CLA-2-39:OT:RR:NC:N4:415
Tim Parsons
Parsons Trading
1244 River Park Boulevard
Napa, CA 94559
RE: The tariff classification and country of origin of plastic knee pad inserts from China
Dear Mr. Parsons:
In your letter received on May 31, 2024, you requested a tariff classification and country of origin ruling.
A sample was submitted and will be returned as requested.
The product under consideration is described as the “Low Profile Comfort Knee Pad Inserts,” style number 24603. The inserts are made of a soft plasticized foam surface laminated to a polyester jersey backing that serves as mere reinforcement. The orange plastic foam features protruding nubs that measure approximately 3/8 of an inch in depth and mold to the contour of the knee. Each insert measures 9.5 inches in length by 6 inches in width. They are sold as a pair and are meant to be inserted into men’s or women’s work pants with built-in knee pad pockets to provide cushioning when working on a hard surface.
The applicable subheading for the “Low Profile Comfort Knee Pad Inserts,” style number 24603, will be 3926.90.9985, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [o]ther: [o]ther.” The column one, general rate of duty is 5.3 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3926.90.9985, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 3926.90.9985, 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, including information on exclusions and their effective dates, 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 at https://hts.usitc.gov/current.
You also ask for a country-of-origin determination, and we note that the submitted sample is already marked, “Made in Cambodia.” Per your submission, the padding is molded in China, then sent to Cambodia where it is die-cut, silkscreen printed, and packaged before export to the United States.
Pursuant to Part 134, Customs Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 USC 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as: “[t]he 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.” 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. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation.
This office reviewed the provided documentation and is of the opinion that the padding that is molded in China holds the basic nature of the finished knee pad inserts, and they are not substantially transformed by the further processing in Cambodia. Therefore, these knee pad inserts would be of Chinese origin.
The marking statute, section 304, Tariff Act of 1930, as amended (19 USC 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
As provided in 19 CFR 134.41(b), the country-of-origin marking is considered conspicuous if the ultimate purchaser in the U.S. can find the marking easily and read it without strain.
Regarding the permanency of a marking, 19 CFR 134.41(a), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, 19 CFR 134.44, generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. Therefore, as these the knee pad inserts are not of Cambodian origin as they are currently marked, the marking will need to be altered to indicate they are “Made in China” for importation into the U.S in accordance with the above cited regulations.
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 CFR 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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division