A country of origin determination of “sticky note” pads.

N315231 October 30, 2020 CLA-2-48:OT:RR: NC:4:434 CATEGORY: Country of Origin TARIFF NO.: 4820.10.2020 Mr. David Newman David Newman, Attorney at Law 45 Village Gate Way Nyack, NY 10960   RE: A country of origin determination of “sticky note” pads. Dear Mr. Newman: In your letter, dated October 13, 2020, you requested a country of origin ruling on behalf of Staples, Inc. A detailed description of the processing operations and photos of the item were submitted for our review. The finished items will be small note pads of “sticky notes” in various colors and sizes. The manufacturing process is as follows: 36.5 inch width jumbo paper rolls made in Japan or Indonesia, depending on the color of the “sticky notes,” are shipped to China to undergo further processing. In China, the paper is unspooled and, as it runs through the machinery, an application of Taiwan origin chemical primer and the patented Taiwan origin glue will be added to the back side of the paper. A Taiwan origin chemical release coating is applied to the front of the paper. The paper is then re-rolled and cut into very large sheets. The resultant jumbo pads will be jogged and collated into the page counts that apply to the finished product, including the Taiwan origin liner or backing sheet at the base of the note pad. The jumbo pads are then cut into smaller units by a very large guillotine cutter. Finally, the “sticky notes” are bundled and packaged for export. Part 134, U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements of 19 U.S.C. § 1304. Title 19, Section 134.1(b) defines “country of origin” 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; ….” A substantial transformation occurs “when as a result of a process an article emerges, having a distinctive name, character or use” from the original material subjected to the process. Belcrest Linens v. United States, 741 F.2d 1368, 1372 (Fed. Cir. 1984). If the manufacturing process is a minor one, which leaves the identity of the imported article intact, a substantial transformation has not occurred. See Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff’d per curiam, 702 F.2d 1022 (Fed. Cir. 1983). You reference Headquarters ruling H306091, dated February 18, 2020, that described an identical manufacturing operation for adhesive note pads. This ruling concluded that the jumbo rolls of paper had not undergone a substantial transformation. It states, “…the operations in Taiwan constitute “mere finishing operations.” The adhesive notes are “essentially the same product at different stages of manufacture…The final product is essentially a smaller size paper with chemical release coating applied to the front and chemical primer and glue on the back that is not changed into a new separate and distinct article of commerce. While the glue applied to the back allows the paper to be stuck on a surface, the operation of gluing paper together at the top is essentially the same, and the paper still remains paper.” In light of the conclusions drawn in H306091, the country of origin of the finished “sticky note” pads will be either Japan or Indonesia, the country of origin for the jumbo roll of paper. You assert that the finished note pads are classifiable in 4820.10.2020, Harmonized Tariff Schedule of the United States (HTSUS), as “Memorandum pads, letter pads and similar articles.” We agree. The rate of duty will be Free. You further inquire about the applicability of additional tariffs on products of China. Effective July 6, 2018, the Office of the United States Trade Representative imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f), HTSUS.  For additional information see “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710).  Products of Japan or Indonesia origin, classifiable in 4820.10.2020, HTSUS, are not subject to the additional tariffs imposed on goods of Chinese origin enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f), HTSUS.   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 Charlene Miller at charlene.s.miller@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division