COUNTRY OF ORIGIN MARKING OF IMPORTED COVERS, RINGS AND NOTEBOOKS

N216796 June 6, 2012 MAR-2 OT:RR:NC:N4:421 CATEGORY: MARKING Ms. Wanda Hensley Avery Dennison Office and Consumer Products Company 50 Pointe Drive Brea, CA 92821 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED COVERS, RINGS AND NOTEBOOKS Dear Ms. Hensley: This is in response to your letter dated April 30, 2012, requesting a ruling on the country of origin and the marking requirements of plastic covers, plastic binder rings and complete binder ring notebooks. A sample of a notebook of the same type of construction, though not marked with any country of origin, was submitted for review and is being returned. The plastic notebook covers and the plastic binder rings are made in China. These covers and rings will be assembled in Mexico with paper that is made in the United States to form a notebook. The finished product is then shipped back to the United States. Although the plastic notebook covers and rings will be shipped in bond from Los Angeles to Mexico, you note that there is a possibility that on occasion they might enter the commerce of the United States. The assembly process in Mexico includes punching holes in the plastic covers by machine and combining the punched plastic covers, the binder rings and the paper sheets to form a notebook. The rings are solid circular discs with raised ridges. The plastic covers and sheets are punched with mushroom shaped holes that are open at the “stem” ends. The punched plastic covers and punched paper sheets are pushed onto the ridges of the discs by means of the slit in the stem end of the holes. Because of the shape of the holes, the covers and paper sheets roll freely around the raised ridges of the discs. The sample notebook is constructed with 11 discs or rings. You ask whether it is acceptable to mark the containers in which the covers and rings will be imported, rather than individually mark the covers and rings. You plan to mark the containers for the covers and rings “Made in China.” You also inquire whether the finished notebook can be marked “Made in Mexico.” 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 instance, the imported plastic covers and plastic rings, whether or not they enter the commerce of the United States, will be substantially transformed as a result of the further processing, making the manufacturer of the notebooks the ultimate purchaser of the imported covers and rings. Under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin. Marking the containers to indicate “China,” therefore, will meet the country of origin marking requirements both for those covers and rings that are shipped directly in bond to Mexico, as well as for any covers and rings that enter the commerce of the United States. The covers, binders and paper undergo a substantial transformation when manufactured to form a finished notebook. The completed notebook with paper must be marked with the country of origin. Your proposed marking “Made in Mexico” is acceptable, provided the marking is legible, conspicuous and permanent. 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 Joan Mazzola at (646) 733-3023. Sincerely, Thomas J. Russo Director National Commodity Specialist Division