CLA-2-70:OT:RR:NC:N1:126
Jodi Boerner
Best Buy
7601 Penn Avenue South Richfield, MN 55423
RE: The tariff classification and country of origin of two glass screen protectors
Dear Ms. Boerner:
In your letter dated November 10, 2023, you requested a tariff classification ruling regarding two Insignia branded glass screen protectors. Two representative samples were submitted with your ruling request. The samples were sent to our Customs and Border Protection laboratory for analysis. Laboratory analysis has now been completed.
The merchandise under consideration is a glass screen protector for the iPhone 14 cell phone, Insignia model NS-14ARGLS2, and a glass screen protector for the iPad Pro 12.9-inch iPad/tablet, Insignia model NS-iP18129GLS2.
The first glass screen protector, Insignia model NS-14ARGLS2, is composed of clear glass from Thailand, AB glue (OCA+PET+SILCON) from China, PET (Polyethylene terephthalate) Film from China, and accessories (wet wipe, dry wipe, cloth, dust removal adhesive, and bag) from China. From the information you provided, the glass has an anti-reflective coating.
The second glass screen protector, Insignia model NS-iP18129GLS2 is composed of clear glass from Thailand, AB glue (OCA+PET+SILCON) from China, PET (Polyethylene terephthalate) Film from China, and accessories (wet wipe, dry wipe, cloth, and dust removal adhesive) from China.
The glass screen protectors are applied to a smart phone screen or an iPad/tablet screen to provide a protective barrier against scratches and normal wear and tear. The screen protectors will be sold in retail stores to create a finished glass screen protector for smart phones and tablets. The kits, imported in their retail sale condition, are considered sets for tariff purposes.
Laboratory analysis indicates that the screen protectors, Insignia model NS-14ARGLS2 and Insignia model NS-iP18129GLS2 are both made of soda lime glass that is chemically toughened (tempered). Both glass screen protectors have a notch on one edge and smooth rounded corners.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. The screen protectors, Insignia model NS-14ARGLS2 and Insignia model NS-iP18129GLS2 are sets composed of several components classified under different headings. Since no one heading in the tariff schedule covers all the components of the subject merchandise, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. The essential character of an article is that which is indispensable to the structure, core or condition of the article, i.e., what it is, and the most outstanding and distinctive characteristic of the article.See Structural Indus. v. United States, 360 F. Supp. 2d 1330, 1336 (Ct. Int'l Trade 2005) (citing various Customs Court decisions). Hence, the glass is the most outstanding and distinctive characteristic of these sets. Therefore, in accordance with GRI 3(b), it is the opinion of this office that the glass imparts the essential character of both sets, and thus determines the classification.
The applicable subheading for the two glass screen protectors will be 7007.19.0000, HTSUS, which provides for Safety glass, consisting of toughened (tempered) or laminated glass: Toughened (tempered) safety glass: Other. The general rate of duty will be 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.
You have also requested a country of origin for the two glass screen protectors. Insignia model NS-14ARGLS2 and Insignia model NS-iP18129GLS2 consists of the following components: clear glass from China, AB glue (OCA+PET+SILCON) from China, and PET (Polyethylene terephthalate) film from China.
You indicate that the glass screen protectors will be manufactured and assembled with other components in Vietnam to form complete glass screen protector kits prior to importation into the United States. The raw glass (sourced from Thailand) for both products, Insignia model NS-14ARGLS2 and Insignia model NS-iP18129GLS2, is shipped to Vietnam for manufacturing. The production process includes:
added.
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.
The courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff'd, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff'd, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
The float glass (classified in heading 7005, HTSUS) for both glass screen protectors, which is the essential character of both sets, is sourced in Thailand. The processes applied to the glass in Vietnam including the cutting, toughening (tempering), hydrolyzing to the clear glass from Thailand, and application of AB glue from China and PET Film from China, change the name, character and use of these materials and thus substantially transforms them into a new and different article, toughened (tempered) glass classified in subheading 7007.19.
Based on the information submitted, it is the opinion of this office that the glass screen protector for the iPhone 14 cell phone, Insignia model NS-14ARGLS2, and glass screen protector for the iPad Pro 12.9-inch iPad/tablet, Insignia model NS-iP18129GLS2, will undergo a substantial transformation in Vietnam by further manufacturing into a new and different product. Therefore, the country of origin for Customs marking purposes is Vietnam.
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, please contact National Import Specialist Elena Pietron at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division