HQ 0733785 - Country of origin marking of imported castings; 19 CFR 134.46; 19 CFR 134.36(b). - United States International Trade Commision Rulings

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HQ 733785

November 19, 1990

MAR-2-05 CO:R:C:V 733785 KG

CATEGORY: MARKING

Mr. E. K. Salls
Amber/ Booth Company, Inc.
P.O. Box 2083
Houston, Texas 77252-2083

RE: Country of origin marking of imported castings; 19 CFR 134.46; 19 CFR 134.36(b).

Dear Mr. Salls:

This is in response to your letter of September 10, 1990, requesting a country of origin ruling regarding imported castings.

FACTS:

You import aluminum top plates and bottom housings from Mexico to be incorporated into products that absorb the vibration in rotating equipment such as fans and air handling units. A sample casting was submitted for examination. The sample has the abbreviation "Tex." in the left hand corner of the casting. You stated that the bottom plates of the imported castings have the phrase "Amber/ Booth, Houston, Texas" marked in them. You have been marking either the shipping containers or the bottom of the bottom housing with the phrase "Made in Mexico." The imported castings are component parts that are sold only as part of the finished product.

ISSUE:

What is an acceptable country of origin marking for the imported aluminum castings described above?

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. The Court of International Trade stated in Koru North America v. United States, 701 F.Supp. 229, 12 CIT (CIT 1988), that: "In ascertaining what constitutes the country of origin under the marking statute, a court must look at the sense in which the term is used in the statute, giving reference to the purpose of the particular legislation involved. The purpose of the marking statute is outlined in United States v. Friedlaender & Co., 27 CCPA 297 at 302, C.A.D. 104 (1940), where the court stated that: "Congress intended 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."

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.35, Customs Regulations (19 CFR 134.35), states that the manufacturer or processor in the U.S. who substantially transforms the imported article will be considered the ultimate purchaser of the imported article within the contemplation of section 304(a) of the Tariff Act of 1930, as amended, and the article shall be excepted from marking. The outermost containers of the imported articles shall be marked. A substantial transformation occurs when articles lose their identity and become new articles having a new name, character or use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at 270 (1940), National Juice Products Association v. United States, 10 CIT ___, 628 F.Supp. 978 (CIT 1986), Koru North America v. United States, 12 CIT ___, 701 F.Supp. 229 (CIT 1988).

If the words "United States," or "America," the letters "U.S.A.," any variation of such words or letters, or the name of any city or locality in the U.S., or the name of any foreign country or locality other than the country of origin, appears on an imported article in such a way as to be misleading to the ultimate purchaser, special marking requirements are triggered. Section 134.46, Customs Regulations (19 CFR 134.46), requires that in such case, the name of the country of origin must appear legibly, permanently, and in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin must appear preceded by "Made in,""Product of," or other words of similar meaning.

The first issue presented is whether the imported castings are substantially transformed in the U.S. so as to be excepted from country of origin marking in accordance with 19 CFR 134.35. It is not possible for Customs to rule on this issue without further information about the final product and a description of the processing that is done in the U.S.

However, even if the imported castings were excepted from country of origin marking pursuant to 19 CFR 134.35, marking the castings with either the abbreviation "Tex." or the phrase "Houston, Texas" would be potentially misleading markings within the ambit of 19 CFR 134.46. If the castings include any references to Houston, Texas or the abbreviation "Tex." or a similar abbreviation, 19 CFR 134.46 requires that the phrase "Made in Mexico" or a similar phrase appear in close proximity to the reference to Houston, Texas or abbreviations for the state of Texas. See also 19 CFR 134.36(b).

HOLDING:

If the castings include any references to Houston, Texas or the abbreviation "Tex." or a similar abbreviation, 19 CFR 134.46 requires that the phrase "Made in Mexico" or a similar phrase appear in close proximity to the reference to Houston, Texas or abbreviations for the state of Texas.

Sincerely,

Marvin M. Amernick
Chief, Value, Special Programs

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