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NY G81537





September 13, 2000

MAR-2 RR:NC:2:226 G81537

CATEGORY: MARKING

Mr. Richard A. Rocco
Livingston International, Inc.
27215 Northline Road
Taylor, MI 48180

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED BARITE, ARTICLE 509

Dear Mr. Rocco:

This is in response to your letter dated July 27, 2000, on behalf of Highwood Resources, requesting a ruling 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. Samples were submitted to our office for review.

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.

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.

You state that the imported barite is processed in a NAFTA country, Canada, prior to being imported into the U.S. Since Canada 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 barite is a "good of a NAFTA country", and thus subject to the NAFTA marking requirements.

Part 102 of the regulations sets forth the "NAFTA Marking Rules" for 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.

You state that barite originating in China is ground and pulverized in Canada. The original barite from China is classified in subheading 2511.10, Harmonized Tariff Schedule of the United States (HTS). When this material is ground and pulverized in Canada, it is still classified in subheading 2511.10, HTS. Thus, the merchandise does not undergo an allowable tariff shift under Section 102.11 (a)(3) of the regulations (i.e., it does not undergo an applicable change in classification set out in Section 102.20 of the regulations).

You claim that the country of origin of the imported barite for marking purposes is Canada since Canada is the last country in which the good underwent production in accordance with Section 102.11 (d) (3) of the Customs Regulations. However, Section 102.11 (d) should not be considered when the country of origin can be determined in accordance with Section 102.11 (b) of the regulations. Under Section 102.11 (b), the country of origin of the good is the country of origin of the single material that imparts the essential character to the good.

In this instance Chinese barite is merely ground and pulverized (simple physical processing) in Canada. After processing in Canada, the barite remains barite. The physical processing does not alter the fact that the barite itself is the single material that imparts the essential character to the merchandise in accordance with Section 102.11(b) of the Customs Regulations. The barite originates in China. The essential character of the good is represented by the barite mined in China. Therefore, based on Section 102.11(b), the country of origin of this merchandise for marking purposes is China, not Canada.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported barite is a good of China for marking purposes.

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 Jacob Bunin at 212-637-7074.

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, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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