HQ 0730940 - Country of origin marking requirements for imported metal castings - United States International Trade Commision Rulings

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HQ 730940

June 1, 1990

MAR-2-05 CO:R:C:V EAB

CATEGORY: MARKING

Mr. David P. Schulingkamp
M.G. Maher & Company, Inc.
442 Canal Street
New Orleans, LA 70130

RE: Country of origin marking requirements for imported metal castings

Dear Mr. Schulingkamp:

This is in response to your letter of October 29, 1987 re- questing a ruling on country of origin marking requirements for imported metal castings. We regret the delay in responding.

FACTS:

Metal castings are imported by your client, who uses them solely as component parts in the manufacture of American Water Works Association valves. You have provided photographs of castings and finished valves. You state that the castings are never used as saleable parts, and that the attachment of the castings to the valves substantially transforms the castings. The manufacturing processes to which your client subjects the imported castings includes drilling, boring, threading, hydro- static testing, painting and assembly. The castings are of no use in their imported condition except to your client in the process of the further manufacturing of large valves.

ISSUE:

Whether imported metal castings subjected to further manufacturing processes and used as component parts of valves are substantially transformed such that the castings are 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, subject to specified exceptions, that every ar- ticle of foreign origin (or its container) 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 per- mit, 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 arti- cle. The primary purpose of the country of origin marking sta- tute 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 the product, if such marking should influence his will." United States v. Friedlaender & Co., 27 CCPA 297 (1940), as quoted with approval in National Juice Products Association v. United States, 10 CIT 48, 628 F. Supp. 978 (1986).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of and exceptions to 19 U.S.C. 1304. Pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d), an exception from individual marking is applicable where the marking of a container of such article will reasonably indicate the country of origin of such article to the ultimate purchaser. The "ultimate purchaser" is defined in 19 CFR 134.1(d) as generally the last person in the U.S. who will receive the article in the form in which it was imported. It is specifically provided in 19 CFR 134.35 that a manufacturer may be the ultimate purchaser if he converts or combines an imported article into an article with a new name, character or use. In such case, the article shall be excepted from marking under 19 U.S.C. 1304(a)(3)(D), and the outermost containers of the imported articles shall be marked in accordance with Part 134.

Customs has previously ruled that as the result of a manufacturing process consisting of the combination of im-ported follower rings with other U.S. components, the follower rings lose their separate identity and become integral components of a new and different article of commerce. The manufacturer who assembled the follower rings into flanged coupling adaptors was held to be the ultimate purchaser, and the imported follower rings were excepted from marking. Only the outermost containers of the follower rings had to be marked, see Customs Ruling HQ 080135, dated June 29, 1987; see also Customs Ruling HQ 731307, dated February 23, 1990.

In the described circumstances, the manufacturing process to which your client subjects the imported follower rings results in new and different articles of commerce in which the follower rings lose their separate identities and become integral compo- nents of large valvess; therefore, pursuant to 19 CFR 134.35, your client is the ultimate purchaser of the imported castings.

HOLDING:

Imported castings which are to be used with other U.S. components in the manufacture of large valves are excepted from individual marking pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.35, provided: (1) the containers in which the castings are imported are properly marked to indicate the country of origin of the castings; (2) Customs officers at the port of entry are satisfied that these castings will reach the valve manufacturer in the original marked containers in which the castings are imported; and, (3) the castings will only be used in the manufacture of valves as described above and not otherwise sold. Statements to this effect must be submitted for each entry for which this exception applies.

Sincerely,

Marvin M. Amernick, Chief

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