The country of origin of Liquid Brow Pencil

N311148 May 11, 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 Liquid Brow Pencil Dear Ms. Owens: In your letter dated February 02, and April 8, 2020, you requested a country of origin ruling determination on various cosmetic products on behalf of, Elegant Best Investment Limited (“Elegant Best”). The merchandise under consideration is called the the Liquid Brow Pencil. You specifically ask for a determination on the country of origin of the product. In South Korea bulk raw material from various source countries is inspected, weighed, mixed to formulate the fill material, labeled, and placed into bulk storage. The bulk raw material is then shipped from South Korea to China. No additional ingredients are added to the bulk raw material in China. In China, the bulk raw material is used to fill the brow pencils. You state that the pencil body, caps and packing materials are of Chinese Origin. The pencil barrels and caps are made of plastic and/or aluminum. You indicate that, Elegant Best seeks a ruling from Customs on the country of origin of Liquid Brow Pencils. The subject products are processed in South Korea, and then assembled, and put into retail containers and packaging, in China. Elegant Best resubmitted this request based on Customs’ request for additional information regarding the raw materials for this product. 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, that you believe that the country of origin for these products is South Korea. We agree. The mixed and prepared bulk material, used to make Liquid Brow Pencils, based on the description of processing performed above, does not undergo a change in name, character, or use in China. 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 Liquid Brow Pencil 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