HQ 0732330 - Country of origin marking requirements for granite and marble products - 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 0731902 - HQ 0732330 > HQ 0732330

HQ 732330
June 28, 1989

MAR-2-05 CO:R:C:V 732330 KG

CATEGORY: MARKING

Siegel, Mandell & Davidson, P.C.
655 Fifteenth Street, N.W.
Suite 300
Washington, D.C. 20005

RE: Country of origin marking requirements for granite and marble products

Dear Sirs:

This is in response to your letter of April 10, 1989, requesting a ruling regarding the country of origin marking requirements for granite and marble products.

FACTS:

The merchandise to be imported is granite and/or marble tiles, slabs, and memorial monuments ("markers") produced in Portugal from granite and marble blocks quarried in the People's Republic of China ("PRC").

The granite and marble blocks quarried in the PRC will have a size of between 1 and 2 cubic meters, with typical dimensions of .8m x 1.2m x 1m. The blocks are extracted with hammers, chisels and winches. It takes about 16 hours to extract each block. Once the blocks are extracted, they are sent to Portugal to be used to make tiles, slabs or markers. No processing will be performed on the bolcks prior to their shipment to Portugal.

TILES

The tiles will measure 12 x 12 x 3/8 inches and will be intended for use as decoration on exterior and interior building walls and floors. The first step in producing the tiles involves cutting each block into slabs by means of one cut with a diamond- tipped wire or circular gang saw having approximately 40 separate cutting edges; thus, approximately 40 slabs are cut from each block simultaneously. The second step involves cutting each rough slab lengthwise into multiple 12 inch wide strips by means of a diamond-tipped radial blade. The third step involves polishing one face of each strip by means of coarser-to-finer diamond-tipped pads with application of water and resin. The fourth step involves cutting across each strip at 12-inch intervals with a diamond-tipped radial blade to result in the final dimensions of the tiles. Finally, in most cases the four top edges of the tiles are bevelled. It takes approximately 10 hours to cut each granite block into slabs and about 12 minutes per tile to finish each tile. On a per block basis, it takes approximately 80 hours to process the granite tiles and 60 hours to process the marble tiles.

SLABS

The granite and marble slabs will have a thickness of between less than 1 inch and 2 inches. The length and width of each slab will vary. The slabs are intended for use as counter tops and as interior facing on bathroom walls and around fireplaces. The first step involves cutting each block into slabs by means of one cut with a diamond-tipped wire or circular gang saw. The time required for this process is about 10 hours. The second step involves use of a diamond-tipped radial blade to cut each rough slab along each of its four edges so as to create an even shape. In some cases the slabs will be sold in this form and in other cases the outside surface will be polished and bevelled. The total time required to convert one block into finished slabs is about the same as for the tiles.

MARKERS

The markers will be produced from granite only and will consist of flat slabs as well as bases, middle sections and pedestals. The typical product will measure 1 foot x 2 feet x 4 inches. The first step involves cutting each block into 4-inch thick slabs. The resulting slabs are then cut down further to the required size by means of a diamond-tipped radial blade. A third step applied to most markers involves polishing one face in the same manner as the tiles.

ISSUE:

What is the country of origin of slabs, tiles and markers produced in Portugal from blocks of granite or marble quarried in the PRC.

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 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines the 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 this part."

A substantial transformation occurs when articles lose their identity and become new articles having a new name, character or use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at 270 (1940), National Juice Products Association v. United States, 10 CIT____ , 628 F. Supp. 978 (Ct. Int'l Trade 1986), Koru North America v. United States, 12 CIT ____, 701 F. Supp. 229 (Ct. Int'l Trade 1988).

Customs considered whether raw hardwood plywood processed into wall paneling was substantially transformed in ruling letter HQ 728364 (August 12, 1985). Customs concluded that the wood was substantially transformed after the plywood was filled, grooved, sanded and numerous layers of liquid coating were applied. The decorative finish was considered the most important feature of the finished product which substantiallly changed the fundamental nature of the imported plywood. "The manufacturing process changes the imported product from a raw material with several uses to factory finished wall paneling which is used exclusively for decorative purposes."

The facts in this case present even more evidence that there has been a substantial transformation than HQ 728364. The amount of finishing and processing done in Portugal is more time- intensive and complex than the factory processing done in the plywood case. A block of granite or marble is raw material that could have many potential uses after being processed. On the other hand, tiles, slabs and markers are finished goods that have very distinct and particular uses for which they are designed. For instance, a block of granite or marble could not be substituted for tiles in constructing a bathroom, could not be substituted for a slab in designing a marble table, or substituted for a marker in a cemetary.

A block of granite or marble processed into a tile, slab or marker undergoes a change in name. Tiles, slabs and markers also have a different character than blocks of granite or marble; each article has a different size dimension, different finishing and a different appearance. The process of making tiles, slabs and markers from granite and marble blocks takes a good deal of time and skill. You advanced other arguments to support your contention that substantial transformation takes place in Portugal which we have not addressed because the facts and arguments discussed present a convincing argument in favor of substantial transformation occurring in Portugal.

The extensive manufacturing process performed in Portugal substantially transforms the marble and granite blocks into tiles, slabs and markers. Therefore, for the purposes of 19 U.S.C. 1304, the country of origin of the imported markers, slabs and tiles is Portugal. This ruling is rendered in regard to that statute only.

HOLDING:

Blocks of granite and marble quarried in the PRC and processed into tiles, slabs and markers in Portugal are considered to be from Portugal for the purposes of 19 U.S.C. 1304.

Sincerely,

Marvin M. Amernick
Chief, Value, Special Programs

Previous Ruling Next Ruling