NY K80076 - COUNTRY OF ORIGIN MARKING OF IMPORTED BALL BEARINGS AND SHIELDS - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 2003 NY Rulings > NY K80013 - NY K80089 > NY K80076

Previous Ruling Next Ruling
NY K80076

November 13, 2003

MAR-2 RR:NC:1:102 K80076

CATEGORY: MARKING

Mr. Robert L. Eisen
Coudert Brothers LLP
1114 Avenue of the Americas
New York, New York 10036-7703

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED BALL BEARINGS AND SHIELDS

Dear Mr. Eisen:

This is in response to your letter dated October 17, 2003 requesting a ruling on behalf of your client NMB (USA) on the country of origin marking of ball bearings and replacement shields that are subject to repackaging in the U.S.

In your request you explain that NMB intends to separately import complete ball bearings and replacement shields for these bearings. The shields affixed to the complete ball bearings at the time of importation will be marked to indicate the country of origin of the ball bearing. The outer containers in which the separately imported replacement shields are imported, not the shields themselves, will be marked to indicate their country of origin, which will be a country other than the country of origin of the complete bearings.

You indicate that NMB’s customers for both the complete bearings and the replacement shields are distributors. In order to meet the requirements of their own customers, the distributors may alter the lubrication of the complete bearings by removing the original shield, which inevitably destroys the shield, installing a replacement shield, and repackaging the altered bearing for sale to customer. You ask whether the replacement shields are substantially transformed when NMB’s customers affix them to the ball bearings. You also ask whether the ball bearings fitted with the replacement shields may be unmarked because they qualify for the marking exception afforded to domestically repacked articles. Alternatively, you inquire whether the containers in which the replacement shields are imported may be marked with the country of origin of the shields, while the shields themselves are marked with the country of origin of the ball bearing to which they will be affixed.

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 USC 1304.

Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if the manufacturer subjects the imported article to a process which results in a substantial transformation of the article. An article used in manufacture that results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials.

Based on the information you have provided the complete ball bearings and replacement shields are sold by NMB in their condition as imported. Accordingly, NMB is not an ultimate purchaser. Further, the distributors to whom NMB sells the complete bearings, whether or not they alter the bearings, are not the ultimate purchasers because the bearings are sold to other users and would not be substantially transformed by the alterations performed. However, we find that the replacement shields are substantially transformed by NMB’s distributors when affixed to the domestically altered bearings and that the distributors are the ultimate purchasers of the replacement shields, provided the shields are not sold separately in their condition as imported.

Because the NMB is not the ultimate purchaser of the complete ball bearings or replacement shields and these articles are subject to processing and repackaging after release from Customs custody by parties other than NMB the provisions of 19 CFR 134.26 are applicable.

Section 134.26(a) provides that if an article subject to country of origin marking is intended to be repacked after its release from Customs custody, or the port director having custody of the article has reason to believe that the article will be repacked after its release, the importer shall certify to the port director that: 1) if the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new container shall be marked to indicate the country of origin of the article; or 2) that if he does not repack the article he will give notice to subsequent purchasers or repackers of their obligations under section 19 U.S.C. 1304 and Part 134, Customs Regulations.

In this case, assuming that the port director is satisfied that the altered ball bearings with replacement shields will be repacked in the manner described above, and that the other conditions set forth in 19 CFR 134.26 are met, the port director may authorize an exception, in which case marking of the altered ball bearings themselves will not be required.

With regard to marking the containers of the replacement shields with their country of origin, while the shields themselves are marked with the country of origin of the bearing to which they we will ultimately be attached, there may be exceptions under the marking regulations. However, you will be required to clearly established that by the nature of transaction the ultimate purchasers, i.e., the distributors not NMB, are aware of the country of origin and would not be misled by other markings on the shields. Generally, this requirement will not be met when the ultimate purchaser is not the importer of record. The information made available in your request is not sufficient to allow us to rule on this alternative marking.

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 646-733-3009.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling