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

Helen Xiao
Ernst & Young LLP
155 N Wacker Dr #2000
Chicago, IL 60606

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

Dear Ms. Xiao:

In your letter dated May 2, 2025, you requested a binding tariff classification and country of origin ruling on behalf of Torin (Thailand) Co., Ltd. In lieu of samples, technical and illustrative literature, a product description, and manufacturing processes were provided. We have split your ruling request and will address item 2, the “Plastic Creeper THC40-6802” in ruling letter N349329.

Item 1, the “Rolling Seat THC6-100A,” is an upholstered seat foundation constructed of wood and expanded polyethylene (EPE) foam encased in vinyl that is affixed to a powder coated metal “C” frame. The seat does not incorporate a backrest, armrests, or metal drawers. Seating is provided for a single individual. The seat approximates 14.65” in length, 14.45 in width, and 14.57” in height. A plastic tray is located at the base of the seat and allows for the placement of objects. Four swivel casters located in close proximity to the plastic tray and affixed to the metal frame allows for the seat to be positioned and repositioned. Information provided states, the seat is “[D]esigned for mechanics to sit comfortably while working.” and for “[T]asks where the mechanic needs to sit close to the ground for extended periods.” The seat will be imported unassembled with all the hardware required for assembly.

The applicable subheading for the subject merchandise will be 9401.71.0011, 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: Other seats, with metal frames: Upholstered: Other household.” The rate of duty will be free.

Sourcing Scenario:

The ruling request outlines an operation wherein the textile components (non-woven textile fabric), plastic components (vinyl, plugs, casters, tool tray), wood components (wood boards) and the metal components (steel tubes, steel bars, assembly hardware) will be sourced in China. The seating components will be shipped and exported to Thailand. In Thailand, plastic components (sponge pads, EPE pads) and packing materials will be locally sourced.

Per the ruling submission, in Thailand, item 1 will undergo manufacture wherein (1) the steel metal tubes will be precision cut to length and design specifications using high-pressure gas laser cutting machines and geometrically bent to shape using programmable tube bending machines to create the “C” frame components, (2) additional steel metal tubes will be precision laser cut to length to create the reinforcement bar components, (3) the “C” frames and the reinforcement bars will undergo automated MIG welding, assembly, removal of slag, and inspection to ensure structural integrity, (4) the welded frames will be placed into a shot blasting chamber to remove surface impurities, weld residues oxide layers, and surface cleaning (5) the welded frames will be powder coated using electrostatic guns and cured in an oven that will result in a corrosion-resistant finish, and (6) the seat cushion raw material components (vinyl, sponge pads, EPE pads) and the wooden board will be wrapped, folded, tightened, and stapled using high pressure pneumatic staple guns. In Thailand, the seat 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 Thailand to become a complete seat, thereby, taking on new name, character, and use. Furthermore, the manufacturing operations performed in Thailand constitutes more than minor processing and exceed simple assembly. In view of these facts, the country of origin will be Thailand.

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. At this time, products from all countries, including Thailand, 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 9401.71.0011, listed above.

The tariffs and additional duties cited above are current as of this ruling’s issuance. 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