CLA-2-94:OT:RR:NC:N5:433

Mireya Ruano
Veyer LLC
6600 N Military Trail
Boca Raton, FL 33496

RE: The tariff classification and country of origin of a seat.

Dear Ms. Ruano:

In your letter dated April 25, 2025, you requested a binding tariff classification and country of origin ruling. In lieu of samples, technical and illustrative literature, a product description, and manufacturing processes were provided.

The item subject of this ruling request is constructed of foreign and domestically sourced raw materials. A description of the item immediately follows.

The “Mesh Chair,” SKU # BT-20919-17, is a manual gas lift, variable height adjustment, swivel seat that is constructed of injection molded plastic and a metal frame. The upholstered seat has a swivel mechanism, five wheeled casters, and padded armrests. The seat backrest mesh fabric and the seat foundation mesh fabric are constructed of 100% polyester affixed to the structural frame of the injection molded plastic. The seat foundation is not constructed of wood and the seat does not incorporate a retractable footrest. Seating is provided for a single individual. The seat approximates 19.7” in width, 19.3” in depth, and 44.49” – 50” in height. The seat will be packaged unassembled for retail sale and will contain all hardware required for assembly.

The applicable subheading for the subject merchandise will be 9401.39.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Swivel seats with variable height adjustment: Other: Household.” The rate of duty will be free.

Sourcing Scenario:

The ruling request outlines an operation wherein the textile components (mesh fabric), plastic components (backrest frame, headrest frame, armrests, casters) and the metal components (steel seat plate, aluminum joints, gas lift, assembly hardware) will be sourced in China. The seating components will be shipped and exported to Vietnam. In Vietnam, plastic components (seat foundation, swivel base), polyurethane foam, thread, glue, staples, labels, plastic bags, cardboard, and packing materials will be locally sourced. In Vietnam, the incomplete, unassembled, and unfinished seating components will undergo manufacture.

Per your submission, in Vietnam, (1) the Chinese mesh and the textile fabrics will be cut to specific shapes and dimensions using fabric cutting machines, cutting tables, and power scissors, (2) the seat foundation frame and the swivel base will be created using injection molding machines, (3) the Chinese mesh and the textile fabrics will be assembled with sewing machines to create the seat backrest, seat foundation, and the headrest, (4) the Vietnamese foam will be glued to the Vietnamese seat foundation frame and the Chinese armrests using glue guns, and (5) the Chinese headrest frame, Chinese seat backrest frame, and (6) the Vietnamese seat foundation components will undergo final assembly and upholstery using hand tools and staples. In Vietnam, the complete, upholstered, and unassembled seating components will be inspected, packed, labeled, and then exported to the United States. Photographs of these processes were provided.

Country of Origin:

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 the instant case, the Chinese components lose their identity during manufacture and undergo a substantial transformation in Vietnam to become a complete and unassembled seat, thereby, taking on a new name, character, and use. Furthermore, the manufacturing operations performed in Vietnam constitute more than minor processing and exceed simple assembly. In view of these facts, the country of origin for the seat will be Vietnam.

Trade Remedy:

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, including Vietnam, 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 9401.39.0010, HTSUS, listed above.

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/.

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 Dharmendra Lilia at [email protected].
Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division