NY 803679 - Country of origin marking of a lighted seam/ripper threader. - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1997 NY Rulings > NY 803679 - NY 803934 > NY 803679

Previous Ruling Next Ruling
NY 803679

November 16, 1994

MAR-2-85:S:N:N3:227 803679

CATEGORY: MARKING

Ms. Nikki Dodier
NAMCO
777 East MacArthur Circle, Suite 1
Tucson, Arizona 85714

RE: Country of origin marking of a lighted seam/ripper threader.

Dear Ms. Dodier:

This is in response to your letter dated September 15, 1994, requesting a ruling, on behalf of your client, Coats & Clark, on the country of origin marking requirements for an imported article which is processed in a NAFTA country prior to being imported into the U.S. A marked sample was not submitted with your letter for review.

The merchandise in question is called "a lighted seam/ripper threader" consisting of the following component pieces, listed below with values and countries of origin:

Qty. Description Origin Cost

1 Penlight Hong Kong $.50
2 Nose Cones U.S. .15
1 Thread/Wire U.S. .0245
1 Seam Ripper Taiwan .071
1 Hang Card U.S. .096
1 Blister Pack U.S. .034

The component pieces will be shipped to an assembly facility in Mexico where the seam/rippers and the threading wires will be glued into the nose cones. The components will be then packed into carded blister packs ready for sale at retail as a set. Each package will contain two nose cones and one penlight; one nose cone with a seam ripper and the other cone with a wire threader. The nose cones are interchangeable and made to fit snugly over the penlight.

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 2
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.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the interim amendments to the Customs Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3, 1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim amendments took effect on January 1, 1994 to coincide with the effective date of the NAFTA. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in T.D. 94-4 (adding a new Part 102, Customs Regulations). The marking requirements of these goods are set forth in T.D. 94-1 (interim amendments to various provisions of Part 134, Customs Regulations).

Section 134.1(b) of the interim regulations, 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 this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).

Section 134.1(j) of the interim regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the interim regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the interim regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.

You state that the lighted seam/ripper threader is processed in a NAFTA country "Mexico" prior to being imported into the U.S. Since "Mexico" is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported merchandise is a "good of a NAFTA country", and thus subject to the NAFTA marking requirements.

Part 102 of the interim regulations sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the interim regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Applying the NAFTA rules of origin set forth in Part 102 of the interim regulations to the facts of this case, we find that the imported merchandise (lighted seam/ripper threader) is not a good of a NAFTA country for marking purposes since the non-originating materials used to make up the subject article have not satisfied the changes in the tariff classification set out in Section 102.20.

In this case, because the imported merchandise is not a good of a NAFTA country, the NAFTA Marking Rules do not apply, rather the general substantial transformation test cited in 19 CFR 134.1(b) must be applied in order to determine the country of origin of the imported subject article for marking purposes. A substantial transformation occurs when an article loses its identity and becomes a new article having a new name, character or use.

Based on the facts of this case, we find that the processing performed in the NAFTA country "Mexico" does not substantially transform the article into a new article having a new name, character or use. Accordingly, the article or its container must be marked to indicate "Assembled in Mexico of components from Hong Kong, Taiwan and the United States" as the country of origin in accordance with the general marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).

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.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave., NW, Franklin Court, Washington, DC 20229.

Sincerely,

Jean F. Maguire
Area Director

Previous Ruling Next Ruling