THE COUNTRY OF ORIGIN MARKING OF THE DATA OPTIMIZED MODULES FROM MALAYSIA; CORRECTION TO RULING NUMBER N207736

N213156 April 20, 2012 MAR-2 OT:RR:NC:N1:109 CATEGORY: MARKING Melissa Hoffman US Manager, Trade & Compliance Ericsson Inc. 6300 Legacy Drive Plano, TX 75024 RE: THE COUNTRY OF ORIGIN MARKING OF THE DATA OPTIMIZED MODULES FROM MALAYSIA; CORRECTION TO RULING NUMBER N207736 Dear Ms. Hoffman: This ruling is being issued to correct Customs Ruling Number N207736, dated April 3, 2012. The ruling mis-described the manner in which the Data Optimized Module (DOM) A Carrier Indoor Metrocell kit (part #NTBW8913) and the Data Optimized Module (DOM) A Carrier Outdoor Metrocell kit (part #NTBW8912) will be imported. As per your subsequent correspondence, the manner in which the merchandise will be imported is now realized. The entire corrected ruling follows. In your letter dated April 6, 2012, you requested a tariff classification ruling requesting a ruling on whether the proposed marking “Made in Malaysia” is an acceptable country of origin marking for the Data Optimized Module (DOM) A Carrier Indoor Metrocell kit and the Data Optimized Module (DOM) A Carrier Outdoor Metrocell kit. A marked sample was not submitted with your letter. The Data Optimized Module (DOM) A Carrier Indoor Metrocell kit consists of the DOM and all of the necessary materials required for installation of the DOM A on a metrocell indoor frame. A metrocell indoor frame is a CDMA radio base station designed for indoor installations. The customers, primarily telecommunications providers, purchase the DOM A kit in order to increase the capacity of the base station allowing greater use of data services within their networks. The DOM A enables the service provider to deliver broadband wireless data from the base station to the mobile terminal. In addition, the DOM A enables the delivery of fixed wireless DSL services to undeserved areas over a wide geographic area. The DOM A Carrier Indoor Metrocell kit serves the same purpose but includes all of the necessary materials required for installation of the DOM A on a metrocell outdoor frame. In addition to the DOM A, the Indoor Kit also includes the following item: Various cables used to make connections between the DOM A and other modules, Plastic cable ties used to tie wrap cables together and secure them, A surge protector to protect the components from voltage surges, A dummy faceplate to cover empty spaces in the digital shelf, Screws used to secure cable terminal connectors to the frame/ modules or hold down modules to brackets, Flame retardant polypropylene roll for electrical insulation applications in electronic equipment, Heat shrink tubing used to wrap cable wires and/or cover cable connections, and A plastic rail guide placed on the digital shelf to align the DOM A module when pushed onto the shelf. In addition to the DOM A, the Outdoor Kit also includes the following items: Various cables used to make connections between the DOM A and other modules, Plastic cable ties used to tie wrap cables together and secure them, A surge protector to protect the components from voltage surges, A T1/E1 cross connection panel that provides T1/E1 cross connection access, A dummy faceplate to cover empty spaces in the digital shelf, A hex nut used to secure cable terminal co connectors to the frame/ modules or hold down modules to brackets, Screws used to secure cable terminal connectors to the frame/ modules or hold down modules to brackets, Flame retardant polypropylene roll for electrical insulation applications in electronic equipment, Heat shrink tubing used to wrap cable wires and/or cover cable connections, and A grounding cable that forms ground connection between DOM A and the frame base. The materials used for both kit configurations are packaged into kits in Mexico. No further repacking is done after importation onto the United States. The DOM A module is made in Malaysia. You state that the other items are ancillary and are used in the installation of the DOM A into the radio base station. The other kit items have various countries of origin. The kit packaging is marked “Made in Malaysia” to show the country of origin of the DOM A module. The kit packaging also includes an additional label listing the country of origin of the other kit items. You ask if it is sufficient to mark the entire kit as made in Malaysia and if it is necessary to include separate labeling showing the countries of origin of the other kit components. You also ask if it is sufficient to either mark the kit components or ensure the outer carton label listing the kit components spells out the name of each country rather than using the ISO country code. Only the following components are excepted from marking for reasons listed under 19 CFR 134.32 and 19 CFR 134.33: screws, flame retardant polypropylene roll, heat shrink tubing, and plastic cables ties. 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 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 134.1(d) defines the "ultimate purchaser" generally as the last person in the United States who will receive the article in the form in which it was imported. The marking must be conspicuous to the ultimate purchaser. Here, the ultimate purchaser is the person who buys the table hardware kit at retail. The "country of origin" for marking purposes is defined by section 134.1(b), Customs Regulations (19 CFR 134.1(b)), to mean the country of manufacture, production, or growth of any article of foreign origin entering the U.S. When articles manufactured in different countries are combined or assembled, Customs must determine the country of origin, for marking purposes. The country of origin is the country where the article last underwent a "substantial transformation” that is, processing which results in a change in the article's name, character, or use. Section 134.35, Customs Regulations (19 CFR 134.35).Here, the combination of the DOM A module and relatively insignificant materials into kits does not constitutes a substantial transformation because the resulting product is not a new article in which the constituents lose their separate identities. Each item in the kit remains clearly identifiable. Therefore, under section 304 of the Tariff Act, the kits must be marked to indicate to the ultimate purchaser in the U.S. the foreign origin of the items contained therein. 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. Each item is to be individually marked as well as the retail packaging to indicate the country of origin of each item spelled out in English. The proposed marking of imported Data Optimized Module (DOM) A Carrier Indoor Metrocell kit (part #NTBW8913) and the Data Optimized Module (DOM) A Carrier Outdoor Metrocell kit (part #NTBW8912), as described above, is to be conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and the countries of origin of the DOM A and all kit items, unless excepted, is to have an acceptable country of origin marking rather than using the ISO country code. 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 Linda Hackett at (646) 733-3015. Sincerely, Thomas J. Russo Director National Commodity Specialist Division