Country of origin marking of valve components to be assembled in the U.S.

NY G87260 March 13, 2001 MAR-2 RR:NC:1:102 G87260 CATEGORY: MARKING Mr. J.F. Chester Braumiller & Rodriquez, LLC Post Office Box 1321587 Dallas, Texas 75313-1587 RE: Country of origin marking of valve components to be assembled in the U.S. Dear Mr. Chester: In your letter dated February 8, 2001 you requested a ruling on an exception from country of origin marking requirements for articles imported by your client Flow Design. The articles are described as components of “canisters and cartridges” used in valves for heating, ventilating and air conditioning (HVAC) systems. You explain that the only difference between a canister and a cartridge is that canisters are larger than three inches in diameter, while cartridges are three inches or less in diameter. Descriptive information and samples were provided. The specific components in question are identified as a canister bottom, piston canister and canister top. The imported components are assembled with other components, including a spring, shim and pin, to form a complete canister, or cartridge depending on the sizing of the components. Although the canister bottom is a finished component ready for assembly in its condition as imported, the piston canister and canister top must undergo significant machining before assembly into a completed canister. You infer that the imported components are to be used solely in the assembly of canisters and cartridges by your client and will not be sold in their condition as imported. You request that the canister bottom, piston canister and canister top be excepted from individual marking because they are substantially transformed by machining and/or assembly operations performed by Flow Design, and that Flow Design is the ultimate purchaser of these imported components. 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 USC 1304. 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 the manufacturer 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. Pursuant 19 CFR 134.35, in such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. Based on the information presented and examination of the samples provided, we find that Flow Design is the ultimate purchaser of the subject components. In accordance with 19 CFR 134.35, the canister bottom, piston canister and canister top, provided that they are used by Flow Design in the assembly of canisters or cartridges for HVAC valves and not sold separately in their condition as imported, are excepted from individual marking. Only the outermost containers of the imported articles must be marked with country of origin. 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 212-637-7026 . Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division