The tariff classification of insulated wire from Taiwan

N034995 August 20, 2008 CLA-2-85:OT:RR:NC:N1:112 CATEGORY: Classification TARIFF NO.: 8544.42.9000 Ms. Cynthia A. Benway Import/Export Compliance Manager Taco, Inc. 1160 Cranston Street Cranston, Rhode Island 02920 RE: The tariff classification of insulated wire from Taiwan Dear Ms. Benway: In your letter dated July 21, 2008, you requested a tariff classification and marking ruling. The samples which you submitted are being retained by this office. The items concerned are insulated wire harness assemblies and insulated lead wire assemblies. Both items incorporate connectors. They have a voltage rating of 600 volts. Both of these items are components of a circulator which is manufactured by Taco, Inc. Once imported into the United States, Taco, Inc. will use both of these electrical conductors in the assembly of a complete circulator. The applicable subheading for the insulated wire harness assemblies and insulated lead wire assemblies will be 8544.42.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Insulated wire, cable, and other insulated electric conductors…: Other electric conductors, for a voltage not exceeding 1,000 V: Fitted with connectors: Other: Other.” The rate of duty will be 2.6%. 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/. You proposed in you ruling request that these articles be exempted from Country of Origin marking requirements based on the fact that a substantial transformation occurs when theses conductors are 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 imported insulated wire harness assemblies and insulated lead wire assemblies are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer, Taco, Inc., is the ultimate purchaser of the imported products and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin “Taiwan”. 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 Steve Pollichino at (646) 733-3008. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division