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The classification and country of origin of Model Three wine preservation systems
N325952 June 2, 2022 CLA-2-84:OT:RR:NC:N1:102 CATEGORY: Classification, and Origin TARIFF NO.: 8481.80.5090 Kristina Marie Barry GDLSK LLP 599 Lexington Avenue FL 36 New York, New York 10022 RE: The classification and country of origin of Model Three wine preservation systems Dear Ms. Barry: In your letter dated May 6, 2022, you requested a tariff classification and country of origin ruling on behalf of your client, Coravin, Inc. Descriptive information was provided with your request. The products under consideration are two Coravin wine preservation systems: the Model Three SL, the Model Three Plus. It is noted that New York ruling N320917, dated September 2, 2021, previously ruled on the classification of the Model Three SL and the Model Three Plus wine preservation systems, which were to be repackaged after being imported. In this submission, it is stated that these systems are packaged complete, and ready for retail sale at the time of importation. The systems allow users to enjoy and preserve wine. The Model Three SL primarily consists of a Coravin Model Three device, a box sleeve, a needle clearing tool, a bottle sleeve, and a two argon gas capsules. The Model Three Plus primarily consists of a Coravin Model Three device, an aerator, two screw caps, a box sleeve, a needle clearing tool, a bottle sleeve and two argon gas capsules. The Coravin Model Three SL and Model Three Plus devices, which are primarily of plastic material, are designed to be handheld. These devices use compressed argon gas to allow a user to pour wine from a wine bottle. With the Model Three device, the user aligns the SmartClamps™ over the neck of the bottle and pushes down on the handle in one fluid motion, thereby manually inserting a needle through the cork and into the wine bottle. The needle, when inserted into an unopened wine bottle, facilitates the flow of argon gas from the device into the bottle, and wine flows out of the bottle for serving when the bottle is upturned. The user depresses a hand-operated trigger that activates a valve, which is designed to regulate the flow of compressed argon gas (stored in a disposable cartridge within the device body) through a pressure regulator valve and into the wine bottle. Argon gas is then sent into the bottle, forcing the pressurized wine to flow up the needle to the pouring spout. Releasing the trigger stops the flow of argon gas into the bottle, and the bottle is returned to an upright position to stop pouring. The aerator packaged in the Model Three Plus aerates the wine. The stainless-steel needle clearing tool is used to clear cork from the inside of the needle. The screw cap seals the bottles. The screw cap is assembled in Indonesia, starting with a silicone plug being pressed into the body. The liner is placed, followed by the insert being pressed on top. The bottle sleeve protects the bottle and prevents contamination of glass should the bottle break. The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation ("GRIs"), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely based on GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs will be applied, in the order of their appearance. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS. GRI 3 (a) states in part when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the good. GRI 3(b) is applicable when goods are, prima facie, classifiable under two or more headings, and have been put up in sets for retail sale. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. In this instance, the Coravin Model Three handheld devices, which are considered to be valves, impart the essential character of the Models Three SL and Three Plus systems when considering their role and bulk. Therefore, in accordance with GRI 3(b), the applicable subheading for the Coravin Model Three SL and Model Three Plus systems will be subheading 8481.80.5090, HTSUS, which provides for Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Other appliances: Hand operated: Of other materials: Other. The general rate of duty will be 3 percent ad valorem. In your submission, you also request a country of origin determination for the two Coravin wine preservation systems: the Model Three SL, and the Model Three Plus. The assembly processes submitted apply to both hand-held devices. In addition, you explain that the Coravin devices primarily consist of the body assembly, the clamp assembly, the capsule cup assembly, and the needle assembly. The body assembly is made-up of key structural components, a regulator subassembly, and a valve subassembly. The valve assembly, which regulates the flow of compressed argon gas and controls the flow of wine, is assembled in Indonesia. The assembly of the valve sub-assembly is completed in Indonesia. The Chinese O-rings are assembled to the stem. The Indonesian spout is pressed to the Indonesian valve body. The stem with O-rings is inserted into the Indonesian valve body with spout. Springs are placed over the Chinese stem; an Indonesian spring retainer is screwed in place and an Indonesian stem coupling is attached. The regulator assembly is assembled in Indonesia. First, the lance subassembly is constructed by assembling a U.S. filter and Chinese O-ring to a Chinese lance. The process goes on by assembling and press-fitting a Chinese O-ring, a seal retainer, a Japanese ball, a Chinese ball spring to each other, which is followed by adding an Indonesian piston with a Chinese depressor and Chinese O-ring. Afterwards, a Chinese O-ring seal, a Japanese Ball, a Chinese ball spring, O-ring, washer, and steel cap are pressed in place. The piston with the O-ring, spring, and Chinese cap are then pressed on. The components are screwed in place. The clamp assembly is assembled in Indonesia. It begins by adhering a Chinese clamp back pad to an Indonesian clamp body with heat and pressure. The left and right clamp arms of Indonesian origin are assembled to the clamp body using heat. Springs from China and bearings are then positioned into the clamp bodies. The pivot tubes of Chinese origin are then positioned and screwed into place. The Indonesian capsule cup assembly is assembled in Indonesia. This assembly process begins by manually adding the Chinese load cell disc and cup to the Indonesian capsule cup. The components are screwed in place. An Indonesian needle guide insert, and lock-out plunger are assembled to each other to from the needle guide assembly. During the final assembly, which occurs in Indonesia, a U.S. manufactured gas hose and lock ring are assembled to the regulator. In sequence, a regulator seal, regulator, sleeve, and Indonesian platform are installed. The gas hose is then connected to the valve assembly and interconnected to an Indonesian trigger and coupling. The Indonesian head and nose covers are installed on the assembly and screwed in place. A friction stop and spring are assembled and inserted. The assembly process continues by sliding the clamp assembly onto the body assembly and then, the capsule cup assembly is screwed in place. Afterwards, the n