Since November 7th, 2005 artist canvas from People’s Republic of China is subject to antidumping duties of 264.09 percent, unless separate rate is applicable. International Trade Administration assigned case number A-570-899. If artist canvas is assembled in multiple countries that include China, one must be aware of intricacies that surround country of origin determination of this rate sensitive commodity. County of Origin Marking Requirements of Certain Artist Canvases publication in today’s Customs Bulletin issue proves that point. The key factor for the determination played the definition of “wholly assembled.”
Artist canvas in question is composed of 100 percent cotton which is woven and spun, and primed with gesso in India. It is then, in primed rolls, shipped to China where it is cut to size and stretched over a wooden frame.
Originally, CBP determined that the country of origin is India pursuant to section 102.21 (c) (4). CBP dismissed 102.21 (c) (2) because “no tariff shift occurs at all in this situation.” Section 102.21 (c) (3) was dismissed because subject merchandise is neither knit to shape, nor wholly assembled (in a single country).” In concluding the most important manufacturing and assembly process pursuant to 102.21 (c) (4), CBP outlined two aspects:
making of the fabric, itself, specifically, the weaving of the fabric in India
application of the gesso material
Then, CBP changed its position by arguing that the definition of “wholly assembled” was not applied properly. One-piece cotton canvas and a wooden frame satisfies “the § 102.21 (a) (6) requirement that there be at least two preexisting components.”
However, for ADD purposes, even knowing that the country of origin would be China, the product would still be outside the scope of the antidumping duty investigation. DOC federal register publication states the following:
“Additionally, we have determined that canvas woven and primed in India but cut and stretched in the PRC and exported from the PRC is not subject to the order covering artist canvas from the PRC.”
