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 > 1992 HQ Rulings > HQ 0734162 - HQ 0734277 > HQ 0734257

Previous Ruling Next Ruling



HQ 734257


December 23, 1991

MAR-2-05 CO:R:C:V 734257 NL

CATEGORY: MARKING

Mr. Paul C. Gentzke, Branch Manager
John V. Carr & Son, Inc.
P.O. Box 268
Buffalo, NY 14201

RE: Country of Origin Marking - Unassembled Household Central Heating Boilers; 19 CFR 134.14; Separate Marking of Components Required.

Dear Mr. Gentzke:

This is in response to your letter of May 20, 1991, in which you requested a ruling concerning the country of origin marking requirements for an unassembled central heating boiler imported by your client, Viessmann Manufacturing Co., Inc., Waterloo, Ontario, Canada.

FACTS:

The article in question is the "Vitola" model central heating hot water boiler. Because of its size the boiler is not fully assembled until it is installed in a customer's home or business. The principal components consist of a boiler shell, insulation, boiler base, and safety header which are manufactured in Germany, and control parts and a burner manufactured in Canada. From Canada the components are imported together (except in the case of back ordered parts) for delivery to Viessemann's Rhode Island warehouse.

You ask that the importer be permitted to mark the boiler prior to shipping (presumably to the retail purchaser) by means of a single label which would read: "...assembled from components originating in Canada and Germany". This label would be placed in the vicinity of the boiler identification plate. It is your position that marking of the individual, unassembled components is unecessary. You request advice concerning the marking to be placed on the shipping containers.

Customs in Buffalo, the port of importation, has supplemented your submission with a memorandum indicating that it has disagreed with your position. Inspection of several importations demonstrated that the components which comprise a boiler were not bundled together. Instead, like components were packed on separate skids. The memorandum also noted that on some occasions the burners were not included in the shipments of components. Finally, upon examination of the German components and considering the processes performed upon them in Canada, Buffalo Customs determined that the German origin of these components had not been changed by substantial transformation. Buffalo Customs was of the opinion that under the circumstances, the major components were required to be marked separately, notwithstanding that they are used to assemble a complete boiler after importation. This office has been advised that current importations are being marked in this fashion.

We note that the importer has not claimed that the components are substantially transformed by assembly into complete boilers after importation into the U.S. Accordingly, we are not considering whether the components may be excepted from marking pursuant to a claim of substantial transformation under 19 CFR 134.35. It appears that the only issue for resolution is whether the proposed single marking on a label near the boiler identification plate is sufficient to satisfy the requirements of 19 U.S.C. 1304

ISSUE:

Must the unassembled boiler components be marked?

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 location 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. In the absence of any information or argument that the imported components ought to be treated as a unitary central heating boiler, and given the findings of Customs officials in the field that the components are imported separately (albeit perhaps in the same entry), we see no alternative to the approach taken by those officials. That is, the imported components from Germany and Canada are subject to country of origin marking requirements as separate articles.

This requirement is indicated by section 134.14, Customs Regulations (19 CFR 134.14), which provides for separate marking of articles which are usually combined after importation but before delivery to the ultimate purchaser in the U.S. The general thrust of the provision is to require that the origin of specific components be disclosed to the ultimate purchaser. The importer's proposal to mark only on the boiler plate with the words, "...assembled from components originating in Germany and Canada" is inconsistent with this requirement. Even if the imported components were imported together, separate marking of the components would be required absent a substantial transformation in the country of assembly. The ultimate purchaser is entitled to know the country of origin of each component and not merely that some are German and some Canadian.

In addition, to the extent some of the parts are imported separately or for use as replacement parts, such as the burners, separate marking would in any event be required.

In sum, it is the opinion of this office that the determination of Customs in Buffalo to require separate marking of these components is fully justified. We understand that T.D. 91-7 has been consulted to determine which parts may, as a matter of "common sense", be permitted to enter the U.S. without marking as insignificant parts of a set. We defer to the on-site determinations of Customs in Buffalo as to which parts fit within this category.

HOLDING:

A single label on the boiler identification plate stating that it is "...assembled from components originating in Canada and Germany" is not acceptable marking; rather, the major boiler components are required to be marked separately with their countries of origin.

Sincerely,

John Durant
Director, Commercial

Previous Ruling Next Ruling