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HQ 734671

October 8, 1992

MAR-2-05 CO:R:C:V 734671 AT

CATEGORY: MARKING

James P. Sullivan, Esq.
Sullivan & Lynch, P.C.
156 State Street
Boston, Massachusetts 02109

RE: Country of origin marking of imported metal picture frames to be assembled into picture frames; combining; substantial transformation

Dear Mr. Sullivan:

This is in response to your letter of May 27, 1992, on behalf of The HB Group, requesting a ruling on the country of origin of imported picture frames. A sample of a partially assembled picture frame and cost breakdowns were submitted for examination.

FACTS:

You state that The HB Group intends to import brass and silver-plated picture frames from China. You also state that the production of the picture frames will involve processing in two countries, Hong Kong and China. The metal portions of the picture frames, which constitute the actual frames, are manufactured in Hong Kong. They are made of either brass or silverplate and are available in a variety of sizes (3 X 5, 4 X 6, 5 X 7 and 8 X 10). The metal frames are shipped to China where they are polished, the brass frames are lacquered and the silverplate frames are plated. The metal frames are combined also in China with a piece of glass, plastic backs, velvet easels, hinges, and face paper to yield into finished picture frames.

You contend that the assembly and polishing operations performed in China do not constitute a substantial transformation, and therefore the country of origin of the finished imported picture frames is Hong Kong. ISSUE:

What is the country of origin of the imported metal picture frames that are processed under the conditions 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 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.

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 transform- ation in order to render such other country the "country of origin" within the meaning of Part 134. A substantial transformation occurs when articles lose their identity and become new articles having a new name, character, or use. Koru North America v. United States, 12 CIT 1120, 701 F.Supp. 229 (1988). The question of when a substantial transformation occurs is a question of fact to be determined on a case-by-case basis. Uniroyal Inc. v. United States, 3 CIT 220, 542 F.Supp. 1026 (1982), aff'd, 1 Fed.Cir. 21, 702 F.2d 1022 (1983).

In HQ 733037 (August 13, 1990), Customs ruled that imported wood frames were not substantially transformed when assembled into finished picture frames in the U.S. Customs stated that the imported wood frames are not only important to the finished product, but also are the very essence of the finished article in that the imported frame possesses all the essential qualities of the finished picture frame. Customs further stated that the physical appearance of the final product, which is a very important characteristic of a decorative item such as this, is determined by the imported wood frame.

Similarly, in this case, we find that the metal frames are not substantially transformed as a result of the assembly operations performed in China. Like the wood frames in HQ 733037, the imported metal picture frames possess all the essential qualities of the finished picture frame. Furthermore, the physical appearance of the final product, which is a very important characteristic of a decorative item such as these brass and silverplated picture frames, is determined by the imported metal frames. Accordingly, the country of origin of the finished metal picture frames is Hong Kong.

HOLDING:

The country of origin of imported brass and silverplated picture frames processed in the manner described above is Hong Kong.

Sincerely,

John Durant, Director
Commercial Rulings Division

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