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NY B87524




December 16, 1997

MAR-2 RR:NC:1:102 B87524

CATEGORY: MARKING

Mr. Allan H. Kamnitz
Sharretts, Paley, Carter & Blauvelt, P.C. Sixty-seven Broad Street
New York, NY 10004

RE: Country of origin marking requirements for faucet components from various countries.

Dear Mr. Kamnitz:

This is in response to your letter dated July 14,1997 requesting a ruling on country of origin marking requirements for faucet components imported by your client Sepco Industries. Additional information and samples were provided in subsequent submissions.

Sepco Industries combines foreign and domestic components to produce decorative fittings for use in plumbing applications. The fittings are produced in a wide range of models, styles, finishes and configurations and sold to plumbing wholesalers. You indicate that the submitted samples are representative of the components used and reflect the operations typically performed by Sepco to produce a finished product.

A typical faucet consists of a "hot" water valve assembly, a "cold" water valve assembly, handle assemblies for each of the valves, a spout assembly, a pop-up drain assembly and two flexible hoses to connect the valve assemblies to the spout assembly. Foreign components may be produced in and imported separately from various countries including New Zealand, Germany, Austria, Italy, Spain, Taiwan, Argentina, Indonesia and China. Individual components and assemblies for the fittings are not separately sold by Sepco.

The exposed surfaces of the faucet components, known as "trim", are available in several decorative finishes. To produce a specified finish trim components are subjected to several operations prior to assembly of the faucet. The operations are performed domestically by your client and include buffing, polishing, coloring, plating, degreasing, electrostatic coating and curing. After the trim components have been processed, the faucet components are assembled, pressure tested and packed to form a complete set of matched lavatory fittings.

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.

Therefore, the country of origin marking requirements for the separately imported faucet components depend on whether your client Sepco is the ultimate purchaser of those components.

Section 134.35, Customs Regulations (19 CFR 134.35), implementing the principle of U.S.v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98), provides that an article used in the U.S. in manufacture which results in an article having a name, character, or use differing from that of the imported article will be considered substantially transformed, and therefore the manufacturer or processor in the U.S. who converts or combines the imported article into the different article will be considered the ultimate purchaser of the imported article within the contemplation of 19 U.S.C. 1304(a).

In this case, we find that the imported components do lose their separate identity when processed and combined to produce the finished decorative faucet. Although the assembly operations may not be especially complex, the product which emerges is a distinct article with a character different from its individual components. The imported components are intended and designed to be joined together, as well as with other domestic components, and subsequent purchasers would not view the decorative faucet as a collection of individual components, but as a single functional unit.

Accordingly, under 19 CFR 144.35, Sepco is the ultimate purchaser and the imported components shall be excepted from marking. However, in accordance with 19 U.S.C. 1304(b) and 19 CFR 134.22, the outermost container of the imported article shall be marked to indicate the country of origin of the article.

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 Kenneth T. Brock at 212-466-5493.

Sincerely,

Robert Swierupski
Chief, Metals and Machinery Branch

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