THE COUNTRY OF ORIGIN MARKING OF A CHECK SCANNER MACHINE

N033222 August 11, 2008 MAR-2 OT:RR:NC:1:120 CATEGORY: MARKING Mr. Richard C. Katz Snell & Wilmer LLP One South Church Avenue Suite 1500 Tucson, AZ 85701-1630 RE: THE COUNTRY OF ORIGIN MARKING OF A CHECK SCANNER MACHINE Dear Mr. Katz: This is in response to your letter dated July 10, 2008, requesting a ruling on behalf of your client, Panini, S.p.A, for a country of origin determination and whether the proposed marking "Assembled in China" is an acceptable country of origin marking for the imported Panini “Vision X” check scanner machine. A marked sample was submitted with your letter for review. The Panini “Vision X” check scanner machine is a compact check scanner designed to accomplish check capture. It automatically scans the front and/or back of a check while simultaneously capturing the magnetic ink character recognition code line. The scanner also incorporates an ink jet printer for printing the back of the check. The “Vision X” is connected to a PC (personal computer) by means of a USB (universal serial bus) 2.0 connection. When a check is scanned, the data is momentarily held in the internal volatile memory of the scanner before being sent via USB to an attached PC for storage and processing. The principal mechanical and plastic components of the machine are produced in Italy, while the main printed circuit board of the “Vision X” is manufactured in China. The main board performs the major functions of the machine, including: driving the motors and photocells for the paper handling; the digitalization of the data coming from the scanners and magnetic reading head; transferring the data from the scanners and magnetic reading head to the PC; driving the ink jet printer; and providing serial port communication. The memory chips, including volatile SDRAM and SRAM, and non-volatile EEPROM and serial flash memory, were all manufactured in the United States, but were assembled to the main board and programmed in China. Additionally, the scanner is driven by two motors, one for the track and the other for the feeder; both are made in China, as are three photocells used by the scanner to determine the position of the check. All of the components of the Panini “Vision X” Scanner are assembled into the final article in China. The "country of origin" is defined in 19 CFR 134.1(b) as "the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the 'country of origin' within the meaning of this part.” For tariff purposes, the courts have held that a substantial transformation occurs if a new and different article emerges having a distinctive name, character or use. Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). We find that the China-sourced printed circuit board provides the essence of the scanner. Therefore, the country of origin for the Panini “Vision X” Scanner will be China. 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. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. Section 134.43(e), Customs Regulations (19 CFR 134.43(e)) provides that where an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such articles may be marked in a manner such as the following: (1) Assembled in (country of final assembly); (2) Assembled in (country of final assembly) from components of (name of country or countries of origin of all components); or (3) Made in, or product of, (country of final assembly). The use of “assembled in” is appropriate, as is the use of “made in” or “product of”, followed by the name of the country of final assembly. The Panini “Vision X” Scanner is both a product of and assembled in China; therefore, the proposed marking “Assembled in China” is acceptable. The proposed marking of the imported Panini “Vision X” check scanner machine, as described above, is conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the imported Panini “Vision X” check scanner machine. 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 Denise Faingar at 646-733-3010. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division