United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 2006 NY Rulings > NY M87323 - NY M87371 > NY M87357

Previous Ruling Next Ruling
NY M87357

---

November 8, 2006

MAR-2 RR:NC:1:102 M87357

CATEGORY: MARKING

Mr. Donald S. Simpson
Barthco Trade Consultants
5101 S. Broad Street
Philadelphia, PA 19112-1404

RE: THE COUNTRY OF ORIGIN MARKING OF METAL CASTINGS FOR HYDRAULIC UNITS

Dear Mr. Simpson:

In your letter dated October 4, 2006 you requested a ruling on an exception from the country of origin marking requirements for imported articles on behalf of your client Southland Metals.

The articles in question are castings for hydraulic units. Part number 703-5320-900 is a flange casting. Part numbers 703-8912-003 and 703-8912-001 are body castings. The castings are to be imported by Southland Metals for use exclusively by their customer, Parker-Hannifin, in the production of hydraulic units. Parker-Hannifin machines and assembles the castings into finished hydraulic units and does not resell the castings in their condition as imported as separate parts for after market consumption. Further, you indicate that Parker-Hannifin is aware that China is the country of origin of the imported articles.

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 C.F.R. Part 134 implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304.

Pursuant to section 134.35, Customs Regulations (19 C.F.R. §134.35), an imported article that is substantially transformed in the U.S. is excepted from individual country of origin marking and only the outermost containers of the imported articles must be marked with the country of origin. An article is substantially transformed if it is “so processed in the U.S. that it loses its identity in a tariff sense and becomes an integral part of a new article having a new name, character and use.” U.S. v. Gibson-Thomsen Company, Inc., 27 CCPA 267 (1940).

In light of the machining and assembly operations performed by Parker-Hannifin, we find that the imported castings, when incorporated with other components to produce hydraulic units, are substantially transformed into articles with a new name, character or use.

In accordance with 19 C.F.R. §134.35, Parker-Hannifin is the ultimate purchaser of the castings imported by Southland Metals. The castings are excepted from individual marking provided that the port director at the port of entry is satisfied that they are imported in properly marked containers and that the ultimate purchaser, Parker-Hannifin, will receive the castings in these containers.

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 Kenneth T. Brock at 646-733-3009.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling