H346988

H346988 June 10, 2025 OT:RR:CTF:VS H346988 RRB CATEGORY: Classification Glen Horecky Fiat Studio, LLC 11471 SW Hillcrest Circle Port St. Lucie, FL 34987 RE: Country of origin; Marking; Subheading 9810.00.25, HTSUS; Religious Marble Statue; Religious Marble Altar from China; Subheading 9903.01.24; Subheading 9903.01.63; Subheading 9903.01.25; IEEPA-Fentanyl; IEEPA-Reciprocal Dear Mr. Horecky: This is in response to your request, dated March 25, 2025, for a ruling on behalf of Fiat Studio, LLC (“Fiat Studio”), regarding the eligibility for duty-free treatment under subheading 9810.00.25, Harmonized Tariff Schedule of the United States (“HTSUS”), of a religious marble statue and a religious marble altar from China. You also request clarification regarding the applicability of additional duties under U.S. Note 2(u) to Subchapter III, Chapter 99, of the HTSUS, for products of China pursuant to the International Emergency Economic Powers Act under subheading 9903.01.24, HTSUS (“IEEPA-Fentanyl”),1 and of reciprocal tariffs under U.S. Note 2(v)(xiii)(10) to Subchapter III, Chapter 99, of the HTSUS, products of China pursuant to the IEEPA under subheading 9903.01.63, HTSUS, or under subheading 9903.01.25, HTSUS (“IEEPA-Reciprocal”)2. 1 See “Implementation of Additional Duties on Products of the People’s Republic of China Pursuant to the President’s February 1, 2025 Executive Order Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China,” 90 Fed. Reg. 9038 (February 5, 2025), as amended by “Further Amended Notice of Implementation of Additional Duties on Products of the People’s Republic of China Pursuant to the President’s Executive Order 14195, Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China,” 90 Fed. Reg.11426 (March 6, 2025). 2 See “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits,” 90 Fed. Reg. 15041 (April 7, 2025), as amended by “Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment,” 90 Fed. Reg. 15625 (April 15, 2025); Cargo Systems Messaging Service (“CSMS”) #65029337 (May 13, 2025). FACTS: The merchandise at issue consists of a religious marble statue and a religious marble altar that are manufactured in China. Item 1, the “St. Therese statue,” is a machine-carved, solid white marble statue with a smooth finish of St. Therese, a Catholic saint. The statue is carved using a computer numerical code (“CNC”) machine and finishing touches are completed by hand. The piece is not carved in low, mid, high, or sunken relief. Instead, it is carved “in the round,” visible from multiple vantage points, is in full and realistic detail, and is 5 feet in height. Item 2, the “Church Altar,” is a machine-carved, charcoal gray and solid white marble rectangular altar with a high polish finish. The piece is carved using a CNC machine and finishing touches are completed by hand. An inscription carved in Times New Roman font reads, “Centennial Year of St. Therese Parish, Alhambra, CA, 2024.” Underneath the inscription reads, “I want to spend my heaven in doing good on earth. After my death, I will let fall a shower of roses. – St. Therese of Lisieux.” Ornate relief details are carved into the altar base and ceiling; equidistant columns are located at the corners and in specific intervals of the piece. The marble altar piece is approximately 6 feet in length, 3 feet in width, and 30 inches in height. The requester, Fiat Studio, is a supplier of religious statuary. In the scenario described by the requester, St. Therese Catholic Church, a religious institution located in Alhambra, California (hereinafter, the “Church”), has contracted for the purchase of Items 1 and 2, through a church goods dealer that deals directly with Fiat Studio. When St. Therese Catholic Church or other churches place orders for marble statues or altars, the church dealers order these items directly from Fiat Studio. Fiat Studio then orders the manufacture of these statues and altars from their factory suppliers in China. Fiat Studio monitors the manufacture of the items and is the importer of record. Both Items 1 and 2 are pre-ordered by the Church as custom-designed pieces. According to a signed declaration from the pastor of St. Therese Catholic Church, an invoice from Fiat Studio issued to the Church’s church goods dealer, and a purchase order from the church goods dealer to Fiat Studio on behalf of the Church, Items 1 and 2 are comprised of a “[c]ustom-carved marble statue of St. Therese per our design,” a “[c]ustom-carved marble church altar per our specifications,” and will be imported for the sole use of St. Therese Catholic Church. The Church design committee prepares sketches of the statue and the altar and actively consults with Fiat Studio and the manufacturer in China prior to U.S. importation. Based on the requested design parameters of the statue, a full-scale model of the statue is sculpted in clay at the factory in China. After final Church approval of the clay model, a CNC machine carves a block of marble to the general shape and form of the statue, with all final carving done by hand. For the altar, the 2 Church provides Fiat Studio with the computer-aided design (“CAD”) architectural drawings and specifications. Some of the components of the altar are carved using a CNC machine, and some, which require additional decorations and embellishments, are carved by hand. In consultation with the Church, the marble statue and marble altar will undergo further modification, refinement, and carving by hand by the manufacturer. The marble statue and the marble altar will not be coated with any materials or solvents. The complete and finished marble pieces will then undergo inspection, packaging, and exportation to the United States. ISSUES: (1) What is the country of origin of the subject religious marble statue and a religious marble altar for duty and marking purposes? (2) Whether the subject religious marble statue and a religious marble altar are eligible for duty-free treatment under subheading 9810.00.25, HTSUS. (3) What are the applicable country of origin marking requirements for the subject religious marble statue and religious marble altar? (4) If the subject religious marble statue and religious marble altar are eligible for duty- free treatment under subheading 9810.00.25, HTSUS, are they exempt from the assessment of additional duties pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, of the HTSUS, for products of China under subheading 9903.01.24, HTSUS (i.e., IEEPA-Fentanyl duties)? (5) If the subject religious marble statue and religious marble altar are eligible for duty- free treatment under subheading 9810.00.25, HTSUS, are they exempt from the assessment of additional duties pursuant to U.S. Note 2(v)(xiii)(1) to Subchapter III, Chapter 99, of the HTSUS, for products of China under subheading 9903.01.63, HTSUS, and subheading 9903.01.25, HTSUS (i.e., IEEPA-Reciprocal duties)? LAW AND ANALYSIS: Country of Origin When determining the country of origin for trade remedy purposes, 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 marble blocks undergo a substantial transformation, thereby, taking on a new name, character, and use. In China, the marble blocks are cut, chiseled, et

Country of Origin When determining the country of origin for trade remedy purposes, 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 marble blocks undergo a substantial transformation, thereby, taking on a new name, character, and use. In China, the marble blocks are cut, chiseled, etched, and machined using a CNC machine. Initial machining creates crude dimensions, general shapes, and rough figures. Subsequent CNC machining creates intermediary dimensions, shapes and figures. Final CNC 3 

machining creates refined pieces that will then undergo additional manufacture by hand. The provided documentation states, “[M]any of the individual pieces carved by the CNC machine did require additional decorations and embellishments that were carved by hand. Once the factory carved and finished all of the decorative pieces, they temporarily assembled all pieces to show photos to the customer for review. The Church identified numerous areas that needed to be revised and re-carved. Once the Church finally approved the altar, it was disassembled and packaged for shipment to the Church.” Upon completion of the various processing steps, the marble blocks have been substantially transformed into a custom marble religious statue and custom religious altar. Accordingly, the country of origin of the religious statue and religious altar for marking and duty purposes is China. Eligibility for duty-free treatment under