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NY K81768

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February 6, 2004
MAR-2 RR:NC:3:353 K81768

CATEGORY: MARKING

Mr. Christopher H. Bommarito
Paramount Apparel International
P.O. Box 98
#1 Paramount Drive
Bourbon, MO 65441

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED CAP COMPONENTS

Dear Mr. Bommarito:

This is in response to your letter dated January 9, 2004 requesting a ruling on whether a cap assembled in the United States, from imported cap components, may be marked “Assembled in USA.” A sample of the cap components and the marked finished cap were submitted with your letter for review.

Fabric from China is sent to Hong Kong where it is cut and sewn into cap components. There are four cap components: a six-panel crown, sweatband, visor (peak) and adjustable strap. The components will then be shipped to the United States, where they will be sewn together to form a finished cap.

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 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. 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 he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which 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. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.

As per GN Note 2(a) to Harmonized Tariff Schedule of the United States (HTS), any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. Customs has consistently classified textile crowns as unfinished headgear, classified under 6505.90.

In this case, because the crown is classified as headgear at the time of importation, the cap components are not substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is not the ultimate purchaser of the imported cap components.

All the cap components are required to be individually marked with the country of origin, which is Hong Kong.

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 Reidlinger at 646-733-3053.

Sincerely,

Robert B. Swierupski
Director,

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