HQ 0735409 - Country of origin marking requirements for unrecorded micro floppy discs; computer components; 19 CFR 134.45; HQ 735281. - United States International Trade Commision Rulings

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HQ 735409

May 27, 1994

MAR-2-05 CO:R:C:V 735409 RC

CATEGORY: MARKING

Mr. Larry D. Richardson
Fritz Companies, Inc.
P.O. Box 92641
Los Angeles, California 90301-2063

RE: Country of origin marking requirements for unrecorded micro floppy discs; computer components; 19 CFR 134.45; HQ 735281.

Dear Mr. Richardson:

This is in response to your letter dated October 12, 1993, requesting the country of origin marking requirements for micro floppy discs imported from China. We regret the delay in responding.

FACTS:

Your client, SV International, Inc., plans to import blank micro floppy computer discs for customers who will install a program onto the discs in the United States. You want to indicate the country of origin marking on the cartons in lieu of the discs themselves. Fifty floppy discs are stored in one inner carton box. Ten inner cartons are stored in one outer carton. Instead of marking each disc you want to mark both the inner and outer cartons "Made in China."

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. 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.

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 transformation in order to render such other country the "country of origin" within the meaning of the marking laws and regulations. An imported article used in manufacture which results in an article having a name, character or use different from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. See U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940). The imported article is excepted from marking to the extent that the outermost container is properly marked. See 19 CFR 134.35.

The facts in HQ 735281 (February 24, 1994) (copy enclosed) are directly on point with the instant facts. Also, in HQ 732087 (February 7, 1990), Customs ruled that writing a program onto a computer diskette substantially transformed the blank diskette.

Accordingly, we find that the party performing the programming is considered the ultimate purchaser of the blank disc. Therefore, the individual discs are excepted from country of origin marking provided the discs are imported in properly marked sealed containers. Customs officials at the port of entry must be satisfied that the discs will remain in these sealed containers until they reach the ultimate purchaser.

HOLDING:

Writing programs onto blank micro floppy discs substantially transforms the discs. Pursuant to 19 CFR 134.35, the individual discs are excepted from marking to the extent that their outermost containers are properly marked to indicate the country of origin of the discs until they reach the ultimate purchaser. Here, the ultimate purchaser is the person who records the blank micro floppy discs.

Sincerely,

John Durant, Director

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