CLA 2-OT:RR:NC:N2:350
Mr. Lei Peng
Suzuran Medical Inc.
1-29, 4 Chome, Yasui, Kita-KU Nagoya, Japan 4620023
RE: The country of origin determination of cotton swabs; 19 CFR 102.21(c)(2)
Dear Mr. Peng:
In your letter dated August 23, 2023, you requested a country of origin ruling. Your letter was accompanied by samples which will be retained by this office.
FACTS:
The cotton swabs, labeled “Sample A” and “Sample B,” consist of a 100 percent paper stem measuring approximately 6.35 cm in length which contains 100 percent cotton wadding affixed to each end. The diameter of each stick measures 2.5 mm and the diameter of the cotton tips measure 5 mm. Your letter states that each sample will have its own origin scenario.
The first scenario, regarding “Sample A,” is as follows: The raw paper, cotton comber noils, raw cotton, and recycled cotton waste are sourced from various locations outside China and shipped to the factory in Vietnam. In Vietnam, the cotton is made into cotton rolls. The paper is made into paper rolls and then cut into paper sticks. Both the cotton rolls and paper sticks are shipped to China for further processing. In China, the cotton rolls are cut into cotton slivers, then combined with the paper sticks to create a cotton swab. The cotton swabs are packed into their retail packaging and exported to the United States.
The second scenario, regarding “Sample B,” is as follows: The cotton comber noils, raw cotton, and recycled cotton waste are sourced from various locations outside China and shipped to the factory in Vietnam. In Vietnam, the cotton is made into cotton slivers. The cotton slivers are then shipped to China for further processing. In China, raw paper is sourced, made into paper rolls, and cut into paper sticks. The cotton slivers are then combined with the paper sticks to create a cotton swab. The cotton swabs are packed into their retail packaging and exported to the United States.
ISSUE: What is the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the cotton swabs will be 5601.21.0090, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for Wadding of textile materials and articles thereof; textile fibers, not exceeding 5 mm in length (flock), textile dust and mill neps: Wadding of textile materials and articles thereof: Of cotton: Other. The rate of duty will be 3.6 percent ad valorem.
COUNTRY OF ORIGIN: Section 334 of the Uruguay Round Agreements Act (URAA) (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall 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:
5601… (2) A change to flock, textile dust, mill neps, or articles of wadding, of heading 5601 from any other heading, or from wadding of heading 5601.
In both scenarios the cotton swabs meet the terms of the tariff shift above. The paper sticks are classifiable in heading 4823 and the cotton sliver is classifiable in heading 5203, HTSUS, which are subsequently transformed into articles of heading 5601, HTSUS. The country of origin for the cotton swabs in both scenarios will be China.
HOLDING:
Per the terms of the tariff shift the country of origin is conferred in China.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 5601.21.0090, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 5601.21.0090, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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.
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 U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note 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 Michael Capanna at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division