N313066

N313066 July 27, 2020 CLA-2-67:OT:RR:NC:N4:415 CATEGORY: Classification TARIFF NO.: 6702.10.2000 Mr. Andy Cheong Nature's Mark, LLC 2358 East Walnut Avenue Fullerton, CA 92831 RE: The tariff classification of two potted artificial succulent arrangements from China. Dear Mr. Cheong: In your letter dated July 8, 2020, you requested a tariff classification ruling on behalf of you client, Walgreens Boots Alliance, Inc. Images were provided in lieu of samples. There are two products under consideration in your request. The first is described in your submission as “Two Tone Ceramic Greenery Purple 4.25[inches] x 4.25[inches] x 7.25[inches],” Nature’s Mark item number CS2475N-PP and Walgreens Item Code (WIC) number 597850 (“Two Tone Ceramic Greenery Purple”). The second is listed as “Two Tone Ceramic Greenery Yellow 4.25[inches] x 4.25[inches] x 7.25[inches],” Nature’s Mark item number CS2475N-YL and Walgreens Item Code (WIC) number 597854 (“Two Tone Ceramic Greenery Yellow”). These two arrangements are near identical, except for coloration, and both consist of multiple artificial succulents, made of plastic, which are inserted and glued into a polystyrene foam base. The arrangements along with small stones are each housed in a ceramic pot. “Two Tone Ceramic Greenery Purple” features purple flowers and a purple stripe at the base of the white pot. “Two Tone Ceramic Greenery Yellow” features yellow flowers and a yellow stripe at the base of the white pot. They are designed for indoor decoration. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized Tariff Schedule of the United States (HTSUS) and are generally indicative of the proper interpretation of these headings. As per the ENs, heading 6702 covers “[a]rtificial flowers, foliage and fruit in forms resembling the natural products, made by assembling various parts (by binding, glueing, assembling by fitting into one another or similar methods).” Per your correspondence, you stated that these succulents are created by gluing or binding together. As these artificial arrangements would meet the requirements set forth by this heading, specifically it is assembled from various parts by binding or gluing, and is not subject to any of the listed exclusions, classification within heading 6702 would be considered appropriate. The applicable subheading for the artificial succulent arrangements “Two Tone Ceramic Greenery Purple” and “Two Tone Ceramic Greenery Yellow” will be 6702.10.2000, HTSUS, which provides for “[a]rtificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit: [o]f plastics: [a]ssembled by binding with flexible materials such as wire, paper, textile materials, or foil, or by gluing or by similar methods.” The column one, general rate of duty is 8.4 percent ad valorem. 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/current. In your request, you indicated that the country of origin for these articles is Cambodia. We believe that this determination regarding the country of origin of these products is not correct. The provided documentation lists all the components as being from China, including the pottery, artificial succulents, polystyrene foam, and stone. The steps that follow in Cambodia include assembly of the arrangement components, labeling, and carton packing. Pursuant to Part 134, Customs Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 USC 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as: “[t]he 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.” A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation. This office reviewed the provided documentation and is of the opinion that the two artificial succulent arrangements “Two Tone Ceramic Greenery Purple” and “Two Tone Ceramic Greenery Yellow” undergo a simple assembly process in Cambodia, not a substantial transformation required to alter the country of origin of the components predestined to become the finished arrangements. Thus, the country of origin for both “Two Tone Ceramic Greenery Purple” and “Two Tone Ceramic Greenery Yellow” is China. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Kristopher Burton at kristopher.burton@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division