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HQ 735259


August 11, 1993

MAR-2-05 CO:R:C:V 735259 RC

CATEGORY: MARKING

Mr. Dale G. Vander Yacht
Border Brokerage Company
P.O. Box B
Blaine, Washington 98230

RE: Country of Origin Marking of Table Hardware Kits; T.D. 91-7; 19 CFR 134.46.

Dear Mr. Vander Yacht:

This is in response to your letter of June 21, 1993, requesting a ruling on the country of origin marking requirements for table hardware kits to be imported into the U.S. You submitted a sample kit as packaged for retail sale.

FACTS:

Each table hardware kit is individually packaged for retail sale in sealed plastic bags. The bags contain kit-components from Canada, Taiwan, and the U.S.: nuts, bolts, leg brackets, etc. The package is marked with a Canadian address with the words "PACKAGED IN CANADA" printed just below, in approximately 9 points. (A point is a unit of type measurement equal to 0.01384 inch or nearly 1/72 inch, and all type sizes are multiples of this unit.)

ISSUE:

What is the proper country of origin marking for the table hardware kits according to 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 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.

Section 134.1(d) defines the "ultimate purchaser" generally as the last person in the United States who will receive the article in the form in which it was imported. The marking must be conspicuous to the ultimate purchaser. Here, the ultimate purchaser is the person who buys the table hardware kit at retail. The "country of origin" for marking purposes is defined by section 134.1(b), Customs Regulations (19 CFR 134.1(b)), to mean the country of manufacture, production, or growth of any article of foreign origin entering the U.S.

When articles manufactured in different countries are combined or assembled, Customs must determine the country of origin, for marking purposes. The country of origin is the country where the article last underwent a "substantial transformation", that is, processing which results in a change in the article's name, character, or use. Section 134.35, Customs Regulations (19 CFR 134.35).

Here, the combining of the table hardware items into kits does not constitutes a substantial transformation because the resulting product is not a new article in which the constituents lose their separate identities. Each item in the kit remains clearly identifiable. Therefore, under section 304 of the Tariff Act, the kits must be marked to indicate to the ultimate purchaser in the U.S. the foreign origin of the items contained therein.

The required marking is addressed in T.D. 91-7 (dated January 16, 1991), which provides that materials of foreign origin which comprise sets, mixtures, or composite goods must be marked to indicate the country of origin unless substantially transformed. However, to the extent such foreign materials are relatively insignificant, or would have no influence on the purchasing decision, Customs applies a "common sense" approach to determine whether the individual items in the set must be marked. Each request is treated on a case by case basis according to the facts presented.

In HQ 734737 (December 17, 1992), Customs found that drawer slides imported and sold as parts of furniture kits were subject to marking. The drawer slides accounted for at least six percent and as much as twelve percent of the cost of the finished furniture. In HQ 555365 (September 7, 1990), Customs found that imported screws when sold with U.S.-made junction boxes were not subject to marking. The screws constituted an insignificant part of the set, 2.3 percent of the total value.

In this case, none of the items in the kit can be considered insignificant. Pursuant to the general marking requirements and T.D. 91-7, the table hardware kits must be marked to indicate the foreign country of origin of each of the various components. The country of origin marking rules do not apply to articles of U.S. origin. However, if you choose to indicate the U.S. origin of the components, then the marking will need to comply with the requirements of the Federal Trade Commission. We suggest that you direct any questions on this aspect of the issue to the Federal Trade Commission.

Finally, section 134.46, Customs Regulations (19 CFR 134.46), provides in relevant part that when letters or words indicating the name of a country or locality other than the country of origin appears on an article, the name of the country of origin must appear "in at least comparable size" and "in close proximity" to such letters or words. The purpose of 19 CFR 134.46 is to prevent the possibility of misleading or deceiving the ultimate purchaser as to the origin of the imported article. Customs has ruled that in order to satisfy the "close proximity" requirement of 19 CFR 134.46, the country of origin marking must appear on the same side or sides, surface or surfaces, in which the name of the locality other than the country of origin appears. See HQ 708994 (April 24, 1978).

HOLDING:

The table hardware kits must be marked to indicate the foreign country of origin of each component. It is not necessary to indicate country of origin of the U.S. components. The kits may be marked "Components Made in , , and ." The marking must appear in as comparable a size and in close proximity to the Canadian address. You may indicate that the kits are packaged in Canada; however it is not necessary.

Sincerely,

John Durant, Director

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