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NY J80027

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January 21, 2003

MAR-2-27:RR:NC:SP:237 J80027

CATEGORY: MARKING

Mr. David R. Grace
Covington & Burling
1201 Pennsylvania Ave., N.W.
Washington, D.C. 20044-7566

RE: Country of origin marking of Shell Helix Ultra 5W-30 Motor Oil from the United Kingdom

Dear Mr. Grace:

In your letter dated January 9, 2003, on behalf of the Shell International Petroleum Company Limited, you requested a country of origin marking ruling. Shell Helix Ultra 5W-30 Motor Oil is processed in the United Kingdom by blending synthetic hydrocarbon base oil (75%) from Malaysia and chemical additives from various European countries, including a performance additive (15%), a viscosity improver (0.6%), a pour point depressant (2.0%) and a synthetic ester (7.0%).

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.

Section 134.1(b) of the Customs Regulations defines “country of origin” as the country of manufacture, production or growth of any foreign 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 the meaning of Part 134. A substantial transformation is said to have occurred when an article emerges from a manufacturing process with a name, character, or use which differs from the original material subjected to the process. Torrington Co. v. United States, 764 F.2d 1563, 1568 (Fed. Cir. 1985), citing Texas Instruments, Inc. v. United States, 631 F.2d 778, 782 (C.C.P.A. 1982).

In the United Kingdom base oil from Malaysia is processed by blending into a premium motor oil meeting the performance standards of American Petroleum Institute (API), European Automobile Manufacturers Association (ACEA) and of various original equipment manufacturers (OEMs). The performance additive primarily consists of detergents, dispersants and antiwear additives designed to keep engine parts clean, minimize wear of engine parts and minimize degradation of the base oil at high temperatures. The viscosity improver ensures that the engine oil remains fluid at low temperatures and retains sufficient lubricating capacity at high temperatures. The pour point depressant is a lubricating oil additive that increases the flow point of the base oil. The synthetic ester improves the solubility of the performance additive in the base oil.

Based upon the information provided, base oil from Malaysia, which is primarily sold and traded in bulk to manufacturers/blenders of finished lubricants, is blended in the United Kingdom with chemical additives from various European countries and undergoes a substantial transformation into a high performance motor oil, with a name, character and use which differs from the original material subjected to the process. Accordingly, pursuant to the country of origin marking requirements set forth in 19 U.S.C. §1304 and 19 C.F.R. Part 134, the bulk containers for truck fleets, garages, etc. and small packs for consumers must be marked to indicate the “United Kingdom” as the country of origin.

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

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Frank Cantone at 646-733-3038.

Sincerely,

Robert B. Swierupski
Director,

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