The tariff classification of a potted artificial succulent arrangement from China.

N313065 July 27, 2020 CLA-2-67:OT:RR:NC:N4:415 CATEGORY: Classification TARIFF NO.: 6702.10.2000 Mr. Andy Cheong Nature's Mark, LLC 2358 East Walnut Avenue Fullerton, CA 92831 RE: The tariff classification of a potted artificial succulent arrangement from China. Dear Mr. Cheong: In your letter dated July 8, 2020, you requested a tariff classification ruling on behalf of you client, Walgreens Boots Alliance, Inc. An image was provided in lieu of a sample. The product under consideration is described in your submission as “Pink Ceramic Pot Succulent 4[inches] x 4[inches] x 5[inches],” Nature’s Mark item number CS2096 and Walgreens Item Code (WIC) number 590840 (“Pink Ceramic Pot Succulent”). The article consists of multiple artificial succulents, made of plastic, which are inserted and glued into a polystyrene foam base. This arrangement along with small stones are housed in a ceramic pot. It is designed for indoor decoration. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized Tariff Schedule of the United States (HTSUS) and are generally indicative of the proper interpretation of these headings. As per the ENs, heading 6702 covers “[a]rtificial flowers, foliage and fruit in forms resembling the natural products, made by assembling various parts (by binding, glueing, assembling by fitting into one another or similar methods).” Per your correspondence, you stated that the succulents are created by gluing or binding together. As this artificial arrangement would meet the requirements set forth by this heading, specifically it is assembled from various parts by binding or gluing, and is not subject to any of the listed exclusions, classification within heading 6702 would be considered appropriate. The applicable subheading for the “Pink Ceramic Pot Succulent” will be 6702.10.2000, HTSUS, which provides for “[a]rtificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit: [o]f plastics: [a]ssembled by binding with flexible materials such as wire, paper, textile materials, or foil, or by gluing or by similar methods.” The column one, general rate of duty is 8.4 percent ad valorem. 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 at https://hts.usitc.gov/current. In your request, you indicated that the country of origin for this article is Cambodia. We believe that this determination regarding the country of origin of the product is not correct. The provided documentation lists all the components as being from China, including the pottery, artificial succulents, polystyrene foam, and stone. The steps that follow in Cambodia include assembly of the arrangement components, labeling, and carton packing. Pursuant to Part 134, Customs Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 USC 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as: “[t]he 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.” 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. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). In order to determine whether a substantial transformation occurs when components are assembled into completed products, all factors such as the components used to create the product and manufacturing processes that these components undergo are considered in order to determine whether a product with a new name, character, and use has been produced. No one factor is decisive, and assembly/manufacturing operations that are minimal will generally not result in a substantial transformation. This office reviewed the provided documentation and is of the opinion that the “Pink Ceramic Pot Succulent” undergoes a simple assembly process in Cambodia, not a substantial transformation required to alter the country of origin of the components predestined to become the finished arrangement. Thus, the country of origin for the “Pink Ceramic Pot Succulent” is China. 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 Kristopher Burton at kristopher.burton@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division