MAR-2-05 CO:R:C:S 558734 MLR
Mr. Arvind K. Suri
J.F. Moran Co., Inc.
20 Avery Road
Cranston, Rhode Island 02910
RE: Country of origin marking of plaster figurine; painting;
substantial transformation
Dear Mr. Suri:
This is in reference to your letter of March 25, 1994, to
U.S. Customs in New York, requesting a ruling regarding the
country of origin marking requirements of certain plaster
figurines. Samples of the finished and unfinished figurines were
submitted with your request.
FACTS:
Plaster figurines with Christmas motifs will be imported
from Uruguay with a sticker "Made in Uruguay" at an approximate
price of $1.95 each. In the U.S., the plaster figurine will be
hand painted and finished by skilled artisans. The retail price
of the finished figurines is approximately $180.00. Because the
value added in the U.S. by the painting is so great in comparison
to its imported state, you do not wish to mark the figurine "Made
in Uruguay."
ISSUE:
Whether the painting of the plaster figurines constitutes a
substantial transformation, thereby excepting the figurines from
country of origin marking.
LAW AND ANALYSIS:
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 imported into the U.S. shall be marked
in a conspicuous place as legibly, indelibly, and permanently as
the nature of the article (or 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.
Congressional intent in enacting 19 U.S.C. 1304 was "that the
ultimate purchaser should be able to know by an inspection of the
marking on the imported goods the country of which the goods is
the product. The evident purpose is to mark the goods so that at
the time of purchase the ultimate purchaser may, by knowing where
the goods were produced, be able to buy or refuse to buy them, if
such marking should influence his will." United States v.
Friedlaender & Co. Inc., 27 CCPA 297, 302, C.A.D. 104 (1940).
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and the exceptions of
19 U.S.C. 1304. Section 134.1(b), Customs Regulations {19 CFR
134.1(b)}, defines "country of origin" as the country of
manufacture, production or growth of any article of foreign
origin entering the U.S. 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" within the meaning of the marking laws and
regulations.
For country of origin marking purposes, a substantial
transformation of an imported article occurs when it is used in
the U.S. in manufacture, which results in an article having a
name, character, or use differing from that of the imported
article. In such circumstances, the manufacturer or processor in
the U.S. who converts or combines the imported article into the
different article will be considered the "ultimate purchaser" of
the imported article, and the article is excepted from marking
and only the outermost container is required to be marked. See
19 CFR 134.35.
In Headquarters Ruling Letter (HRL) 732964 dated August 3,
1990, Customs determined that ceramic bells hand painted in the
U.S. were not substantially transformed. The bells were imported
from Taiwan in a cast and fired condition, and were sanded,
filled, sprayed with a base paint, hand painted with a
Southwestern design, and sprayed with a fixative in the U.S. The
ruling quotes T.D. 89-21 which states that Customs "continues to
adhere to its position that the mere decoration of porcelain ware
does not constitute a substantial transformation." See also HRL
707057 dated December 10, 1976; HRL 058996 dated June 21, 1979;
HRL 724978 dated July 13, 1984; and HRL 735595 dated August 2,
1994.
Consequently, based on the rulings above, since the plaster
figurines are not substantially transformed in the U.S. by the
hand painting operations, they must be clearly marked to indicate
to the ultimate purchaser their country of origin. However, the
figurines may be described as being hand painted in the U.S, as
long as the country of origin of the figurines is indicated by
the use of the words "made in", "product of", or other words of
similar meaning, in close proximity to the U.S. reference and in
at least a comparable size. 19 CFR 134.46. Accordingly, the
marking "Hand Painted in USA, Made in Uruguay" on the bottom of
the figurines would satisfy the requirements of 19 CFR 134.46.
HOLDING:
On the basis of the information submitted, we find that the
imported plaster figurines are not substantially transformed by
being hand painted in the U.S. The ultimate purchaser is the
consumer who purchases the hand painted figurines and not the
U.S. processor. Therefore, the figurines must be marked so as to
clearly indicate their country of origin, Uruguay, to the
ultimate purchaser. However, the marking "Hand Painted in USA,
Made in Uruguay" on the bottom of the figurines in the same size
print would satisfy the requirements of 19 CFR 134.46.
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is entered. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division