CLA-2-76:OT:RR:NC:N5:116
Ms. Jean Wang
Sinobec Resources LLC
1901 Green Road, Bay E
Pompano Beach, Florida 33064
RE: The tariff classification of aluminum fence posts from Indonesia
Dear Ms. Wang:
In your letter dated December 12, 2023, you requested a tariff classification ruling.
The products to be imported are referred to as aluminum fence post and hardware “kits” used to make privacy screens and fences and identified as item numbers TRAXX102, TRAXX108, and TRAXX72. According to your submission, item numbers TRAXX102 and TRAXX108 are comprised of an aluminum post, an aluminum cap, nylon spacers/board locks, and connecting hardware while item number TRAXX72 consists of the same components along with a mounting plate, a base cover, and an Allen key. The posts are made from type 6063-T5 aluminum and have been extruded, drilled, and powder coated. You indicate that the fence panels and rails are not included with each “kit.” Although you described the subject merchandise as “kits,” based on the information provided, we find that the products in question to be completed fence posts.
The applicable subheading for the aluminum fence posts, item numbers TRAXX102, TRAXX108, and TRAXX72 will be 7610.90.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for aluminum structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminum plates, rods, profiles, tubes and the like, prepared for use in structures: other: other: other. The rate of duty will be 5.7 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.
In addition to a tariff classification, you are requesting a country of origin determination for the fence posts for purposes of the applicability of trade remedies. Please be advised when determining the country of origin for purposes of applying trade remedies under Section 301, Section 232 and Section 201, the substantial transformation analysis is applicable. The country of origin is the country where the article last underwent a “substantial transformation”, that is, processing which results in a change in the article's name, character, or use. 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. This determination is based on the totality of the evidence. See Texas Instruments, Inc. v. United States, 681 F.2d 778 (CCPA 1982).
Assembly operations that are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. Factors which may be relevant in this evaluation may include the nature of the operation (including the number of components assembled), the number of different operations involved, and whether a significant period of time, skill, detail, and quality control are necessary for the assembly operation. See C.S.D. 80-111, C.S.D. 85-25, C.S.D. 89-110, C.S.D. 89-118, C.S.D. 90-51, and C.S.D. 90-97. If the manufacturing or combining process is a minor one which leaves the identity of the article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983).
You indicate for both item numbers TRAXX102 and TRAX108 that the nylon spacers/board locks and the aluminum cap of Chinese origin are sent to Indonesia where they are assembled with an aluminum post of Indonesian origin to make finished fence posts. Regarding item number TRAXX72, the nylon spacers/board locks, an aluminum cap, and a base cover of Chinese origin are sent to Indonesia where they are assembled with an aluminum post and mounting plate of Indonesian origin to make complete fence posts. You state that the hardware/fasteners used to assemble the fence posts are of Indonesian or Chinese origin.
Based on the facts presented, this office finds that a substantial transformation has not been performed. The Chinese components are shipped to Indonesia and merely assembled with the aluminum post of Indonesian origin and in the case of item number TRAXX72 joined together with the aluminum post and mounting plate of Indonesian origin resulting in finished fence posts. As such, the country of origin of the subject fence posts for purposes of trade remedy applicability will be Indonesia. The subject fence posts are not subject to Section 232 or 301 duties.
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 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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division