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NY M86819

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October 17, 2006

MAR-2 RR:NC:N1:112 M86819

CATEGORY: MARKING

John Griffin
Director of Sourcing,
HID Global
9292 Jeronimo Road
Irvine, CA 92618-1905

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED SHELLS OF CARDS, KEYS AND TAGS

Dear Mr. Griffin:

This is in response to your letter dated September 4, 2006, requesting a ruling on whether imported Proximity Card, Key and Tag shells 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. Samples were submitted for review along with your letter.

The items concerned are shells of Proximity Cards, Proximity Cards with Smart Card Technology, Proximity Cards with Multi-Technology, Proximity Contactless Smart Keys and Proximity Contactless Smart Tags. Per your letter, all of these items, as imported, are shells into which electronic chips with antennas are imbedded by manufacture or assembly within the U.S.

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 imported shells of Proximity Cards, Proximity Cards with Smart Card Technology, Proximity Cards with Multi-Technology, Proximity Contactless Smart Keys and Proximity Contactless Smart Tags are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported shells of Proximity Cards, Proximity Cards with Smart Card Technology, Proximity Cards with Multi-Technology, Proximity Contactless Smart Keys and Proximity Contactless Smart Tags and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin of China, Malaysia, Sweden, Switzerland or The Philippines.

Further, you state in your letter that “HD Global will certify to Customs at the time of importation that the articles which are exempted from Marking will be marked with the Country of Origin after the U.S. processing and will notify the subsequent processor of the requirement to mark the finished article in a conspicuous place as legibly, indelibly and permanently as the nature of the article will permit in such a manner as to indicate to the ultimate purchaser in the United States the English name of the Country of Origin as required by 19 CFR 134.26.”.

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 Richard Laman at 646-733-3017.

Sincerely,

Robert B. Swierupski
Director,

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