MAR-2-05 RR:TC:SM 559912 KR
Lisa C. Schneider
Associated Customhouse Brokers, Inc.
Water Tower Park
1099 Jay Street, Bldg. C-5
Rochester, NY 14692-2670
RE: Country of Origin Marking for Components of a Microscope
Dear Ms. Schneider:
This is in response to your letter dated June 17, 1996, on
behalf of Leica, Inc., requesting a ruling regarding the country
of origin marking requirements for imported components of a
microscope. We regret the delay in responding.
FACTS:
Leica, Inc. packages and sells components of a microscope to
customers in the U.S. who will assemble the components into a
complete microscope. You state that the microscope body is made
in China, and after importation is packaged in a styrofoam
packing frame with the remaining components necessary to assemble
a complete microscope. The body is sometimes also sold
separately as a replacement part, in which case it may be shipped
in its own box or may be packed together with other ordered
parts. You state that the majority of the components are made in
China. The eyepiece and an occasional objective are made in
Japan. You wish to know if the microscope body must be marked
with its country of origin or if the container of the entire set
of components may be marked with only one country of origin. If
the microscope body is being sold as a spare part, you ask if it
may be marked by an adhesive label on the styrofoam packing frame
rather than on the body itself. A copy of the installation
instructions which depicts the unit and the name of each
component was submitted for our review.
ISSUE:
What is the appropriate country of origin and marking of the
microscope components and the microscope body.
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 (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 134.35(a), Customs Regulations (19 CFR 134.35(a)),
states that the manufacturer or processor in the U.S. who
substantially transforms the imported articles into articles
having a new name, character or use will be considered the
ultimate purchaser of the imported article within the scope of 19
U.S.C. 1304. In such cases, the article will be excepted from
marking, although the outermost container in which the articles
are transported to the U.S. processor must be marked with the
origin of the articles.
A substantial transformation occurs when articles lose their
identity and become new articles having a new name, character, or
use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at 270
(1940); Koru North America v. United States, 12 CIT 1120, 701 F.
Supp. 229 (1988).
In determining whether the combining of parts or materials
constitutes a substantial transformation, the issue is the extent
of operations performed and whether the parts lose their identity
and become an integral part of the new article. Belcrest Linens
v. United States, 6 CIT 204, 573 F. Supp. 1149 (1983), aff'd, 2
Fed. Cir. 105, 741 F.2d 1368 (1984). However, if the
manufacturing process is merely a minor one which leaves the
identity of the imported article intact, the consumer or user of
the article after the processing, will be regarded as the
"ultimate purchaser." 19 CFR 134.1(d)(2). In Uniroyal, Inc., v.
U.S., 542 F. Supp. 1026, 3 CIT 220 (CIT 1982), imported shoe
uppers combined with domestic soles in the U.S. were held to be
the "essence of the completed shoe" and therefore, not
substantially transformed.
In the instant case, we do not find that the packaging of
the components together by Leica constitutes a substantial
transformation since the unassembled components do not become an
integral part of a new article. The foreign components retain
their own identity. The installation instructions picture each
piece individually and refer to each piece with its imported name
and part number. Accordingly, the country of origin of each
components must be indicated on each component or on the
outermost container in which these articles will reach the
customers who assemble the microscopes. If only few components
are not products of China, you may individually list the products
which are not products of China and then state "All other parts
are made in China".
If the microscope body is shipped as a spare part, and the
microscope body has its own styrofoam frame which is distinct
from the packaging of any other included parts, then marking the
styrofoam with the country of origin of the microscope body is
acceptable.
HOLDING:
The components imported by Leica, Inc. for a microscope are
not substantially transformed by being packaged together.
Therefore, the individual country of origin of each component
must be marked either on the components or on the container in
which the components will reach the ultimate purchaser in the
U.S. If the microscope body is shipped as a spare part, the
styrofoam packing containing the microscope body may be marked by
using an adhesive label on the styrofoam, as long as any other
parts with a different country of origin have separate packing
which will be marked with that part's country of origin.
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.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division