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NY L83287





March 22, 2005

MAR-2 RR:NC:1:117 L83287

CATEGORY: MARKING

Mr. Ray Knott
UTi, United States, Inc.
1600 Delmar Drive
Folcroft, PA 19032

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED STEEL CHAIN.

Dear Mr. Knott:

This is in response to your letter dated March 9, 2005 on behalf of your client, Harrington Hoists Inc., requesting a ruling on whether imported lengths of chain 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.

Harrington Hoist, Inc produces and markets hoists for use in many different industries. The chain is imported in marked barrels and depending on the order and industry source, Harrington Hoists cuts and installs the chain into their hoists. At times, cut pieces are sent to Harrington’s distributors to be installed as per the customer’s requirements in Harrington hoists. In these cases, the chain is sent to the distributor in packaging that is marked “Contents Made In Japan”. Harrington does not sell chains to the general public, only to their distributors to install specifically on their machinery.

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.

In both these cases, the imported lengths of chain are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported chain and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin "Made in Japan".

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 Gloria Stingone at 646-733-3020

Sincerely,

Robert B. Swierupski
Director,

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