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HQ 733835


February 8, 1991
MAR-2-05 CO:R:C:V 733835 NL

CATEGORY: MARKING

Judith K. Matta
William F. Joffroy, Inc.
P.O. Box 21041
Phoenix, AZ 85036

RE: Country of Origin Marking - Knocked-down Freight Containers; 19 CFR 134.32(g); 19 CFR 134.34.

Dear Ms. Matta:

This is in response to your letters of April 11 and May 30, 1990, addressed to the Regional Commissioner of Customs, New York Region,in which you request rulings as to the classification and and country of origin marking applicable to the imported components of an unassembled metal container. These requests have been referred to Customs Headquarters. The determination as to the classification of the imported components was issued on October 4, 1990, as HQ 087497. The present ruling determines the applicable country of origin marking requirements and exceptions.

FACTS:

As sold by the importer to ultimate purchasers, the finished article is a container system called the "Unicon" which is capable of being disassembled, or knocked-down, for more economical return to the shipper and subsequent reuse. The imported components, which are the subject of this ruling, consist of unplated steel frame, lid, and gate assemblies, which originate in Czechoslovakia, and channels and cleats originating in Australia. After importation these parts are zinc plated, and then assembled into the complete "Unicon" container article by the addition of six 4' x 8' plywood panels which you state will be of U.S. origin. This assembly includes bolting, screwing, and notching and routing the plywood panels. Thereafter, the assembled panels are affixed to wooden pallets using the cleats and channels. The completed Unicon exceeds 300 liters in capacity, and may be used to ship dry solid goods or, with the insertion of a plastic bag, to ship liquids or dry granular goods.

The Unicon container is shipped in knocked-down condition on pallets to its purchasers, who can prepare them for use with a simple assembly.

In HQ 087497 we determined that the imported components were to be classified in subheading 7326.90.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of iron or steel.

It is indicated that the zinc plating process in the U.S. will obliterate any country of origin markings on the steel components, and you request that those articles be excepted from country of origin marking pursuant to 19 CFR 134.32(g), which provides an exception from country of origin marking for articles to be processed in the U.S. by the importer in such a manner that country of origin marking would be obliterated, destroyed, or permanently concealed. You have stated that the importer would be willing to provide country of origin marking as to the steel components by means of stenciling on the plywood panels, where additional branding and assembly information will also appear.

ISSUE:

May the imported steel components be excepted from country of origin marking?

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.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Among the exceptions from country of origin marking is 19 CFR 134.32(g), which excepts "articles to be processed in the U.S. by the importer or for his account otherwise than for the purpose of concealing the origin of such articles and in such a manner that any mark ...would necessarily be obliterated, destroyed, or permanently concealed." On the basis of the facts presented, we agree that the subject imported steel components (frame and gate assemblies, lids, hinge assemblies, lids, cleats, and channels) are eligible to be excepted from country of origin marking, since the zinc plating after importation would obliterate any country of origin marking appearing on the steel components at the time of importation.

It is our opinion, however, that the country of origin of the articles must be disclosed to their ultimate purchaser, the purchaser of the "Unicon" containers. Here, it is our opinion that the inclusion of the imported unplated metal parts in the Unicon does not substantially transform them into articles of
another country, and they retain their status as articles originating in Czechoslovakia and Australia. Accordingly, even though the imported articles are excepted from marking at the time of importation under 19 CFR 134.32(g), the processed articles are required to be marked. See, HQ 733676 (December 6, 1990)(hot finished steel bars imported into the U.S. for cold finishing were not substantially transformed, and were required to be marked with their country of origin after processing in the U.S. even though excepted from marking at the time of importation pursuant to 19 CFR 134.32(g)). The marking of their origin can be accomplished, as you suggest, by marking the articles' countries of origin on the plywood panels by means of stenciling. Such marking might read, "Frame Product of Czechoslovakia, Channels and Cleats Products of Australia", or words to similar effect.

An importer who proposes to mark articles after importation may, pursuant to 19 CFR 134.34, request that the the district director approve any marking done after importation, giving the district director such samples and certifications as the latter may find necessary to assure that the marking will be in accordance with the requirements of 19 U.S.C. 1304 and Part 134. The procedures set forth in 19 CFR 134.34 are appropriate in this instance.

HOLDING:

The articles of steel which serve as components of the knocked-down container are not required to be marked with their country of origin at the time of their importation, as any marking would be obliterated by U.S. processing. 19 CFR 134.32(g). However, the articles must be marked at the time they reach the ultimate purchaser in the U.S. by means of stenciling on the panels of the containers or another method of marking acceptable to Customs. Such marking should be performed under the supervision of the district director as set forth in 19 CFR 134.34.

Sincerely,

John Durant, Director
Commercial Rulings Division

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