The country of origin of wood balusters

N301520 November 21, 2018 MAR-2-44:OT:RR:NC:N1:130 CATEGORY: Country of Origin Ms. Val Holtrop Worldwide Logistic Solutions, LLC 18 Golden Wheat Lane Wrightstown, WI 54180 RE: The country of origin of wood balusters Dear Ms. Holtrop: In your letter dated October 31, 2018, you requested a country of origin ruling on behalf of your client, RW Specialties. You provided a detailed scenario for our review. The article under consideration is wood balusters. You outline a scenario wherein lumber originating in the United States, Switzerland, and Indonesia is sent to China for further manufacturing into balusters. The woods to be used include oak, alder, cherry, hard maple, hemlock, and poplar. In the country of harvest, the trees are felled, sawn into lumber, and air- and kiln-dried. The dried lumber is then sent to China, where it is made into balusters by processes of cutting, sawing, sanding, laminating, turning, final sanding, and painting (when necessary). The felled logs are classifiable in heading 4403, Harmonized Tariff Schedule of the United States (HTSUS), the dried lumber in 4407, HTSUS, and the final balusters in 4418, HTSUS. Pursuant to Part 134, Customs Regulations (19 CFR Part 134), Section 134.1(b), the country of origin is the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to a foreign article in another country must effect a substantial transformation in order to render the final product a good of the other country. In China, the lumber undergoes a substantial transformation into a new and commercially distinct product, having a new name and different function – a baluster - than the lumber from which they were formed. This substantial transformation is shown in the change from lumber of heading 4407, HTSUS, to balusters of heading 4418, HTSUS. Because this substantial transformation occurs in China, the country of origin of the balusters is China. Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings. Products of China classified under subheadings within heading 4418, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to the 4418 subheading. 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 on World Wide Web at https://hts.usitc.gov/current. 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 Laurel Duvall at laurel.duvall@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division