for style number UP2065, a rigid, two-piece gift box is Vietnam.
In your letter, you state that the classification of the box is 4819.50.4060, Harmonized Tariff Schedule of the United States (HTSUS). We note that this is incorrect. The correct classification for the rigid, two-piece gift box is 4819.50.4040, HTSUS, which provides for Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibers; box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like: Other packing containers, including record sleeves: Other: Other: Rigid boxes and cartons. 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 World Wide Web at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of CBP and submit a request for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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, contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division