HQ 0731539 - Country of origin marking requirements applicable to imported drill bits - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1990 HQ Rulings > HQ 0731507 - HQ 0731864 > HQ 0731539

HQ 731539

November 27, 1989

MAR-2-05 CO:RC:V 731539 jd

CATEGORY: MARKING

Leonard M. Fertman, Esq.
2049 Century Park East
Suite 1800
Los Angeles, California 90067

RE: Country of origin marking requirements applicable to imported drill bits

Dear Mr. Fertman:

This is in reply to your letter of June 22, 1988, concerning the application of country of origin marking requirements to imported drill bits. We regret the delay in responding.

FACTS:

According to your submission, your client is an importer of oil well drill bits used to drill or excavate earth and rock in the search for underground oil and gas. Currently, bits are imported from Venezuela, Mexico and Italy, and importations from other countries are contemplated.

Drill bits are imported in boxes or crates, and you indicate that the bits remain in their original shipping containers until receipt at an oil field. At the field, the bits are removed from their containers for attachment to the drill stem of an oil or gas rig. You believe that the party receiving the bit at the oil or gas field is the ultimate purchaser of the bit. You request that the bits be excepted from individual marking and that marking of the containers of the bits be determined sufficient for satisfaction of marking requirements.

ISSUE:

Are the drill bits referred to above eligible for an exception to individual country of origin markng if they are received by ultimate purchasers in properly marked, unopened containers?

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), requires that, unless excepted, every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly and
permanently as the nature of the article (or 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. Section 134.1(d), Customs Regulations (19 CFR 134.1(d)), defines ultimate purchaser as "generally the last person in the U.S. who will receive the article in the form in which it was imported."

Section 134.32, Customs Regulations (19 CFR 134.32), sets forth a list of circumstances which except articles from the requirement that they be individually marked. One such circumstance of relevance to the drill bits under consideration is { 134.32(d), "[a]rticles for which the marking of the containers will reasonably indicate the origin of the articles".

Based on your description of the receipt and use of these drill bits, we agree with your belief that the party receiving a drill bit at an oil or gas field and installing the bit onto drilling machinery is the ultimate purchaser of the drill bit. Accordingly, the drill bits are excepted from individual country of origin marking provided Customs officials at the port of entry are satisfied that they will be received by ultimate purchasers in their original unopened containers which are properly marked to indicate country of origin, and that the bits will be used by the ultimate purchasers for the stated purpose and not otherwise used or sold. This determination is consistent with a recent ruling excepting louvers to be installed in buildings under construction from individual marking provided they were received by builders in properly marked containers (see 731855; November 3, 1989).

HOLDING:

The drill bits described above are excepted from individual country of origin marking provided Customs officials at the port of entry are satisfied that they will be received by ultimate purchasers in their original unopened containers which are properly marked to indicate country of origin, and that the bits will be used by the ultimate purchasers for the stated purpose and not otherwise used or sold.

Sincerely,

Marvin M. Amernick

Previous Ruling Next Ruling