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NY B88235





July 25, 1997

MAR-2-RR:NC:2:224 B88235

CATEGORY: MARKING

William Barthold
Hippo, Inc.
4400 N. Federal Hwy
Suite 410
Boca Raton FL 33431

RE: The Country of Origin Marking of golf clubs and their components from China.

Dear Mr. Barthold:

This is in response to your letter dated July 15, 1997, requesting a ruling on the acceptable country of origin marking for imported fully assembled golf clubs. You also ask about the country of origin marking requirements for imported golf club heads that will be assembled in the United States with domestic shafts and grips to make a finished golf club. A marked sample was not submitted with your letter for review.

Your company makes and sells golf clubs. In one scenario, it imports a line of finished, fully assembled golf clubs from China. The club components - shafts, heads and grips - are manufactured in China and Taiwan.

In the second scenario, your company imports finished golf club heads from China or Taiwan. The golf club heads will be assembled with U.S. made shafts and grips in the U.S. to make finished golf clubs.

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.

As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.

The marking of imported finished golf clubs, as described in the first situation, must be conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. If the head and shaft are made in two different countries, each component must be separately marked to indicate its own country of origin with markings such as "Shaft Made in China" and "Head Made in Taiwan." If the head and the shaft are both made in one country, marking of one of the components is sufficient

Regarding the second scenario, Part 134, Customs Regulations (19 CFR 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

As provided at 19 CFR 134.1(b), the country of origin of an article is the country in which it was manufactured, produced, or grown. Further work or material added in another country must effect a substantial transformation in order to render such other country the country of origin. A substantial transformation is said to occur when, after processing, an article emerges having a new name, character, or use. A manufacturer in the U.S. who converts or combines the imported article into a different article will be considered the ultimate purchaser of the imported article within the meaning of 19 U.S.C. 1304, and the article is excepted from country of origin marking. The outermost container of the imported article must be marked in accordance with the requirements of 19 U.S.C. 1304 and Part 134, Customs Regulations. See 19 CFR 134.35.

Here, the issue is whether the assembly of golf clubs from imported club heads effects a substantial transformation of the imported heads, such that your company is the ultimate purchaser of the heads and the imported heads may be excepted from country of origin marking. Customs previously has addressed this question and answered in the affirmative. In ORR 824-70 (August 24, 1970), we ruled that a manufacturer who purchased imported golf club heads, whether finished or unfinished, and assembled them with shafts and grips of U.S. origin into finished golf clubs, was the ultimate purchaser of the imported heads. Provided Customs officials are satisfied that the imported heads will be used by the original equipment manufacturer, they may be excepted from individual country of origin marking. To the same effect were HQ 728213 (July 3, 1985) and HQ 734136 (June 17, 1991). In each case either the head or the shaft was of U.S. origin. A different conclusion was reached in HQ 734256 (July 1, 1992) where both of the major components of the club, i.e., the head and the shaft, were of foreign origin. The imported heads and shafts were required to be marked with their country of origin.

Consistent with these rulings, we find that in this case, the addition of a major U.S. component - the shaft - in the U.S. to produce the completed golf club effects a substantial transformation of the imported head. Therefore, your company is the ultimate purchaser of the golf club heads, and pursuant to 19 CFR 134.35 only the outermost containers of the imported heads must be marked to indicate their country of origin. The finished golf club is not require to be marked to indicate the origin of the head. Marking the outermost containers in which the heads are imported and in which they reach your company would suffice to indicate the country of origin of the heads to the ultimate purchaser as provided at 19 CFR 134.32(d)
holding:

When importing a fully assembled, finished golf club made with foreign components, the head, shaft and grip components must be marked with their country of origin, as detailed above.

Imported golf club heads which are assembled with grips and shafts of U.S. origin by original equipment manufacturers of golf clubs are excepted from individual country of origin marking and only the outermost containers of such heads must be marked pursuant to 19 CFR 134.35, provided that (1) the heads do not bear the words "United States," or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or locality in the U.S.; and (2) Customs officials at the port of entry are satisfied that the articles will reach the original equipment manufacturer in their original, unopened containers.

Statements to this effect may be require by the district director at the port of entry.

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

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Tom McKenna at 212-466-5475.

Sincerely,

Gwenn Klein Kirschner
Chief, Special Products Br.

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