MAR-2 RR:CR:SM 561392 KSG

Jay Fisher
Materials Manager
Interex
8447 E. 35th St. N.
Wichita, Kansas 67226-1344

RE: Country of origin marking of insulated electric conductors; substantial transformation; 19 CFR 134.35(a)

Dear Mr. Fisher:

This is in response to your letter dated April 12, 1999, requesting a country of origin marking ruling regarding imported insulated electric conductors. A sample was submitted for our examination.

FACTS:

The imported article is an insulated electric conductor which is an electrical cable with pin connectors at each end used to connect computers to printers or other peripheral devices. The cable and connectors are made in Taiwan. In China, the cable is cut to length and the connectors are attached to the cable.

ISSUE:

What is the country of origin of the imported electric conductors?

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LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930 (19 U.S.C. 1304), as amended, 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 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 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 manufacture, which results in an article having a name, character, or use differing from that of the imported article. If the manufacturing or combining process is a minor one which leaves the identity of the imported article intact, a substantial transformation has not occurred and an appropriate marking must appear on the imported article so that the consumer can know the country of origin. See Uniroyal Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (CIT 1982). Assembly operations which are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. See C.S.D. 80-111, C.S.D. 85-25, and C.S.D. 90-97.

In Headquarters Ruling Letter (“HRL”) 560214, dated September 3, 1997, Customs held that where wire rope cable was cut to length, sliding hooks were put on the rope, and end ferrules were swaged on in the U.S., the wire rope cable was not substantially transformed. Customs concluded that the wire rope maintains its character and does not lose its identity and become an integral part of a new article when attached with the hardware. In HRL 555774, dated December 10, 1990, Japanese

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wire cut to length and electrical connectors crimped onto the ends of the wire was not a substantial transformation. In HRL 557253, dated May 11, 1994, Customs held that the assembly of coaxial electrical connector cables with connectors was not a second substantial transformation.

In this case, it is our opinion that the cutting of the cable to length and assembly of the cable to the connectors in China does not result in a substantial transformation. Therefore, pursuant to 19 CFR 134.1(b), the country of origin of the imported cable with the electric conductors will be Taiwan.

HOLDING:

The cutting of the cable to length and assembly of the cable to the connectors in China does not result in a substantial transformation. Therefore, pursuant to 19 CFR 134.1(b), the country of origin of the imported electric conductors will be Taiwan.

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