The country of origin of paper napkins

 N307942 December 19, 2019 CLA-2-48:OT:RR:NC:N4:434 CATEGORY: Country of Origin Ms. Juliana Tumulty Samuel Shapiro and Company 1215 E. Fort Ave. Baltimore, MD 21230 RE: The country of origin of paper napkins Dear Ms. Tumulty: In your letter dated November 26, 2019, you requested a country of origin ruling on behalf of your client, Unique Industries, Inc. A sample of the finished article was provided for our review. The items under consideration are paper birthday napkins, measuring approximately 6.5” square. Per your submission, the bulk rolls of tissue paper are manufactured in China. While in China, the paper is printed with a design. The printed bulk rolls of paper are then shipped to Vietnam where they are hot-stamped with foil film (country of origin China) to embellish a portion of the printed design, cut to size, folded and packaged for retail. The sample provided to our office bears a birthday motif with one cupcake adorned with a lit candle printed in each of the four quadrants of the unfolded napkin. A multi-colored sprinkles pattern delineates the borders of each quadrant. Pursuant to Part 134, Customs Regulations (19 C.F.R. 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs Regulations (19 C.F.R. 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 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 United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986). In regards to the napkins, when the bulk printed tissue paper leaves China it is already pre-destined for use as party napkins by virtue of the type of paper and the specifically spaced and themed design printed upon it. Therefore, in Vietnam the tissue paper does not undergo a substantial transformation resulting in an item with a new name, character or use simply by foil stamping, cutting, folding and packaging. As support, we reference existing Headquarters ruling HQ W967997, 2006, in which the processes of printing, cutting and folding tissue paper in a second country did not result in a substantial transformation. Likewise, in HQ 557462, 1994, the operations of cutting and folding were found to be “merely finishing operations,” which, again, did not constitute a substantial transformation. The country of origin of the finished napkins 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 Charlene Miller at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division