The country of origin of eyebrow pencils and eyebrow powder pencils.

N309439 March 2, 2020 OT:RR:NC:N3:140 CATEGORY: Country of Origin Ms. Kayla Owens Stein, Shostak, Shostak, Pollack, & O'Hara 865 S. Figueroa Street, Suite 1388 Los Angeles, CA 90017 RE: The country of origin of eyebrow pencils and eyebrow powder pencils. Dear Ms. Owens: In your letter dated February 02, 2020, you requested a country of origin ruling determination on two cosmetic products on behalf of, Elegant Best Investment Limited (“Elegant Best”). The merchandise under consideration are eyebrow pencils and eyebrow powder pencils. Specifically you ask about the extrusion technical process as it pertains to Country of Origin. You provided an outline of the processing and packaging that occurs in each respective country. This process is used for two items-eyebrow pencils and eyebrow powder pencils. For both items, the bulk raw materials are of South Korean origin. The raw materials are weighed and stored in South Korea. Next, the raw material is melted, mixed, and ground. They are then bulk mixed, extruded, shaped into lead and cut in South Korea. It is then inspected and stored. The material will be fed into the extrusion machine which shapes the material and dries it before it is cut and heated. It is then placed in a refrigerator and subsequently cut again. It is stored and then shipped from South Korea to China. No additional ingredients are added to either product in China. In China, the lead or powder is inserted into barrels for automatic assembly, inspection, and cleaning. The containers are plastic and aluminum, or just aluminum. Both products are in the form of a retractable pencil. The containers are then packed into cartons, batch coded and packaged for retail sale and shipping. You state that this process is similar to the process described in NY J86656 (7/24/03). In that ruling, Customs found that bulk cosmetics consisting of wet/dry powder of U.S. origin that were shipped to China for packing did not undergo a substantial transformation in China; therefore, they remained products of the United States. 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. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 USC 1304. 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. 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). You state that based on your review of the processes that occur in South Korea and China, as well as previous Customs rulings cited herein, you believe that the country of origin for both products is South Korea. We agree. The mixed and prepared bulk material, extruded, shaped into lead and cut, used to make eyebrow pencils and eyebrow powder pencils based on the description of processing performed above, does not undergo a change in name, character, or use in China in the process of filling and retail packaging described in your submission. We note that specific product numbers are not identified in your submission. At the time of Entry/Entry Summary you may be requested to verify the information on raw materials, sources or value, etc., for any specific shipment or product. It is our opinion that the Country of Origin for marking purposes of the eyebrow pencils and the eyebrow powder pencils will be South Korea. 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 Paul Hodgkiss at Paul.Hodgkiss@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division