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NY K82888




March 11, 2004

MAR-2 RR:NC:N1:113 K82888

CATEGORY: MARKING

Mr. Donald S. Simpson
Barthco Trade Consultants
7575 Holstein Avenue
Philadelphia, PA 19153

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED CASTINGS

Dear Mr. Simpson:

This is in response to your letter dated February 9, 2004, on behalf of Southland Metals, Inc., requesting a ruling on whether imported castings are required to be individually marked with the country of origin if it is later to be processed in the U.S. by a U.S. manufacturer. A marked sample was not submitted with your letter for review.

Southland imports castings of CE bracket frames (part #36014), conduit covers (part # 125X0001), stator frames (part # 22SF1105), end plates (22EP1101) and CE brackets frames (part # 50015). Southland sells these components to their customer Baldor Electric Company. For each imported part, Baldor is the sole recipient, has full knowledge that the country of origin of these parts is China, and assembles these items into electric motors.

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.

Imported castings sold to a U.S. company for use in the manufacturer of motors are substantially transformed and the manufacturer is considered to be the ultimate purchaser of the castings. Pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.35, the individual castings do not have to be marked with the country of origin, as long as they are imported in containers that are properly marked with the country of origin and Customs officials at the port of entry are satisfied that the casings will only be sold to a manufacturer in their original boxes marked with the country of origin "China".

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 James Smyth at 646-733-3018.

Sincerely,

Robert B. Swierupski
Director,

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