OT:RR:NC:N5:137
M Jason Cunningham
Sonnenberg & Cunningham PA
780 Fifth Ave South, Suite 200
Naples, FL 34102
RE: The country of origin of cable staples and cable clips
Dear Mr. Cunningham:
In your letter dated March 31, 2025, you requested a country of origin ruling on cable staples and cable clips
on behalf of your client, Great Star Tools.
The products under consideration are cable staples and cable clips. Each product is retail packaged in
quantities of 10, 25, 50 or 100. They are not commingled. The items are used to secure non-metallic cables
(such as coaxial, ethernet etc.) to wood, walls, framing or joists.
The first item is a cable staple that consists of a wide mostly flat, injection molded plastic saddle in the shape
of a “u” with a pre-installed metal nail embedded in the channel on either side. The cable is placed between
the two nails and then the product is gently driven into the surface so that the staple anchors the cable into
place.
The second item is a cable clip is molded in the shape of a “u” and has a pre-installed metal nail embedded in
a channel next to the straight edge. The cable fits into the open area of the clip while the nail is driven into
the wall to hold the clip in place.
The cable staples and cable clips are composite articles comprised of metal nails and plastic saddles or clips.
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1
provides that classification shall be determined according to the terms of the headings of the tariff schedule
and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis
of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may
then be applied in order.
GRI 3(b) states, in pertinent part:
Mixtures, composite goods consisting of different materials or made up of different components, and
goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified
as if they consisted of the material or component which gives them their essential character, insofar as
this criterion is applicable.
It is the opinion of this office that the essential character of the cable staples and cable clips is imparted by
the plastic components.
These products are akin to products in NY Ruling N030308 dated June 23, 2008, and NY Ruling N073595
dated September 2, 2009. The clips and staples in these rulings were classified in subheading 3925.90.0000
which provides for builders’ ware of plastics, not elsewhere specified or included: other.
The cable staples and cable clips have substantially identical processing steps and locations. They undergo
two manufacturing phases.
In India:
1. Raw steel wire is stretched to the desired diameter.
2. The wire is then cut to a specified length.
3. One end of each piece is sharpened to make the nail’s point and the other is flattened to make the nails
head.
4. The shank is notched (or grooved).
5. A coating is applied; the nails are packaged and shipped to China for further processing.
In China:
1. The staple saddles and cable clips are produced by injection molding into their final shape and size.
2. The nails are press-fitted into their associated plastic saddle or clip to produce the finished cable staples
and cable clips.
When determining the country of origin for purposes of applying current trade remedies under Section 301,
the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated
November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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).
It is the opinion of this office that the production process in China results in a substantial transformation of
the nails into cable saddles and cable clips. Therefore, the country of origin of the cable saddles and cable
clips will be China.
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate
of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition
to subheading 3925.90.0000, HTSUS, listed above.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong
and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other
countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must
report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.63, in addition to
subheading 3925.90.0000, HTSUS, listed above.?
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 3925.90.0000, 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 3925.90.0000, 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/programs-administration/trade-remedies, respectively.
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 Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division