The tariff classification of a moist tissue dispenser and lid from China

N215126 May 23, 2012 CLA-2-39:OT:RR:NC:N4:421 CATEGORY: Classification TARIFF NO.: 3923.50.0000; 3924.90.5650 Mr. Andrew Yaros 930 Via Mil Cumbres #47 Solana Beach, CA 92075 RE: The tariff classification of a moist tissue dispenser and lid from China Dear Mr. Yaros: In your letter dated April 23, 2012, you requested a tariff classification ruling. Four samples were included with your request and are being returned as you requested. Item 1 is a disposable high density polyethylene (HDPE) canister that acts as a packaging container for a 50 count disposable roll of perforated flushable biodegradable moist tissues. The canister measures 5.25 inches in height by 3.5 inches in diameter. Item 2 is a disposable polypropylene lid designed to fit on top of the canister and allow for individual dispensing of the moist tissues. Item 3 is a reusable dispenser designed to house the HDPE canister with lid. The dispenser is made of electroplated (metallized) acrylonitrile butadiene styrene (ABS) plastic molded in a cylindrical shape, approximately 8.5 inches in height by 5.875 inches in diameter. The dispenser is intended to be used as a substitute for a standard toilet paper dispenser. It is not designed to be permanently attached to the wall. Rather, it has two arms with exterior circular tabs that fit into a conventional toilet paper dispenser fixture. The arms are squeezed together slightly and the tabs are secured into the recesses that normally accommodate a telescoping toilet roll spindle. The inside of the arms have depressions into which a standard telescoping toilet roll spindle, not included with the dispenser, can be secured. In this way, the toilet paper roll hangs in its ordinary location while the moist towel dispenser hangs below it. The dispenser has an opening on one side into which the canister containing the moist tissues will be inserted. There is a slot at the bottom of the dispenser that is designed to act as a vent. Item 4 is a dry tissue or towelette that represents the substrate that will be used in the manufacture of the moist tissues that will be inserted into the canister. The canister, item 1, and the roll of flushable moist tissues, represented by item 4, will be manufactured in the United States. The samples of items 1 and 4 were submitted to illustrate how the complete item functions. The disposable lid, item 2, and the refillable dispenser, item 3, will be manufactured in China. The canister, item 1, is marked to show Grinnell, Iowa. The lid and dispenser are not marked with the country of origin. Only the dispenser, item 3, is intended for long term use. The applicable subheading for the canister lid will be 3923.50.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for stoppers, lids, caps and other closures, of plastics. The rate of duty will be 5.3 percent ad valorem. The applicable subheading for the electroplated ABS moist tissue dispenser will be 3924.90.5650, HTSUS, which provides for …other household articles…of plastics: other: other…other. The rate of duty will be 3.4 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 on World Wide Web at http://www.usitc.gov/tata/hts/. You have also inquired about the classification of the product if sold as a beginner set that would include a combination of the reusable ABS dispenser and the disposable container with moist tissues. In this scenario, the tissues and canister would still be made in the United States and the set would be assembled in the United States. The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking In the scenario that you describe, the imported components will be assembled together after importation with domestically produced components, and thus are not imported put up in a manner suitable for sale directly to users without repacking. Therefore, the imported components would not be considered to be a set and each component would be classified in its own subheading. You have also requested a ruling on the country of origin marking requirements. 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 U.S.C. 1304. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35. Neither the lid nor the dispenser is marked with the country of origin. Please note that the assembly of the four items together in the United States does not substantially transform the dispenser into a new and different article. At the time of importation the dispenser must be permanently, legibly and conspicuously marked to indicate China as the country of origin. Section 134.24(b), Customs Regulations [19 C.F.R. §134.24(b)], provides that disposable containers, not designed or capable of reuse, which are imported empty and packed and sold in multiple units, need not be individually marked with the country of origin. The marking requirements may be met by marking the outermost container that reaches the ultimate purchaser. The firm that packages the moist tissues into the disposable canister and then seals the canister with the disposable lid is considered to be the ultimate purchaser of the lids. Therefore, the lids may be excepted from individual marking provided the shipping containers in which they are imported are marked to indicate the country of origin of the lids, and the Customs officers at the port of entry are satisfied that the shipping containers will reach the ultimate purchaser unopened. If in a future scenario the disposable canister is also manufactured in China, the canister may also be excepted from individual marking provided the shipping containers in which they are imported are marked to indicate the country of origin of the canisters, and the Customs officers at the port of entry are satisfied that the shipping containers will reach the ultimate purchaser unopened. The canisters are currently manufactured in the United States and are marked with the name of a domestic location. If in a future scenario the canisters are made in China, such a statement is only acceptable when the contents of the canister are of United States origin. The marking would still be acceptable if there is sufficient evidence to satisfy the Customs officers at the port of entry that the canisters will be used only to package goods made in the United States. 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 Joan Mazzola at (646) 733-3023. Sincerely, Thomas J. Russo Director National Commodity Specialist Division