OT:RR:NC:N3:136
Benjamin DeFazio
B.F. DeFazio CHB
99 W. Hawthorne Ave., Suite 612 Valley Stream, NY 11580
RE: The country of origin of Lionogen Blue 6520 Pigment; Correction to Ruling Number N334105
Dear Mr. DeFazio:
This letter replaces Ruling Number N334105, dated August 17, 2023, which contained a clerical error. A Key Raw Material indicated as 14% is actually 0.14%. A complete and corrected ruling follows.
In your letter dated November 30, 2023, on behalf of your client, Toyo Ink America, LLC, you requested a country of origin ruling on Lionogen Blue 6520 Pigment.
The subject product is described as a pigment, which is produced in Japan, incorporating various raw materials from India, China, and Japan. You describe the raw material from India as Indanthrone Blue Crude A, (Key Raw Material, 90.00% of product composition). You describe the raw material from China as Phthalocyanine Crude, (Key Raw Material, 0.14% of product composition). You indicate that the remaining materials are subsidiary and sourced from Japan and China. You state that the tariff classification of both key raw materials and the final product is 3204.17, Harmonized Tariff Schedule of the United States (HTSUS).
The production process in Japan consists of the following steps:
1. Synthesis of Intermediate 1 with Phthalocyanine Crude
2. Mixing Indanthrone Blue Crude A, Barium Sulfate, and Intermediate 1 by Nauter Mixer
3. Milling Process by Hammer Mill
4. Packaging and Inspection
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 test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982).
This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993).
With respect to the subject product, we have determined that the production process in Japan using raw materials from India, China, and Japan, does not result in a substantial transformation of the key raw materials of Indian and Chinese origin. Therefore, in our opinion, the country of origin for the subject product is India and China.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3204.17, HTSUS, unless specifically excluded, may be 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 3204.17, 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.
This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency (EPA). Information on the TSCA can be obtained by contacting the EPA at Document Control Office (7407M), Office of Pollution Prevention and Toxics (OPPT), Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W., Washington, D.C., 20460, by calling the Toxic Substances Control Act Hotline at (202) 554-1404, by e-mailing to [email protected], or by visiting their website at www.epa.gov.
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 Nuccio Fera at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division