HQ 0733632 - Country of origin marking requirements for imported mop hardware; substantial transformation; 19 CFR 134.35 - United States International Trade Commision Rulings

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HQ 733632

August 13, 1990

MAR 2-05 CO:R:V:C 733632 RSD

CATEGORY: MARKING

Mr. Patrick H. Monahan
The Thomas Monahan Company
202 N. Oak Box 250
Arcola, Illinois 61910

RE: Country of origin marking requirements for imported mop hardware; substantial transformation; 19 CFR 134.35

Dear Mr. Monahan:

This is in response to your letter of June 18, 1990, requesting a binding ruling regarding the country of origin marking requirements of mop hardware imported from Taiwan.

FACTS

The Thomas Monahan Company imports mop hardware from Taiwan and sells it to mop manufacturers. The manufacturers attach the hardware to a wooden mop handle with rivets. The manufacturer usually also attaches a yarn mop head to the hardware, but some mop handles and hardware are sold without the mop heads so that the customer can add his own mop head. The cost of the mop hardware is $.75, and the cost of the handle is $.60. The mop head costs $1.20, and the rivets cost $.02.

ISSUE:

Does the attachment of mop hardware to a wooden handle and in some cases a mop head constitute a substantial transformation?

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 its 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; C.A.D. 104 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines "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 the marking laws and regulations. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed. Accordingly, the manufacturer or processor who converts or combines constituent materials into different articles will be considered the ultimate purchaser of the constituent materials. If the manufacturer is the ultimate purchaser, the imported article is excepted from marking (see section 134.35, Customs Regulations, 19 CFR 134.35).

A mop is basically comprised of two components: a mop head and a mop handle. Customs has determined that neither of these components is substantially transformed by their attachment to one another and that each piece must be separately marked to indicate its country of origin. See HQ 731398, October 4, 1989 and HQ 732896, April 5, 1990.

The mop handle generally consists of a long wooden or metal piece used to hold the mop and hardware (metal or plastic) which is used to attach the mop head. The country of origin of the mop handle is generally considered to be the country where the long wooden or metal piece is made. The hardware is said to lose its separate identity when it is attached to the handle and becomes an integral part of that handle. The long piece is considered to be the major component of the handle. Thus, in HQ 731398, supra Customs ruled that imported plastic pieces were substantially transformed when attached with a U.S. made metal handles. However, in 732896, supra, Customs ruled that imported handles were not substantially transformed when they were assembled with the U.S. hardware. In this case, it is the hardware that is imported. A U.S. made wooden handle is attached after importation. In accordance with the above discussion we find that the hardware loses it separate identity and become an integral part of the U.S. made wooden handle when it is attached. As such, the mop manufacturer substantially transforms the hardware into an integral component of a new and different article i.e., a mop handle. Thus the mop manufacturer is the ultimate purchaser of the mop hardware. Upon importation, only the containers for the mop hardware must be marked to show the country of origin of the mop hardware.

However, the attachment of the handle to the mop head does not result in a substantial transformation. If the mop head is of foreign origin, it must be marked to indicate its country of origin.

HOLDING:

When the mop hardware is attached to the wooden the handle it loses its separate identity and is substantially transformed. Accordingly the individual mop hardware is excepted from the country of origin marking and the only the mop hardware's containers must be marked with the country of origin of the mop hardware upon importation.

Sincerely,

Marvin M. Amernick

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