HQ 0734882 - Country of Origin Marking for Lamp Shades; Combining; Substantial Transformation; 19 CFR 134.14. - United States International Trade Commision Rulings

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HQ 734882

August 9, 1993

MAR-2-05 CO:R:C:V 734882 RC

CATEGORY: MARKING

Mr. L. Klestadt
Trans-World Shipping Corp.
53 Park Place
New York, NY 10007

RE: Country of Origin Marking for Lamp Shades; Combining; Substantial Transformation; 19 CFR 134.14.

Dear Mr. Klestadt:

This is in response to your letter of October 30, 1992, requesting a binding ruling on the country of origin marking requirements for lamp shades made in China and Thailand. In November of 1992, we telephoned you requesting samples and more information regarding the processes involved in the manufacture of both the foreign and domestic components. On March 24, 1993, we received a sample lamp and cover letter, but no more details regarding the processing in each country. On July 30, 1993, you stated on the telephone that the art glass is produced in the U.S.

FACTS:

Your company imports lamp shades that are manufactured in China and Thailand, using art glass of U.S. origin. After importation into the U.S., the shades are screwed onto electrically-wired zinc bases of U.S. origin. A hang tag on the submitted sample lamp indicates, "All Dale products are made of American made art glass....". You state that none of the shades will be sold separately and that a large portion of the finished table lamps will be exported to Europe. For purposes of this ruling, we assume that the country of origin of the lamp shades is either China or Thailand.

ISSUE:

Whether the lamp shades undergo a substantial transformation by the U.S. processing within the meaning of 19 U.S.C. 1304 and 19 CFR Part 134.

LAW AND ANALYSIS:

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article 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 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 exceptions of 19 U.S.C. 1304.

Under section 134.35, Customs Regulations (19 CFR 134.35), the manufacturer or processor in the U.S. who converts or combines an imported article into an article having a new name, character or use will be considered the ultimate purchaser of the imported article within the scope of 19 U.S.C. 1304 and the article will be excepted from marking.

The question of when a substantial transformation occurs for marking purposes 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). Assembly operations which are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. See, C.S.D. 85-25 (September 25, 1984).

In HQ 731432 (June 6, 1988), where a U.S.-made pewter figurine was permanently affixed to a German-made beer stein, Customs found that the figurine was a finished product when it was attached to the stein, also, that the soldering was the only operation and that it was minor. Furthermore, while the attachment was permanent, the figurine was an important part of the stein. Lastly, the figurine was quite visible and it did not lose its character as a figurine. Thus, the figurine did not lose its separate identity when it was combined with the stein, and thus it was not substantially transformed. The figurine remained a product of the U.S.; and the stein remained a product of Germany.

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.

Applying the analyses of HQ 731432 and HQ 734503 to the instant case, we find that the art glass lamp shade is a component, important as, or more than, the base, and imparts the unique character of the lamp. The shades are quite visible and do not lose their character. They are finished removable products when attached to the bases. They do not lose their separate identities when combined with the bases. The assembly operation done in the U.S. is minor. In sum, the shades are not substantially transformed in the U.S. Therefore, the U.S. lamp manufacturer is not considered to be the ultimate purchaser of the shades and the shades must be marked to indicate their country of manufacture.

The precise wording to be used may be a matter of choice, but we note that pursuant to section 134.14 Customs Regulations, 19 CFR 134.14, the lamps must be marked in such a manner as to distinguish the imported components from any domestic components which are added after importation. Your choice to indicate on the hang tag that "All Dale products are made of American made art glass...." triggers the provisions of 19 CFR 134.46. Under 19 CFR 134.46, any reference to the U.S. or a U.S. local would require that you indicate the country of origin conspicuously, in close proximity to the U.S. reference preceded by the words "Made in", "Product of", or other words of similar meaning. Close proximity is generally defined as the same side or panel. As such, the hang tag must be marked "Shade made in China" or "Shade made in Thailand", reflecting the actual country of manufacture, on the same side as the reference to the American made art glass.

Any articles labeled "Made in USA" must comply with the requirements of the Federal Trade Commission. We suggest that you direct any questions on this aspect to the Federal Trade Commission.

HOLDING:

The lamps must be marked to indicate that the shades are manufactured in China and Thailand in order to satisfy the country of origin marking requirements as set forth in 19 U.S.C. 1304 and 19 CFR Part 134.

Sincerely,

John Durant, Director

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