The tariff classification, country of origin, and marking of colored pencils

N362828
July 16, 2026
CLA-2-96:OT:RR:NC:N4:462
CATEGORY: Classification; Origin; Marking
TARIFF NO.: 9609.10.0000
David M. Murphy GDLSK LLP 599 Lexington Avenue New York, NY 10022 RE: The tariff classification, country of origin, and marking of colored pencils Dear Mr. Murphy: In your letter dated July 2, 2026, you requested a classification, country of origin, and marking ruling on behalf of your client, International Stationery Company Limited. The products under consideration are 24 round colored pencils that each measure 7.0” x 0.3” with a 4-millimeter wax/clay core. The pencils are made of wood that is painted to match the color of the core, end cut, and sharpened. They do not include ferrules or erasers. The pencils will be packaged in a tin container with a grooved plastic insert. According to the information that you provided in your letter, raw Pulai wood from Indonesia is cut to shape and size to form slats and is then shipped in bulk to Vietnam, where they are grooved to fit the pencil cores. In Vietnam, pencil cores are produced using materials sourced from China. Wax is melted and mixed with clay, pigments, and binders, then the mixture undergoes grinding, cooling, pulverizing, aging, lead extrusion, and drying to produce fully formed pencil cores. The cores are inserted into the grooved slats with glue, clamped together, and allowed to dry. Once dry, the glued slats are cut and shaped into individual pencils, then sanded, polished, and painted to match the core color. They are sharpened for use, and a logo is stamped onto the pencil barrel. The pencils are then packaged in a tin container of Chinese origin and shrink wrapped. Per your submission, the containers will be marked “Made in Vietnam,” and you ask if the individual pencils can be exempt from country of origin marking as they will be sealed in the outer container which will be marked and seen by the ultimate purchaser.

CLASSIFICATION You suggest classification of the colored pencils under subheading 9609.10.0000, Harmonized Tariff Schedule of the United States (HTSUS). We agree. The applicable subheading for the colored pencils will be 9609.10.0000, HTSUS, which provides for “Pencils (other than those pencils of heading 9608), crayons, pencil leads, pastels, drawing charcoals, writing or drawing chalks and tailors’ chalks: Pencils and crayons, with leads encased in a sheath.” The rate of duty will be 14 cents per gross plus 4.3 percent ad valorem. ORIGIN AND MARKING When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter 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). Additionally, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 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 the marking laws and regulations. Based on the facts you have submitted regarding the production of the colored pencils, such operations have effected a substantial transformation resulting in a new name, character and use of the non-originating components into the finished pencils. Accordingly, the country of origin of the colored pencils is Vietnam. Regarding marking, an article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs is satisfied that the article will remain in its container until it reaches the ultimate purchaser and if the ultimate purchaser can tell the country of origin of the pencils by viewing the retail container in which it is packaged, the individual pencils would be excepted from marking under this provision. Thus, the marking of the tin containers with “Made in Vietnam” is acceptable and the individual pencils will not need to be marked. 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 and Border Protection 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, please contact National Import Specialist Sandra Walia at [email protected].
Sincerely,
(for) James P. Forkan Director National Commodity Specialist Division