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NY F84311




March 23, 2000

MAR-2 RR:NC:N1:113 F84311

CATEGORY: MARKING

Mr. George R. Tuttle III
George R. Tuttle
3 Embarcadero Center, Suite 1160
San Francisco, CA 94111

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED ELECTRICAL CONDUIT FITTINGS; ARTICLE 509

Dear Mr. Tuttle:

This is in response to your letter dated March 9, 2000, on behalf of Joslyn Sunbank, requesting a ruling on the country of origin marking requirements for imported electrical conduit fittings which are assembled from Mexican, Chinese and U.S. components in a NAFTA country. A marked sample was not submitted with your letter for review. You propose to mark the item “MEXICO” by means of a hangtag or label.

The merchandise consists of the BACC KC28 assembly, used as a coupling or fitting to transition a wire bundle or cable into an electrical connector or plug. This item was the subject of PD F81478 of January 31, 2000, in which it was classified as 7326.90.8585, other articles of iron or steel. The assembly consists of two principal components, the coupling ring and the body. A complete assembly includes:
a body casting of stainless steel, of US or Chinese origin; one SS coupling ring machined from U.S. origin material in Mexico; two screws of U.S. origin; a saddle bar of U.S. or Chinese origin one plastic bag of U. S. origin.

The SS body casting was originally produced in the U.S. Production of this component is being transferred to China. According to your letter, Joslyn Sunbank will import a “rough” casting from China into Mexico, where it will be subject to finishing operations. You believe that this casting is classifiable in heading 7325, HTS as other cast articles of iron or steel. HQ 959315 of October 1, 1996, defined that heading as follows:

Heading 7325 covers all cast articles not elsewhere specified or included in the Nomenclature. Generally, cast articles result from molten blast furnace iron being bottom poured into a mold. After sufficient time for solidification and cooling, the castings are removed from the mold by a shakeout machine. The casting process is considered complete when surface imperfections are removed by blast cleaning, chipping, burning or combinations of these processes.

Assuming this to be the case, the SS “rough” casting would be classifiable in heading 7325, HTS, upon its importation into Mexico. They are then subject to finishing operations in Mexico, including the machining of inside and outside diameters and cleaning. Two lock nuts or “cinch nuts” of Chinese origin are press-fitted into holes on the flange of the body.

The coupling ring will be milled and finished in Mexico from SS bar stock of U.S. origin. The body is then assembled to the coupling ring. The assembly is placed inside a plastic bag with a saddle clamp of U.S. or Chinese origin and two retaining screws of U. S. origin and the bag is sealed.

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 134.45(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. 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.

In this case, you state that Chinese and U.S. component(s) are exported to Mexico where they are assembled prior to being re-imported into the U.S. The rules for determining when, for marking purposes, the country of origin of an imported good is one of the parties to "NAFTA" are set forth in Part 102, Customs Regulations.

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 102.20 provides the specific rule of origin for goods of heading 7326, HTS, namely, “a change to heading 7325 through 7326 from any other heading, including another heading within that group.” We assume from your letter that the cinch nuts and screws are nuts and screws made of steel, and thus classifiable in heading 7318, HTS. In that case, each item undergoes a correct tariff change, except for the saddle bar.

Regarding the Chinese saddle bar or clamp, Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.13(a) provides that, except as otherwise provided in paragraphs (b) and (c) of this section, foreign materials that do not undergo the applicable change in tariff classification set out in Section 102.20 or satisfy the other applicable requirements of that section when incorporated into a good shall be disregarded in determining the country of origin of the good if the value of those materials is no more than 7 percent of the value of the good or 10 percent of the value of a good of Chapter 22, Harmonized System. According to your letter, the saddle bar or clamp is 1.5 percent of the value of the NAFTA good. We assume this value is determined as required by the Regulations.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case as stated, we find that the imported electrical conduit fittings are a good of Mexico for marking purposes. Regarding the methods of marking, 19 CFR 134.44(a) states:

Except for articles described in § 134.43 of this part or the subject of a ruling by the Commissioner of Customs, any method of marking at any location insuring that country of origin will conspicuously appear on the article shall be acceptable. Such marking must be legible and sufficiently permanent so that it will remain on the article (or its container when the container and not the article is required to be marked) until it reaches the ultimate purchaser unless deliberately removed. (b) Articles marked with paper sticker labels. If paper sticker or 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. (c) Articles marked with tags. When tags are used, they must be attached in a conspicuous place and in a manner which assures that unless deliberately removed they will remain on the article until it reaches the ultimate purchaser.

Therefore, marking the article with a label or hangtag is sufficient if the port director is satisfied that the article will reach the ultimate purchaser so marked.

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 James Smyth at 212-637-7008.

Sincerely,

Robert B. Swierupski
Director

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