NY R00242 - THE COUNTRY OF ORIGIN MARKING OF A DVD DRIVE - United States International Trade Commision Rulings

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NY R00242

April 15, 2004

MAR-2 RR:NC:1:110 R00242

CATEGORY: MARKING

Mr. M. Erickson
Iomega Corporation
1821 West Iomega Way
Roy, UT 84067

RE: THE COUNTRY OF ORIGIN MARKING OF A DVD DRIVE

Dear Mr. Erickson:

This is in response to a letter dated April 7, 2004, from Ms. Judy K. Staskowski on behalf of Iomega Corporation, requesting a ruling on the country of origin marking for the importation of a DVD CDRW Drive from Korea. A marked sample was not submitted with your letter for review. Mr. Erickson of Iomega Corporation also provided clarification as to the retail packaging and the marking of the imported drive.

The merchandise under consideration is the Iomega Super DVD+/-RW/RAM 8X4X Drive Ext. USB 2.0 AM. This drive is designed to be an external DVD CDRW drive for use with automatic data processing (ADP) machines when assembly is completed. In your request, you state that the DVD drive is manufactured in Korea and sent to the United States for completion and final assembly into an external drive, and packaging with other related items. The completion of the drive in the U.S. includes the assembly of the protective plastic housing/casing and connections for the central processing unit (CPU) and power source. These housing and connection components are manufactured in China. When completed, this drive is packaged ready for retail sale with a power adapter, USB cable, power cord and software in the form of CD-ROMs, all of China origin. In addition, one blank DVD from Taiwan is also included within the retail packaging. The drive, the power adapter, USB cable, power cord, software CD-ROMs and blank DVD are marked with their respective countries of origin when imported into the United States.

The mere inclusion of an item in a collection or packaging for retail sale will not substantially transform it into an article with a new name, character or use and, therefore, each item must be separately marked with its own country of origin. Where the marking of the container will reasonably indicate the country of origin to the ultimate purchaser, the container may be marked instead of the individual articles. See 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d).

With regard to the DVD drive manufactured in Korea, there does not appear to be any further work or material added to this drive in the U.S. which would effect a substantial transformation as required in order to render the U.S. as the country of origin. The domestic assembly is considered a minor operation which leaves the identity of the drive intact. No change in use or name occurs.

Section 134.1(d)(2), Customs Regulations (19 CFR 134.1(d)(2)) says, “[i]f the manufacturing process is merely a minor one which leaves the identity of the imported article intact, the consumer or user of the article, who obtains the article after processing, will be regarded as the “ultimate purchaser.” Therefore, since the assembly of the drive with certain housing components in the United States does not result in a substantial transformation the article or its container must be marked to indicate the country of origin of the article.

With regard to the drive, power cord, USB cable assembly, power adapter, CDs with software and blank DVD, imported marked with their respective country of origin, Section 134.26, Customs Regulations (19 CFR 134.26) is 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. It is important to note that the procedures set forth at 19 CFR 134.26 apply only to articles which are legally marked at the time of importation. If the articles are not legally marked at the time of importation, the presentation to Customs of the certification and notice to subsequent purchasers or repackers specified in 19 CFR 134.26 will not serve to satisfy the importer’s obligations under 19 U.S.C. 1304 and Part 134, Customs Regulations (19 CFR Part 134).

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. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

As per Mr. Erickson of Iomega Corporation, the proposed retail packaging in the U.S. will be a sealed package, ready for retail sale without any further packaging. With that in mind, the sealed retail package should be marked as follows or in a similar manner with the country of origin for the following items:

CDRW Drive made in Korea
Power adapter, USB cable, power cord, software CD-ROMs made in China Blank DVD made in Taiwan

The proposed marking of the sealed package as described above, legibly and in a conspicuous location, would satisfy the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. This would be an acceptable country of origin marking for the Iomega Super DVD+/-RW/RAM 8X4X Drive Ext. USB 2.0 AM.

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 Eileen S. Kaplan at 646-733-3016.

Sincerely,

Robert B. Swierupski
Director,

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