THE COUNTRY OF ORIGIN MARKING OF STERLING SILVER CHARM ENHANCER NECKLACE

N055903 April 21, 2009 MAR-2 OT:RR:E:NC:N4:433 CATEGORY: MARKING Susan Byrne, Manager Tiffany & Co. 15 Sylvan Way Parsippany, NJ 07054 RE: THE COUNTRY OF ORIGIN MARKING OF STERLING SILVER CHARM ENHANCER NECKLACE Dear Ms. Byrne: This is in response to your letter dated March 25, 2009, requesting a ruling on a country of origin determination for a sterling silver 16 inch charm enhancer necklace. A photo of the necklace was provided with reference points listing the different parts of the necklace. The sterling silver components of the necklace are listed: 16 inch (16-26) oval link chain with county of origin United States; 2 inch link chain with country of origin United States; lobster clasp with country of origin United States; and circle clasp country of origin Italy. The circle clasp of Italian origin is for purchasers of the necklace to hang charms onto – the charms are not part of the finished necklace. It is stated that the circle clasp of Italian origin costs $10.80; the 16 inch oval link chain of U.S. origin costs $3.48; the lobster clasp of U.S. origin costs $0.32; and the 2 inch link chain of U.S origin costs $0.24. Assembly of the necklace will be undertaken in the United States. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. In Section 134.1 (b), the country of origin of an article is defined 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 for country of origin marking purposes. A substantial transformation of an imported article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the imported article. The addition of a circle clasp from Italy to an already fabricated oval link chain from the United States does not change the essence of the cut from spool United States chain into a new and different article of commerce; it is rather a continuation in the manufacturing process of the oval link chain on its way to becoming a charm enhancer necklace. As no substantial transformation occurs, the essential character of the necklace is imparted by the United States oval link chain, resulting in the country of origin of the necklace to be the United States. See HQ 562868 dated June 1, 2004. If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase “Made in the USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S. 19 CFR 134.1 (b) is not applicable for North American Free Trade Agreement (NAFTA) claims, as country of origin marking rules for a NAFTA claim are determined in accordance with 19 CFR 102 – Rules of Origin. Per Subpart I [Advance Ruling Procedures], Section 181.92(5)(i) [Definitions and general NAFTA advance ruling practice.], this Office has no authority to issue rulings on goods exported from the U.S. to other NAFTA countries (Canada or Mexico). A list of addresses from which advance rulings for exports into Canada or Mexico can be requested is located at the U.S. Customs and Border Protection website at www.cbp.gov (click on Trade, Trade Programs, International Agreements, International Free Trade Agreements, North American Free Trade Agreement, Advance Rulings). 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 Neil H. Levy at (646) 733-3036. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division