HQ 0733837 - Country of origin marking requirements for imported hacksaw blade blanks; grinding teeth 19 CFR 134.35; substantial transformation - United States International Trade Commision Rulings

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HQ 733837

February 5, 1991

MAR-2-05 COR:C:V 733837 RSD

CATEGORY: MARKING

Ms. Susan Parker
Schenkers Forwarders, Inc.
965 Norfolk Square
Norfolk, Virginia 23502

RE: Country of origin marking requirements for imported hacksaw blade blanks; grinding teeth 19 CFR 134.35; substantial transformation

Dear Ms. Parker:

This is in response to your letter dated October 2, 1990, requesting a binding ruling on the country of origin marking for imported hacksaw blade blanks.

FACTS:

Your customer, the Disston Company (Disston), intends to import hacksaw blade blanks from China. The blanks will be punched from steel to the correct length and width for processing in the U.S. In the U.S., further processing will grind teeth on to the blade blanks, file sharpen the teeth, print and package the product for sale at retail. Disston requests a ruling that the marking of the container, in which the blades are imported, in lieu of marking the blades themselves is acceptable. A sample of a blade blank and two sample finished hacksaw blades were submitted with the ruling request.

ISSUE:

What are the country of origin marking requirements for imported hacksaw blade blanks which are processed in the U.S.?

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. In such circumstances the U.S. manufacturer is the ultimate purchaser. The imported article is excepted from individual marking and only the outermost container is required to be marked. (see 19 CFR 134.35).

Customs ruled in HQ 740134, February 6, 1987, that the grinding of geometrically shaped teeth on to blank saw blades and other minor processing substantially transformed the blank saw blade into a new article of commerce. It was noted that without the teeth the finished item could not function and that the creation of the teeth determines the essential character of the finished blade. In this case, Disston will also be grinding the teeth on to the imported hacksaw blade blanks along with other minor processing. Based on HQ 740134, we conclude that the processing of the blanks in the U.S., is a substantial transformation, and in accordance with 19 CFR 134.35, Disston would be considered the ultimate purchaser of the blade blanks. Therefore, the individual blank blades are excepted from country of origin marking. Only the outer containers in the which the blade blanks are imported must be marked with the country of origin.

HOLDING:

The processing of imported hacksaw blade blanks by grinding teeth into them is a substantial transformation and the U.S. processor is the ultimate purchaser. Accordingly, the imported blanks are excepted from individual country of origin marking provided: the district director is satisfied that the blanks will be used only in the manner described above and not otherwise sold, the outermost cartons in which the blades are imported are marked with the country of origin, and the ultimate purchaser will receive the blades in this carton.

Sincerely,

John Durant, Director

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