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NY K88278

August 12, 2004
CLA-2-98:RR:NC:2:240 K88278


TARIFF NO.: 9801.00.1097; 4819.20.0040

Mr. Rino Jasper
Beauty-id Inc.
P.O. Box 940325
Houston, Texas 77094-7325

RE: The tariff classification of hair products in single packets of U.S. origin packaged in France

Dear Mr. Jasper:

In your letter dated July 24, 2004 you requested a tariff classification ruling.

You state that hair products of U.S. origin are sent to France for filling in single dose sachets. The hair sachets will be packaged in an outer retail carton. You have requested the classification and marking of these products, as well as the classification and marking of the empty packets and outer cartons. The empty packets and outer cartons are manufactured in France. You state that you will import shampoos, conditioners, hair masks, volumizing lotions, and other hair products.

Subheading 9801.00.10(EN), HTSUS, provides for the free entry of products of the U.S. that are exported and returned without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, provided the documentary requirements of section 10.1, Customs Regulations (19 CFR 10.1) are met. While some change in the condition of the product while it is abroad is permissible, operations, which either advance the value or improve the condition of the exported product render it ineligible for duty free entry upon return to the U.S. See Border Brokerage Co. v. United States, 65 Cust. Ct. 50, C.D. 4052, 314 F.Supp. 788 (1970), appeal dismissed, 58 CCPA 165 (1970).

In United States v. John V. Carr & Sons. Inc., 69 Cust. Ct. 78, C.D. 4377, 347 F.Supp. 1390 (1972, 61 CCPA 52, C.A.D. 1118, 496 F.2d 1225 (1974), the court stated that absent some alteration or change in the item itself, the mere repackaging of the item, even for the purpose of resale to the ultimate consumer, is not sufficient to preclude the merchandise from being classified in subheading 9801.00.10 HTSUS.

The hair products of U.S. origin that are packaged in single dose sachets and packaged in an outer folding carton and returned to the United States are not considered to have been advanced in value or improved in condition for the purposes of subheading 9801.00.1097, HTS. As a result, the hair products being products of the United States, may be eligible for entry as American Goods Returned. If the documentary requirements of 19 C.F.R. ยง10.1 are satisfied, the applicable subheading for these items will be 9801.00.1097, HTS, which provides for products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad...other...other. Products classified in subheading 9801.00.1097 are free of duty.

The applicable subheading for the empty outer cartons will be 4819.20.0040, Harmonized Tariff Schedule of the United States (HTS), which provides for folding cartons, boxes and cases, of non-corrugated paper or paperboard, other than sanitary food and beverage containers. The rate of duty will be free.

Your inquiry does not provide enough information for us to give a classification ruling on the empty sachets. Your request for a classification ruling should state whether the product is imported as sheets or as formed packages. Identify each layer (paper, metal foil, plastic). What type of metal. Provide breakdown by weight and value of each layer. When this information is available, you may wish to consider resubmission of your request. We are returning any related samples, exhibits, etc. If you decide to resubmit your request, please include all of the material that we have returned to you.

Perfumery, cosmetic and toiletry products are subject to the requirements of the Federal Food, Drug and Cosmetic Act, which is administered by the U.S. Food and Drug Administration. You may contact them at U.S. Food and Drug Administration, Office of Cosmetics and Colors, 5100 Paint Branch Parkway, College Park, MD 20740-3835 (202) 418 3412.

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 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 the exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs 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 U.S. 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 Part 134. A substantial transformation occurs when an article loses its identity and becomes a new article having a new name, character, or use. The mere repackaging of an article does not constitute a substantial transformation. The packaged hair products have not been substantially transformed in France. Therefore, the U.S. origin hair products are not substantially transformed by being repackaged in France and the country of origin of the finished hair products is the U.S.

Section 134.32(m), Customs Regulations (19 CFR 134.32(m)), provides that products of the U.S. exported and returned are exempted from country of origin marking requirements. Accordingly, since the country of origin of the repackaged hair products is the U.S., the hair product sachets are exempted from country of origin marking requirements under section 134.32(m).

Disposable paperboard cartons when imported empty are not normally required to be marked with their own country origin.

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 Stephanie Joseph at 646-733-3268.


Robert B. Swierupski

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