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HQ 731748
May 25, 1989

MAR-2-05 CO:R:C:V 731748 KG

CATEGORY: MARKING

Shirley A. Waltos
Karl Schroff & Associates, Inc.
Route 6
Box 384-17
Springfield, Missouri 65803

RE: Country of origin marking requirements for key rings

Dear Ms. Waltos:

This is in response to your letter of September 7, 1988, requesting a ruling on whether section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), requires country of origin marking of a metal key ring/chain which is attached to a flat plastic box. The flat plastic box is made in the U.S. and attached to the key ring/chain in the U.S.

FACTS:

Your client imports metal key ring/chains. In the U.S. the metal key ring/chain is attached to a flat plastic box with a small metal ring. The box is made in the U.S. Some of the boxes contain a prophylactic (which is also made in the U.S.).

ISSUE:

Whether attaching a small plastic box to a metal key ring/chain substantially transforms the article and therefore excepts the completed article from the country of origin marking requirements of 19 U.S.C. 1304.

LAW AND ANALYSIS:

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 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. 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." United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.35, Customs Regulations (19 CFR 134.35), creates an exception from the marking requirement for an article where the article is to be used in the U.S. in the manufacture of a new article having a new name, character, or use. If substantial transformation occurs, then the manufacturer is the ultimate purchaser and the consumer need not be informed of the country of origin.

In the instant case, the manufacturing process that occurs in the U.S. is a minor assembly operation rather than a substantial transformation. The imported article is a completed key ring which, after being attached to a small plastic box, is sold for use as a key ring. Although a key ring with a box attached to it might be preferable to some consumers, one would not purchase this article if they didn't intend to use it as a key ring. There is no change in the physical qualities of the imported key ring/chain. The fundamental character of the product does not change. The name of the product does not change either. The attachment of the small plastic box to the chain in the U.S. is a minor assembly operation which would not require any significant skill,time or cost. See Uniroyal Inc. v. U.S., 542 F. Supp. 1026, 3 CIT 220 (1982). Based on the above factors, no substantial transformation has occurred. A retail consumer purchasing a key ring must be informed of the country of origin of the key ring/chain.

HOLDING:

Attachment of a small plastic box to a key ring/chain does not substantially transform the assembled article into a new article having a new name,character or use. Therefore, pursuant to 19 U.S.C. 1304, the assembled article must be marked with the country of origin of the key ring/chain.

Sincerely,

Marvin M. Amernick
Chief, Value, Special Programs

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