The tariff classification and country of origin determination of a paper party banner.

N308620 January 9, 2020 CLA-2-95:OT:RR:NC:N4:425 CATEGORY: Classification TARIFF NO.: 9505.90.4000 Ms. Marissa Curran Samuel Shapiro & Company, Inc. One Charles Center 100 North Charles St., Ste. 1200 Baltimore, MD 21201 RE: The tariff classification and country of origin determination of a paper party banner. Dear Ms. Curran: In your letter dated November 22, 2019, on behalf of your client Unique Industries, Inc., you requested a tariff classification and country of origin ruling. Manufacturing and country of origin of all materials has been included with your request. The samples submitted with your request are “Happy Birthday” banners composed of printed paper letters with plain backs that are joined together with small grommets. You refer to the paper as “cardboard” but it is more similar to cardstock. The banners measure approximately four feet in length, each block letter measures 4.5” in height. There is a string loop at either end to facilitate hanging. The temporary decoration will be imported packed in a polyethylene (PE) bag with a printed header card, for one-time use as a disposable birthday party decoration. It is noted that your sample header cards are printed with “Made in Vietnam.” You suggest correct classification for this item would be 9505.90.9060, Harmonized Tariff Schedule of the United States (HTSUS), but this code does not exist in the 2019 HTSUS. The applicable subheading for the “Happy Birthday” banners will be 9505.90.4000, HTSUS, which provides for “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Other: Confetti, paper spirals or streamers, party favors and noisemakers; parts and accessories thereof.” The rate of duty will be Free. 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 the World Wide Web at https://hts.usitc.gov/current. You are also requesting a country of origin determination presenting two scenarios. Per your submission, the first scenario, details importing preprinted, and pre-cut sheets of “cardboard” from China. The pre-cut letters are separated from the preprinted sheets, removing the scrap. The letters are then connected by punching in grommets, imported from China. The string loops are tied to each end using string imported from China. The banners are packed in PE bags purchased in Vietnam and stapled with a preprinted header card imported from China. Barcodes, shipping cartons and packing tape purchased in Vietnam are used to pack the banners for shipment to the United States. Per your submission, the second scenario, details importing plain, unprinted “cardboard” from China. The “cardboard” will be printed in Vietnam. The letter shapes will then be die-cut into the “cardboard.” The pre-cut letters are separated from the preprinted sheets, removing the scrap. The letters are then connected by punching in grommets, imported from China. The string loops are tied to each end using string imported from China. The banners are packed in PE bags purchased in Vietnam and stapled with a preprinted header card imported from China. Barcodes, shipping cartons and packing tape purchased in Vietnam are used to pack the banners for shipment to the United States. Photos of these processes were submitted with your request with the exception of the printing process. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. 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 this part. A substantial transformation occurs when articles lose their identity and become articles having a new name, character or use. We find that the first scenario does not effect a substantial transformation in Vietnam. The operations performed in Vietnam are merely assembly, finishing and packing operations. Therefore, it is the opinion of this office that the country of origin of the banners in this scenario is China. We find that the second scenario which includes the printing of the plain cardstock and die-cutting of the letters as well as the assembly, finishing and packing. In this scenario, we find the substantial transformation occurs when the letters are die-cut in preparation for assembly, followed by finishing and packing. Therefore, it is the opinion of this office that the country of origin of the banners in this scenario is Vietnam. 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 Sandra Carlson at sandra.carlson@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division