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NY 800722




September 1, 1994

MAR-2-84:S:N:N3:102 800722

CATEGORY: MARKING

Ms. Mary E. Bozzello
State Metals, Inc.
131 Jericho Turnpike
Jericho, N.Y. 11753

RE: Country of origin marking of imported valve parts

Dear Ms. Bozzello:

This is in response to your letter dated June 27, 1994 requesting a ruling on whether imported valve parts are required to be individually marked with the country of origin if it is later to be processed in the U.S. by a U.S. manufacturer. A marked sample was submitted with your letter for review.

The items in question comprise all of the necessary parts needed to assemble a complete brass gate valve. These parts, which are produced in Indonesia, consist of the following: hand wheel, handle retaining nut, identification ring tag, valve body, gate, and bonnet assembly. The only operations that take place in the U.S. are assembly, testing and packaging. In your letter you asked whether the completed valve could be marked "Made in the U.S.A."

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. 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. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. 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 and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.

In this case, the imported valve parts are not substantially transformed as a result of the U.S. assembly and therefore the U.S. manufacturer is not the ultimate purchaser of the imported parts. The assembled valve can not be marked "Made in the U.S.A." nor sold as such.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. 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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