MAR-2-48:OT:RR:NC:N5:130
Mr. Bryan Shields
NuCare, LLC
4201 Sierra Point Drive, STE 102
Sacramento, CA 95834
RE: The country of origin of “souffle cups”
Dear Mr. Shields:
In your letter, dated April 24, 2025, you requested a binding country of origin ruling on paper “souffle cups”.
Product information and photos were submitted for our review.
The product under consideration is “souffle cups”, small paper cups that are used for the distribution of
medications in medical settings. The cups are single-use and non-sterile. They are made of paper that is
molded into a cup shape, resulting in pleats around the outer perimeter, and the paper is rolled at the cup
edge. The souffle cups are manufactured in multiple sizes, from 0.5 oz. to 1 oz.
In your submission, you describe a scenario wherein the master rolls of paper originate in Indonesia. The
paper is then shipped to China, where it is cut into squares and then die-cut into circular shapes. The paper
circles are then molded into a cup shape and the edge of the cup is rolled.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g.,
Headquarters Ruling Letter (“HQ”) 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).
In China, the paper is cut, die-cut to shape, molded into the cup shape, and rolled at the cup’s edge. The
totality of these operations constitutes a substantial transformation. Paper is transformed into a functional
cup. Therefore, China is the country of origin of the paper souffle cups.
The applicable subheading for the souffle cups will be 4823.69.0020, Harmonized Tariff Schedule of the
United States (HTSUS), which provides for Other paper, paperboard, cellulose wadding and webs of
cellulose fibers, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or
webs of cellulose fibers: Trays, dishes, plates, cups and the like, of paper or paperboard: Other: Cups and
round nested food containers. The rate of duty will be free.
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 4823.69.0020, 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. At this time products from all 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. 9903.01.25, in addition to subheading
4823.69.0020, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 4823.69.0020, 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 4823.69.0020, 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.
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 on the World Wide Web at https://hts.usitc.gov/current.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division