Country of origin marking of parts of water purification and filtration machines

N302357 February 7, 2019 MAR-2 OT:RR:NC:1:105 CATEGORY: MARKING Mr. Joseph P. Breen Breen Consulting Group 31 3rd Street Suffield CT 06078 RE: Country of origin marking of parts of water purification and filtration machines Dear Mr. Breen: This is in response to your letter dated December 17, 2018, requesting a ruling on behalf of your client, Waterlogic USA, Inc. The issue raised is whether country of origin marking is required on imported parts for use in two models of water purification and filtration machines. A detailed description of the manufacturing process, to which the parts are subjected, was submitted for our review. 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 USC 1304. 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 the manufacturer subjects the imported article to a process which results in a substantial transformation of the article. 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. Pursuant 19 CFR 134.35, in such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. In your submission, you indicate that Waterlogic USA plans to source various parts of water purification and filtration machines produced in China, Korea, India, Hungary and the United Kingdom. Upon importation into the United States, the parts will be used in the manufacture and assembly of complete water purification and filtration machines. You request that the foreign parts be excepted from individual marking because they are substantially transformed by operations performed by Waterlogic USA, and that Waterlogic USA is the ultimate purchaser of the imported parts. You have stated that Waterlogic USA will sell only complete water purification and filtration machines, and will not sell the imported parts as spares or replacements. Based on the detailed information describing the manufacture and assembly of the water purification and filtration machines to be produced by Waterlogic USA, from the foreign sourced components, we find that the parts are substantially transformed into articles with a new name, character or use, when assembled together to produce finished water purification and filtration machines. Accordingly, Waterlogic USA is the ultimate purchaser of the parts in question. In accordance with 19 CFR 134.35, the subject water purification and filtration machines parts, provided they are used by Waterlogic USA in the assembly of completed water purification and filtration machines and not sold separately in their condition as imported, are excepted from individual marking. Only the outermost containers of the imported articles must be marked with country of origin. 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 Anthony E. Grossi at anthony.e.grossi@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division