OT:RR:NC:N1:104

Joshua Kienitz
OEC Logistics, Inc.
13100 Alondra Blvd Ste 100
Cerritos, CA 90713

RE: The country of origin and marking of retractable ratchet tie down straps

Dear Mr. Kienitz:

In your letter dated May 4, 2025, on behalf of the Murrieta Rhino Holding Co., LLC (Murrieta Rhino), you requested a country of origin and marking ruling.

The products in question are retractable ratchet tie downs produced in two countries, Vietnam and China. Physical samples and photographs of the subject items and their corresponding retail set box were submitted with your letter for review, together with a description of the proposed production scenario and marking.

Murrieta Rhino intends to import the ratchet tie downs into the United States in individual containers that are packaged for retail sale together with other set items. Model number TD-RSRE1X10-GRN is a set consisting of four (4) fully assembled and ready-for-use ratchet tie downs. The items will arrive in the U.S. already packed for retail sale where they will remain until they reach the ultimate purchaser. The retail set box will also include soft loop accessory straps (for use as additional anchor points), a polyester drawstring bag, and small pack of product-themed stickers.

The ratchet tie down devices are used to secure cargo. They consist of a gear and pawl ratchet assembly, a short length of woven polyester strap webbing, a long length of woven polyester strap webbing, and two metal “S” hooks. The ratchet assembly is comprised of a round gear with several teeth, two spring-loaded pawls that interact with the gear teeth, a center shaft, and a handle for leverage. The product also employs a coil mechanism whereby the long strap will automatically retract around the ratchet assembly’s center shaft when the release button is pressed. The short strap is stitched at one end to a metal hook and attached at the other end to the ratchet assembly. The long strap is stitched at one end to a metal S-hook, and the other end left free to be fed into the slot of the ratchet during use.

The production of the ratchet tie downs is as follows. In Vietnam, yarn spools of Vietnam-sourced and spun yarn are made into tie down webbing using looms and cut into short and long lengths for each end of the tie down. The hooks and ratchet assembly are both produced and assembled in China entirely from Chinese origin components. The Vietnam-made straps are then exported to China for final assembly operations. In China, the webbing short ends are sewn to a hook and one end of the ratchet assembly, and the tie-down long ends are sewn into a hook and inserted into the ratcheting portion of the ratchet assembly.

The “country of origin” is defined in Section 134.1(b) of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134(b)) as “the 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.”

We note that the substantial transformation test is also used to determine the country of origin for purposes of the Section 301 measures. 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).

CBP has determined in similar country of origin scenarios that the essential character of like ratchet tie down straps is imparted by the webbing straps, as purchasers are buying the tie down straps to secure their cargo. See HQ H305503 dated Feb. 20, 2020, and New York Ruling Letters N343501 dated Nov. 22, 2024, and N316901 dated Feb. 4, 2021. The webbing straps, which are of Vietnamese origin, maintain their name, character, and use as tie down straps after assembly in China with the Chinese origin ratchet assembly and S-hooks. Accordingly, the country of origin of the complete ratchet tie down straps, packaged together with the other set components, will be Vietnam.

You propose to permanently print the country of origin marking on the outermost surface of each retail set box, so that the retail purchaser is made aware of the country of origin of the ratchet tie downs. You have submitted images of the retail packaging of the ratcheting tie downs, upon which the phrase “Designed in Texas by Rhino USA. Made in Vietnam” will be permanently printed and made visible on the outermost surface of the container. All webbing straps and soft loops will be marked as Made in Vietnam.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).

Concerning your inquiry concerning marking of the outermost surface of the retail boxes, we note that Section 134.32(d) of the CBP Regulations (19 CFR 134.32(d)) excepts from the marking requirements those “[a]rticles for which the marking of the containers will reasonably indicate the origin of the articles.” The general rules of marking articles excepted under Section 134.32, CBP marking regulations, are set forth in 19 CFR 134.22(a), which provides: “When an article is excepted from the marking requirements by subpart D of this part, the outermost container or holder in which the article ordinarily reaches the ultimate purchaser shall be marked to indicate the country of origin whether or not the article is marked to indicate the country of origin.”

In this case, your proposed marking of the ratchet tie down retail packaging containers satisfies the marking requirements and marking exception provided for by 19 CFR 134.22(d). Furthermore, the proposed marking allows the ultimate purchaser to find the county of origin marking easily and read it without strain. While your proposed country of origin marking satisfies the requirements of 19 CFR 134, we note that the words ?Designed in Texas by Rhino USA. Made in Vietnam? trigger special marking requirements under 19 CFR 134.46, because the reference to a location in the United States may mislead or deceive the ultimate purchasers as to the actual country of origin of the articles. Section 134.46 of the CBP marking regulations states:

In any case in which the words ?United States,? or ?American,? the letters ?U.S.A.,? any variation of such words or letters, or the name of any city or location in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced appear on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin of the article, there shall appear legibly and permanently in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by ?Made in,? ?Product of,? or other words of similar meaning.

Upon review of the proposed country of origin marking on the outermost retail set packaging container of the ratchet tie downs, we find that the phrase ?Made in Vietnam? appears legibly and in close proximity to the words ?Designed in Texas by Rhino USA. ?Therefore, the country of origin marking, ?Designed in Texas by Rhino USA. Made in Vietnam? meets the special marking requirements of 19 CFR 134.46. ? 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 Arthur Purcell at [email protected].


Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division