HQ 0731902 - Country of origin marking requirements applicable to imported eyeglass frames - United States International Trade Commision Rulings

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HQ 731902

October 11, 1989

MAR-2-05 CO:R:C:V 731902

CATEGORY: MARKING

Michael P. Maxwell, Esq.
Stein Shostak Shostak & O'Hara
Suite 1240
3580 Wilshire Boulevard
Los Angeles, California 90010-2597

RE: Country of origin marking requirements applicable to imported eyeglass frames

Dear Mr. Maxwell:

This is in reply to your letter of November 7, 1988, concerning the application of country of origin marking requirements to eyeglass frames from Italy manufactured from Korean and Italian components.

FACTS:

In Korea, nickel-silver wire from Germany or Japan is twisted and soldered to form unfinished components for eyeglass frame fronts and temples. In their condition as exported from Korea, the components are incapable of withstanding the corrosive effects of perspiration.

In Italy, individual components are inspected and, when necessary, excess solder is removed. The components are then shaped according to style specifications. The shaping insures that the finished frames will be capable of holding lenses. Fronts and temples are partially assembled at this point so they will fit onto a loom for cleaning. Cleaning involves application of detergent, ultrasonic cleaning, an electrolyzing rinse and a neutralizing rinse.

Cleaned, partially assembled frames are now ready for plating. Two layers of nickel plating are applied. The plating enhances the appearance of the frames, protects against bruising, and also provides anti-corrosive protection. Next, one layer of gold plating is applied to further enhance the aesthetic appeal of the frames, add more corrosion protection and provide a base for later painting.

Plated, partially assembled frames are cleaned again and painted with either syringes or spray guns. A three stage baking process fixes the paint. Painted, partially assembled frames
passing quality control inspection are then silk screened with a company name, frame size and frame color. Assembly of the frames is completed by attachment of temple ends and nose pieces of Italian origin. Plastic demonstration lenses, also of Italian origin, are inserted so ultimate purchasers of the frames will see how they look with lenses. The frames are then folded around a backing card and placed in a plastic bag.

You believe the frames are of Italian origin in that a substantial transformation of all components takes place by virtue of the processing and manufacture performed in that country. A sample finished frame was submitted showing "FRAME ITALY" in white letters on the inside right temple. The card in the plastic bag also is imprinted "FRAME ITALY."

ISSUE:

Are eyeglass frame components subjected to the processing and manufacturing in Italy described above substantially transformed so as to make Italy the country of origin for purposes 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 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.

In defining "country of origin", { 134.1(b), Customs Regulations (19 CFR 134.1(b)), states in regard to articles produced with components from two or more countries that, "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'..." Whether a substantial transformation has occurred depends upon a comparison of the article before the processing which is claimed to effect such transformation and the article after the processing. It is a well established principle of customs law that in order for a substantial transformation to be found, an article having a new name, character or use must emerge from the processing. See United States v. Gibson-Thomsen Co. Inc., 27 C.C.P.A. 267, C.A.D. 98 (1940),

Customs has previously ruled on the marking consequences of various levels of processing performed to eyeglass frame components. In ruling 728504 (October 15, 1985), Customs found that "the assembly of imported frames does not constitute a substantial transformation of the item sufficient to make the importer the ultimate purchaser and that in such case, country of
origin marking would be required on the imported fronts and temples." Recognizing that each case must be decided on its own facts, the ruling continued, "[w]here there is additional processing performed (i.e. more that [sic] mere assembly of the fronts and temples) Customs might find a substantial transformation, depending on the particular circumstances involved."

Customs ruling 710338 (July 17, 1979; published as C.S.D. 80-43), involved the importation of frame components from Italy in a neutral and unfinished condition. The fronts and temples were subjected to multi-step processing operations including cleaning, trimming, machining, engraving, milling, attachment of hinges, drilling of holes, heating and reshaping, and assembly. After assembly, a multi-step dyeing process was used to color the frame. Citing the fact that the fronts and temples could not be used in their condition as imported except by a producer of frames, and that the components must undergo substantial adjustment to accommodate lenses and fit the human face, Customs determined that a substantial transformation of the components took place. The processor was the ultimate purchaser of the components.

It is the opinion of this office that the processing performed by your client is sufficiently similar to that described in C.S.D. 80-43 to warrant the same determination, i.e., that the processing and manufacturing constitute a substantial transformation. The fronts and temples as imported from Korea are not useable, and it is by virtue of the Italian processing that the frames are made ready to accommodate lenses and fit the human face. Additional support for this decision comes from the anti-corrosive properties added by the plating in Italy, an essential step in preparing the frames for their ultimate use.

HOLDING:

Eyeglass frames produced in Italy as described above from Korean and Italian components are products of Italy for country of origin marking purposes. The marking on the sample frames submitted, "FRAME ITALY", on the inside right temple in white lettering on a contrasting background, satisfies the requirements on 19 U.S.C. 1304.

Sincerely,

Marvin M. Amernick

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