HQ 0734859 - Country of Origin Marking of Imported Lamp Parts; Substantial Transformation; Domestic Assembly; Essential Character; 19 CFR 134.35. - United States International Trade Commision Rulings

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HQ 734859
March 22, 1993

MAR-2-05 CO:R:C:V 734859 ER
CATEGORY: MARKING

Mr. Peter B. Lange
President
Legacy Lamp Company
P.O. Box 1567
Round Rock, TX 78680/2551

RE: Country of Origin Marking of Imported Lamp Parts; Substantial Transformation; Domestic Assembly; Essential Character; 19 CFR 134.35.

Dear Mr. Lange:

This is in response to your letter dated September 29, 1992, in which you request a ruling regarding the country of origin marking requirements for imported lamp parts which are assembled into lamps after importation into the United States.

FACTS:

Legacy Lamp is an assembler/manufacturer of electric portable lamps. Approximately 35 percent of Legacy Lamp Company's ("Legacy") lamp parts are imported from countries such as Taiwan, China, Korea, Mexico and Canada. The parts involved in the assembly include items such as bases, pipes, sockets, felt, glass middles, brass castings, caps, etc. Legacy manufactures approximately one hundred varieties of lamps using both foreign and domestic components. Additionally, Legacy manufactures the lamp shades to be attached to the lamps after assembly. Legacy is seeking an exception to country of origin marking for the imported lamp parts which are used in the assembly of finished lamps subsequent to their importation. This request for an exception to marking does not apply to those lamps which are imported as unassembled lamps in kits. By telephone conversation on February 10, 1993, Legacy informed Customs that Legacy does not import any fully assembled or semi-assembled lamps nor does Legacy import assembled lamp shades.

ISSUE:

What are the country of origin marking requirements for imported lamp parts which are assembled subsequent to importation with domestic parts to create finished lamps?

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 United States 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 United States 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. 1034.

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 United States. 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 imported article is excepted from marking. The outermost containers of the imported articles, however, shall be marked. 19 CFR 134.35.

Although no written description of the assembly process was provided with your submission, based on previous rulings involving lamps we are aware that such an assembly involves processes such as joining the parts with screws, nuts and bolts, gluing and soldering. In analogous circumstances, in HQ 730837 (June 10, 1988), Customs held that the assembly of a typewriter from numerous parts was a substantial transformation of the parts and the country of assembly was the country of origin of the typewriter. The assembly involved the same sort of processing as that performed in the instant case. Also like the instant case, the components were imported into the country of assembly in a finished condition and were physically joined to the emerging new article, losing their separate identities.

In HQ 734503 (July 20, 1992), a ruling involving the marking requirements for a cut crystal piece used in making an electric lamp, Customs found that the crystal piece did not lose its identity by virtue of its assembly into a lamp and that, accordingly, the country of origin of the crystal had to be identified in the marking legend on the assembled lamp. By contrast in the instant case, no single component imparts the essential character of the lamp and indeed, the lamp's essential character is non-existent until the various components are assembled.

The instant situation is also different from one in which the domestic assembly involves the piecing together of partially assembled lamps because the essential character of the partially assembled lamps would already be that of a lamp and hence, no substantial transformation would result. Similarly, an exception to marking would not apply where lamps are imported as kits because such kits already contain the essential character of the lamp, although in unassembled form.

Based on these considerations, and provided the containers in which the imported lamp parts are properly marked with country of origin in accordance with section 134.32(d), Customs Regulations (19 CFR 134.32(d)), we find that Legacy is the ultimate purchaser of the imported lamp parts and that the parts are excepted from marking pursuant to section 134.35, Customs Regulations (19 CFR 134.35).

HOLDING:

Pursuant to 19 CFR 134.35 and in accordance with the conditions described in this ruling, imported lamp parts are excepted from country of origin marking so long as their outermost containers are properly marked at the time of importation. Customs officials must be satisfied at the time of importation that the parts are entirely unassembled and are destined for use by Legacy exclusively in the production of lamps as described above.

Sincerely,

John Durant, Director
Commercial Rulings Division

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