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NY M86046




September 5, 2006

CLA-2-85:RR:NC:1:108 M86046

CATEGORY: CLASSIFICATION

TARIFF NO.: 8526.92.0000

Mr. Christopher Garcia
Kuehne + Nagel, Inc.
Corporate Customs Brokerage Division
8200 Boggy Creek Road, Ste. 600
Orlando, FL 32824

RE: The tariff classification and marking of radio remote control devices from China.

Dear Mr. Garcia:

In your letter dated August 7, 2006, on behalf of Lear Corporation, you requested a tariff classification and a marking ruling. Samples are being returned as requested.

The subject merchandise, based on the submitted information, is radio transmitters, which are referred to as the “Remote Keyless Entry” systems, which operate on a RF signal in the capacity of radio remote control apparatus. By a radio signal, these devices control various functions of an automobile. When programmed to the same radio frequency of a receiver, incorporated in the automobile, they operate, for example, to open the trunk or to unlock the door.

The applicable subheading for these radio remote control devices will be 8526.92.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Radar apparatus, radio navigational aid apparatus and radio remote control apparatus: Other: Radio remote control apparatus. The rate of duty will be 4.9 percent ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

In regard to marking, it is also requested whether these devices are required to be individually marked with the country of origin if they are later to be processed in the U.S. by a U.S. manufacturer.

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 this case, the subject radio remote control devices, being programmed to an automobile’s receiver, are found to have lost their identity in becoming a part of the automobile. In this regard, they are substantially transformed as a result of the U.S. processing; therefore the U.S. auto manufacturer is the ultimate purchaser of the imported merchandise and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be 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 Michael Contino at 646-733-3014.

Sincerely,

Robert B. Swierupski
Director,

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