NY D88291 - COUNTRY OF ORIGIN MARKING OF IMPORTED LAMINATED POST BLANKS AND HANDRAILS; ARTICLE 509 - United States International Trade Commision Rulings

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March 10, 1999

MAR-2 RR:NC:2:230 D88291

CATEGORY: MARKING

Mr. Douglas G. McKenny
Norman G. Jensen, Inc.
47 Caswell Avenue
P.O. Box 1439
Derby Line, VT 05830

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED LAMINATED POST BLANKS AND HANDRAILS; ARTICLE 509

Dear Mr. McKenny:

This is in response to your letter dated February 8, 1999, on behalf of your client, Menuiserox inc., requesting a ruling on the country of origin marking requirements for an imported newel post blank. The post blank is produced in a NAFTA country and is later to be further processed in the U.S. into a finished article. A sample of a post blank was submitted with your letter for review.

Your letter also requested a ruling on whether the proposed marking with ink or with a pressure sensitive label is an acceptable country of origin marking for imported handrails. A sample of a handrail stamped in ink was submitted.

The classification of the laminated newel post blank and the laminated handrail was addressed separately in ruling number D88087.

The imported newel post blank is an assembled square and unshaped block of wood composed of three pieces of red oak lumber glued together along their faces. The post blank is produced in Canada. When imported into the United States the post blanks are packaged on shrink-wrapped and banded pallets. They are sold by the pallet to woodturners who turn, sand, and cut the blanks into shaped newel posts for staircases.

The imported handrail is a fully shaped section of a handrail composed of face glued lumber. It is produced in Canada and sold in the United States either to stair builders or to wholesalers and distributors who in turn sell the product at retail level or to stair builders. Other than trimming to length, the handrails do not require any further manufacturing. The sample handrail submitted is stamped in permanent black ink, MADE IN CANADA.

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.

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 appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

Section 134.1(b) of the 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 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 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 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.

In order to determine the country of origin marking requirements we must first apply the NAFTA Marking Rules in order to determine whether the imported laminated post blank "is a good of a NAFTA country", prior to being further processed in the U.S. Part 102 of the 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 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 regulations to the facts of this case, we find that, for marking purposes, the imported laminated post blank is a good of a NAFTA country prior to being further processed in the U.S.

The only issue which remains is whether the U.S. processor is the ultimate purchaser within the meaning of section 134.35(b). Section 134.35(b) of the regulations, provides that
a good of a NAFTA country which is to be processed in the United States in a manner that would result in the good becoming a good of the United States under the NAFTA marking rules is excepted from marking. Unless the good is processed by the importer or on its behalf, the outermost container of the good shall be marked in accord with this part.

Based on the facts of this case, we find that the imported laminated post blank as a result of the further processing performed in the U.S. becomes an article of U.S. origin under Part 102 of the regulations.

Accordingly, the imported post blanks, which are goods of a NAFTA country that become U.S. articles as a result of being further processed in the U.S., in the manner described above, are excepted from marking and only the outermost containers are required to be marked with the country of origin "Canada."

The imported handrails are not further processed in the U.S. They will be used in staircases or other parts of a building. This use does not cause the handrail to become a good of the United States under the NAFTA marking rules within the meaning of section 134.35(b) of the regulations as noted above. The handrails are not excepted from marking requirements.

The handrails must be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article will permit. As provided in section 134.41(b)of the regulations, 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) of the regulations 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 of the regulations 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. If pressure sensitive labels are used, they must be affixed in a conspicuous place and so securely that unless deliberately removed they will remain on the article while it is in storage or on display and until it is delivered to the ultimate purchaser, as stated by section 134.44(b) of the regulations.

We find the proposed marking with ink on the submitted sample to be conspicuous, legible and indelible. You stated that the imported product which will be imported in lengths of 6 to 16 feet would be marked in this manner at regular intervals. This proposed marking would satisfy the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the imported handrails.

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

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 Paul Garretto at 212-637-7009.

Sincerely,

Robert B. Swierupski

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