NY R00243 - THE COUNTRY OF ORIGIN MARKING OF A DVD DRIVE - United States International Trade Commision Rulings

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NY R00243

April 15, 2004

MAR-2 RR:NC:1:110 R00243

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 and marking for the importation of a DVD CDRW Drive from Korea. A marked sample was not submitted with your letter for review.

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 China for completion and final assembly into an external drive, and packaging with other related items. The completion of the drive in China 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 performed in China.

The General Rules of Interpretation (GRIs) of the Harmonized Tariff System (HTS) governs the classification of goods put up in sets for retail sale. GRI 3(b) provides, in relevant part, that goods put up for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. The Explanatory Notes (ENs) of the HTS provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. According to the ENs for GRI 3(b), “goods put up in sets for retail sale” refers to goods which: consist of at least two different articles which are, prima facie, classifiable in different headings; consist of products or articles put up together to meet a particular need or carry out a specific activity; and are put up in a manner suitable for sale directly to users without repackaging.

As imported, the Iomega external DVD CDRW drive meets the definition of “goods put up in sets for retail sale.” As per GRI 3(b), classification is determined by the component, or components taken together, which confer on the set as a whole its essential character. The DVD drive provides the essential character of this set. However, the mere inclusion of an item in a collection 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 China which would effect a substantial transformation as required in order to render China as the country of origin.

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. 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.

As per Mr. Erickson of Iomega Corporation, the proposed retail packaging in China will be a sealed package, ready for retail sale without any further packaging. With that in mind, the sealed 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 imported 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 imported 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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