Country of origin and marking of fishing waders with boots attached from China

N307378 December 4, 2019 OT:RR:NC:N:2:247 CATEGORY: Country of Origin, Marking Mr. Paul Vroman DHL Global Forwarding 2660 20th Street Port Huron, MI 48060 RE: Country of origin and marking of fishing waders with boots attached from China Dear Mr. Vroman: In your letter dated November 15, 2019, on behalf of your client Orvis Company, you requested a country of origin and marking ruling determination on fishing waders including attached boots. Cost and manufacturing information were included with your submission. In Taiwan, the Orvis Item #2TXX Men's Boot Fishing Wader is constructed from rubber boots with attached textile felt outer soles sourced from China, and combined with fishing waders constructed from materials sourced from Hong Kong, Taiwan, and China. With regard to your request for the appropriate country of origin for the finished waders, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: The “country of origin” is defined in 19 CFR 134.1(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. The courts have held that 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. See United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). According to Treasury Decision 93-88, the "Upper" is part of the shoe above the separate sole or that portion of the shoe which covers the sides and top of the foot if there is no separate sole. An "Upper" can cover the whole leg, thigh, hips, and chest (e.g., fishermen's chest waders) or can consist simply of straps, laces or thongs (e.g., Roman sandals). The rubber/plastics boots with felt outer soles from China are considered to be essentially complete. Fabric is laminated, cut, stitched with other components sourced from China, Japan and Taiwan, and added to the substantial upper portions (shafts) of the boots. The boots alone, and the finished product, the “fishing waders,” (boots with improved uppers), are considered footwear for tariff purposes. Therefore, the country of origin is China. You also inquired as to the correct country of origin marking for the imported finished fishing waders with attached boots. The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. The Orvis Item #2TXX Men's Boot Fishing Wader should be marked “Made in China” in a conspicuous manner to indicate the country of origin. 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 Stacey Kalkines at stacey.kalkines@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division