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NY 896253




April 7, 1994

CLA-2-87:S:N:N1:101 896253

CATEGORY: CLASSIFICATION

TARIFF NO.: 8716.90.5060

Ms. Carie Samuel
Fritz Companies, Inc.
1721 W. Elfindale, Suite 205
Springfield, MO 65807

RE: The tariff classification of trailer components from China

Dear Ms. Samuel:

In your letter dated March 22, 1994, on behalf of Reyco Industries, Inc., Springfield, MO, you requested a tariff classification ruling. You have enclosed copies of technical drawings. The imported products are a track rod bracket and a slider lock pin. You state that while these two products are finished they will not be sold as individual parts, but will be included into the slider/hanger assembly (which is a trailer component). You further state that the slider/hanger assembly will be assembled into trailers.

The track rod bracket, part no. 19604-01, is a bracket which holds a type of nut/bolt on the end of a trailer. The bracket is made of ductile iron and weighs approximately one pound.

The slider lock pin, part no. 19753-01, is used to hold puller links onto a trailer. The pin is made of cast steel and weighs approximately 2.4 pounds.

The track rod bracket and slider lock pin are identifiable as being suitable for use solely or principally with trailers, and they are not excluded by the provisions of the Notes to Section XVII, HTS. The two products are parts of trailers.

The applicable subheading for the track rod bracket (part no. 19604-01) and the slider lock pin (part no. 19753-01) will be 8716.90.5060, Harmonized Tariff Schedule of the United States (HTS), which provides for parts of trailers and semi-trailers, other. The rate of duty will be 3.1 percent ad valorem. You also inquired about country of origin marking. You state that the ultimate purchaser of this merchandise will be Reyco Industries, Inc., who assembles the parts into their trailers. Once received in the United States, the track rod bracket and the slider lock pin will be included in a much larger assembly (called a slider/hanger assembly). The slider/hanger assembly will be sold to Reyco Industries, Inc. customers.

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304) provides that, unless excepted, that 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 manner as to indicate to an 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.

An article is exempted from marking under 19 U.S.C. 1304 (a)(3)G) and section 134.32 (g), Customs Regulations (19 CFR 134.32 (g)). An exception may be made, under section 134. 32 (g), for articles to be processed in the U.S. by the importer or for his account otherwise than for the purpose of concealing the origin of such articles and in such manner than any mark contemplated by this part would necessarily be obliterated, destroyed, or permanently concealed.

Section 134.41(b), Customs Regulations (19 CFR 134.41(b), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article will be used in manufacture, the manufacturer may be the "ultimate purchaser if /s/he subjects the imported article to a process which results in a substantial transformation of the article, even though the process may not result in a new or different article. But, if the manufacturing process is a minor one which leaves the identity of the imported article intact, the consumer or user of the article, who obtains the article after the processing, will be regarded as the "ultimate purchaser." 19 CFR 134.1(d)(1) and (2). In determining whether the combining of parts or materials constitutes a substantial transformation, the issue is the extent of operations performed and whether the parts lose their identity and become an integral part of the new article.

An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(H) and section 134.32 (h), Customs Regulations (19 CFR 134.32 (h)). An exception may be made, under section 134.32 (h), for articles for which the ultimate purchaser must necessarily know the country of origin by reason of the circumstances of their importation or by reason of the character of the articles even though they are not marked to indicate their origin. To qualify for this exemption, the importer must be the ultimate purchaser of the imported article and there is a direct contact with the foreign supplier in which the supplier insures that the order will be filled only with articles manufactured in a named country.

Based on the submitted information, we find that the track rod bracket (part no. 19604-01) and the slider lock pin (part no. 19753-01) to be processed in the U.S. by the importer, otherwise than for the purpose of concealing the origin of such articles and in such manner than any mark contemplated by this part would necessarily be obliterated, destroyed or permanently concealed, then that company may eligible for an exception of marking. Further, we find that the articles will be substantially transformed by being assembled into the slider/hanger assembly, and then into the trailer. If Reyco Industries, Inc. meets the definition of ultimate purchaser, is in direct contact with the foreign supplier, and is aware of the country of origin, then that company may be eligible for an exception of marking. In this regard section 134.34, Customs Regulations (19 CFR 134.34), provides that an exception may be authorized at the discretion of the district director.

In this instance, assuming the district director is satisfied that Reyco Industries, Inc. is the ultimate purchaser, and that the other conditions set forth in 19 CFR 134.34 are met, the district director may authorize an exception under 19 CFR 134.32(h), in which case marking of the imported trailer parts will not be required.

As you requested, the technical drawings will be returned to your office.

This classification ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director

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