The country of origin of emergency roadside kits

N311306 May 13, 2020 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Country of origin Jason Carey Aspire Group NA Limited 1-498 Markland Street Markham, Ontario L6C1Z6 Canada RE: The country of origin of emergency roadside kits Dear Mr. Carey: In your letter dated April 17, 2020, you requested a country of origin ruling. There are two items at issue with this request, each described as emergency roadside kits. The kits are meant to be kept in the user’s vehicle and contain a variety of items that address a number of roadside emergencies. The first is identified as the Commuter kit, part number 103010, and contains jumper cables, a flashlight, batteries, a poncho, knit gloves, a first aid kit, and a registration card. These items are all stored together within the provided carrying case. The second kit is identified as the Deluxe Kit, part number 104010, and contains jumper cables, a tow strap, headlamp, batteries, fabric blanket, safety vest, knit gloves, a poncho, a first aid kit, and a registration card. Similarly, the items are stored together within a provided carrying case. Though classification is not a specific issue with this request, this office finds it prudent to establish the correct classification prior to proceeding with the country of origin analysis. Headquarters Ruling H031458 is instructive as it states that emergency kits should be classified according to their essential character as established under General Rule of Interpretation (GRI) 3(b), which states “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. The essential character will vary according to each kit’s contents.” The Harmonized Commodity Description and Coding System Explanatory Notes (ENs), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary of the terms presented within the Harmonized Tariff Schedule of the United States (HTSUS). The EN to Rule 3(b)(VIII) lists as factors to help determine the essential character of such goods: the nature of the materials or components, their bulk, quantity, weight or value, and the role of a constituent material in relation to the use of the goods. This office performed a careful examiniation of all constituent goods presented within the subject kit, keeping in mind the information set forth in the rules above. Further, we note that CBP has previously ruled that, in similar cases, the jumper cables have been found to impart the essential character of the finished kit. Specifically, we reference rulings N309750 and N291255, which consider emergency kits of very similar composition. As such, it is the opinion of this office that, for the purposes of establishing classification, the jumper cables impart the essential character of the completed emergency kits. The applicable subheading for the subject emergency roadside kits will be 8544.42.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors…: Other electrical conductors, for a voltage not exceeding 1000V: Fitted with connectors: Other: Other.” The general rate of duty will be 2.6% ad valorem. In your request, you describe multiple manufacturing and packaging scenarios for the subject kits. We note that the scenarios are identical for each version of the kit. In scenario one, the jumper cables are manufactured in Indonesia, where originating aluminum wire strands are spun, twisted, and insulated. Indonesian originating connectors are then added to each end to complete the cables. You state that the finished cables are then packaged together with the rest of the articles, all of Chinese origin, in either Indonesia or China. In the second scenario, the manufacture of the jumper cables occurs in Poland, where originating aluminum wire is spun, twisted, and insulated. Polish originating connectors are then added to each end to create finished jumper cables. The cables are then packaged together with the rest of the articles, all of Chinese origin, in either Poland or China. 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 test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). As previously established, it is our opinion that the jumper cables, in both scenarios, impart the essential character of the finished kit. As such, the origin of the jumper cables would determine the origin of the emergency kit. In each scenario presented, the jumper cables are manufactured, wholly of originating components, in either Indonesia or Poland, thus rendering the origin in that specific country. Any repackaging in either the originating country or China has no bearing on this analysis, as it would not transform the jumper cables into a new and different article of commerce with a name, character, and use distinct from the constituent articles. In scenario one, the Commuter Kit, part number 103010, and the Deluxe Kit, part number 104010, are considered products of Indonesia. In scenario two, the Commuter Kit, part number 103010, and the Deluxe Kit, part number 104010, are considered products of Poland. With regard to the application of Section 301 trade remedies, we note that goods originating from China under subheading 8544.42.9090, HTSUS, unless specifically excluded, are subject to the trade remedy under subheading 9903.88.03, HTSUS. As previously noted, the jumper cables impart the essential character of the finished set. As these items are not products of China, then Section 301 trade remedies would not apply. Regarding the marking of the subject emergency kits, Treasury Decision (T.D.) 91-7, published in Volume 25, Customs Bulletin and Decisions, at 6 (January 16, 1991), addressed, among other things, the application of country of origin marking requirements to sets. It was stated therein, at 16: . . . in most cases, the mere inclusion of an item in a collection will not substantially transform it into an article with a new name, character or use and, therefore, each item must be separately marked with its own country of origin. (Where the marking of the container will reasonably indicate the country of origin to the ultimate purchaser, the container may be marked instead of the individual articles. See 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d)). This result is consistent with the purpose of the marking statute since the ultimate purchaser’s decision as to whether to buy the set might be influenced by the country of origin of any of the items in the set, whether or not an item gives the set its essential character. Considering this, we find that the packaging of the kit in any foreign country mentioned does not substantially transform the individual components and the origin of all items within the kit must be identified. As such, all components in the kit must be individually marked with their country of origin provided such marking is visible through the retail packaging, or the packaging must identify the origin of each of these items. 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. 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 Luke LePage at luke.lepage@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division