MAR-2-05 CO:R:C:V: 731307 EAB
Mr. David P. Schulingkamp
M.G. Maher & Company, Inc.
442 Canal Street
New Orleans, LA 70130
Re: Country of origin marking requirements for imported
metal castings
Dear Mr. Schulingkamp:
This is in response to your letter of March 7, 1988, re-
questing a ruling on country of origin marking requirements for
imported metal castings. We regret the delay in responding.
FACTS:
Metal castings are imported by your client, who uses them
solely as component parts in the assembly of butterfly valves,
gate valves and fire hydrants. You have provided a photograph of
a casting and a photocopy of several valves and fire hydrants in-
dicating the point of attachment of one or more castings to each
unit. You state that the castings are never used as saleable
parts, and that the attachment of the castings to the various
valves and fire hydrants substantially transforms the castings.
ISSUE:
Whether imported metal castings used as component parts of
gate valves, butterfly valves and fire hydrants are substantially
transformed such that the castings are excepted from country of
origin marking.
LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304), provides, subject to specified exceptions, that every ar-
ticle 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 container) will per-
mit, 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. The primary purpose of the country of origin marking
statute 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 the product, if such marking
should influence his will." United States v. Friedlaender & Co.,
27 CCPA 297 (1940), as quoted with approval in National Juice
Products Association v. United States, 10 CIT 48, 628 F. Supp.
978 (1986).
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements of and exceptions to
19 U.S.C. 1304. Pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR
134.32(d), an exception from individual marking is applicable
where the marking of a container of such article will reasonably
indicate the country of origin of such article to the ultimate
purchaser. The "ultimate purchaser" is defined in 19 CFR
134.1(d) as generally the last person in the U.S. who will
receive the article in the form in which it was imported. It is
specifically provided in 19 CFR 134.35 that a manufacturer may be
the ultimate purchaser if he converts or combines an imported
article into an article with a new name, character or use. In
such case, the article shall be excepted from marking under 19
U.S.C. 1304(a)(3)(D), and the outermost containers of the
imported articles shall be marked in accordance with Part 134.
From the photograph and photocopy that you submitted, the
imported article clearly appears to be a casting known as a
follower ring. Customs has previously ruled that as the result
of a manufacturing process consisting of the combination of im-
ported follower rings with other U.S. components, the follower
rings lose their separate identity and become integral components
of a new and different article of commerce. The manufacturer who
assembled the follower rings into flanged coupling adaptors was
held to be the ultimate purchaser, and the imported follower
rings were excepted from marking. Only the outermost containers
of the follower rings had to be marked, see Customs Ruling HQ
080135, dated June 29, 1987.
In the described circumstances, the manufacturing process to
which your client subjects the imported follower rings results in
new and different articles of commerce in which the follower
rings lose their separate identities and become integral compo-
nents of gate valves, butterfly valves and fire hydrants; there-
fore, pursuant to 19 CFR 134.35, your client is the ultimate
purchaser of the imported follower rings.
HOLDING:
Imported castings known as follower rings which are to be
used with other U.S. components in the manufacture of gate
valves, butterfly valves and fire hydrants are excepted from
individual marking pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR
134.35, provided: (1) the containers in which the castings are
imported are properly marked to indicate the country of origin of
the castings; (2) Customs officers at the port of entry are
satisfied that these castings will reach the valve or fire
hydrant manufacturer in the original marked containers in which
the castings are imported; and, (3) the castings will only be
used in the manufacture of gate valves, butterfly valves and fire
hydrants, as described above and not otherwise gold. Statements
to this effect must be submitted for each entry for which this
exception applies.
Sincerely,
John Durant, Director
Commercial Rulings Division