A country of origin determination on dental and medical products

N345195 January 24, 2025 CLA-2-48:OT:RR:NC:4:434 CATEGORY: Country of origin Bryan Shields NuCare LLC 4201 Sierra Point Drive Sacramento, CA  95834 RE:      A country of origin determination on dental and medical products Dear Mr. Shields: In your letter dated January 15, 2025, you requested a country of origin determination for the purposes of applying current trade remedies under Section 301.  A detailed description of the products and manufacturing operations were submitted for our review. The finished goods to be imported are certain non-sterile, disposable, paper goods used either as “bibs” or “towels,” depending on the situation.  The goods are rectangular sheets, which come in various sizes, colors, and configurations.  When used in dental procedures, the product is referred to as a “bib” and is hooked around the patient’s neck using a “bib chain” or piece of paper with adhesive on each end (not imported with the bibs).  The bibs absorb saliva and prevent moisture from soaking through to the patient’s clothing.  When used in medical procedures, it is referred to as a “towel” and is used as a mat on the surface of a table to isolate medical instruments from the surface of the table.  Some of the bibs/towels are composed of simply three-ply tissue paper, while most consist of a layer or layers of tissue paper embossed with a layer of polyethylene (PE) plastic, as described below. You state that the paper portion provides absorption, while the plastic layer provides a fluid barrier.  The bibs/towels are packaged 500 or 800 pieces per case. Item 1:  19” by 13”, 3 plies tissue paper (18gsm) (no plastic layer) Item 2:  19” by 13”, 1 ply tissue paper (28gsm) and 1 ply PE plastic Item 3:  19” by 13”, 2 plies tissue paper (18gsm) and 1 ply PE plastic Item 4:  19” by 13”, 3 plies tissue paper (18gsm) and 1 ply PE plastic Item 5:  18” by 13”, 2 plies tissue paper (18gsm) and 1 ply PE plastic   You requested a country of origin determination for the purposes of applying current trade remedies under Section 301 duties.  In your letter, you describe a scenario wherein parent rolls of wood pulp tissue paper, measuring 1100mm wide, are made in Indonesia.  PE plastic sheeting is manufactured in South Korea.  The paper and PE sheeting are then sent to China, where they will be further manufactured into bibs/towels, as summarized here: In China, For Item 1, the jumbo rolls of paper (3 ply) are simply cut to length and width and packaged.  For Items 2, 3, 4, and 5, the jumbo rolls of paper (whether 1, 2, or 3 plies) are embossed with a layer of PE plastic on their back, cut to length and width, and packaged.  You state that the PE plastic piece is one centimeter smaller than the paper along the edge to aid in separating the items from each other in the box.   When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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). For Item 1, the bib/towel constructed solely of three-ply paper, the paper did not undergo a substantial transformation in China by merely being cut to size and packaged.  The country of origin is Indonesia. For Items 2, 3, 4, and 5, the parent rolls of paper from Indonesia and PE plastic from South Korea are substantially transformed when joined together in China, where the bibs/towels take on the additional functionality of preventing fluid soak-through not possessed by the items made solely of paper.  When imported into the United States, the country of origin of these products for Section 301 purposes will be China. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request.  This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1).  This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect.  In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.  Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 charlene.s.miller@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division