The country of origin of footwear from Vietnam

N305895 September 19, 2019 OT:RR:NC:N:2:247 CATEGORY: COUNTRY OF ORIGIN Mr. Aaron Marx Crowell & Moring, LLP 1001 Pennsylvania Ave, NW Washington, DC 20004 RE: The country of origin of footwear from Vietnam Dear Mr. Marx: In your letter dated August 20, 2019, you requested a tariff country of origin ruling on behalf of your client the Acushnet Company. Specifically, you asked for a ruling on completed golf shoes imported from Vietnam from footwear parts manufactured in China/Taiwan. You state in your letter that Acushnet imports unformed leather uppers with open bottoms, insoles, midsoles, outsoles, and cleats from China and/or Taiwan. After importing the unformed upper into Vietnam, the upper is shaped, smoothed, heat activated, primed, cemented to the midsole and outsole. An insole and cleats are added to form a completed golf shoe. 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 courts have held that 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. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).Based on the information submitted, we find that the proposed manufacturing processes performed in Vietnam substantially transform the Chinese/Taiwanese originating components into a Vietnamese product. The shaping, lasting, and closing of the uppers, yielding formed uppers from unformed uppers, and subsequent attachment to the midsoles and outer soles, or midsoles/outsole units, create a new and different article of commerce with a distinct character and use that is not inherent in the components imported into Vietnam. Therefore, it is of the opinion of this office that the country of origin of the completed footwear is Vietnam. 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 Stacey Kalkines at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division