MAR-2-05 CO:R:C:V 733185 KG
Salvatore E. Caramagno
Ross & Hardies
888 16th Street, N.W.
Washington, D.C. 20006-4103
RE: Country of origin marking of imported golf club grips
Dear Mr. Caramagno:
This is in response to your letter of March 27, 1990,
requesting a country of origin ruling regarding imported golf
club grips.
FACTS:
You contend that foreign-made golf club grips are appearing
in the repair and replacement market which are not marked to
indicate the foreign country in which they were made. The one
piece grips submitted for examination are made of rubber or a
similar material with a hard plastic end. You enclosed
installation instructions for these grips and a regripping kit
which show that the replacement of this type of golf club grip is
a relatively simple operation which can be done by the individual
owner or by a professional golf shop. The only tool required for
assembly is a vise to hold the shaft. A special tape and solvent
are used to attach the grip to the shaft. The operation does not
take much time or special skill. Avid golfers tend to replace
their grips often and it is common to replace them at least once
a season.
ISSUE:
Who is the ultimate purchaser of a one piece replacement
golf club grip?
LAW AND ANALYSIS:
Section 304 of the 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. The Court of
International Trade stated in Koru North America v. United
States, 701 F.Supp. 229, 12 CIT (CIT 1988), that: "In
ascertaining what constitutes the country of origin under the
marking statute, a court must look at the sense in which the term
is used in the statute, giving reference to the purpose of the
particular legislation involved. The purpose of the marking
statute is outlined in United States v. Friedlaender & Co., 27
CCPA 297 at 302, C.A.D. 104 (1940), where the court stated that:
"Congress intended 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."
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. Section 134.1(d), Customs Regulations (19 CFR
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. If an imported article will be used in
manufacture, the manufacturer may be the ultimate purchaser if he
subjects the imported article to a process which results in a
substantial transformation of the article. If an article is to
be sold at retail in its imported form, the purchaser at retail
is the ultimate purchaser."
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), National Juice Products Association v. United States, 10
CIT 48, 628 F.Supp. 978 (CIT 1986), Koru North America v. United
States, 12 CIT ___, 701 F.Supp. 229 (CIT 1988).
Customs ruled in ORR 824-70 (August 24, 1970), that a
manufacturer who purchased imported golf club heads, either
finished or unfinished, and assembled them with shafts and grips
into finished golf clubs was the ultimate purchaser of the
imported golf club heads. The ruling directed that if the
Regional Commissioner of Customs was satisfied that the imported
golf club heads were to be used by an original equipment
manufacturer that the golf club heads were excepted from
individual marking. In HQ 728213 (July 3, 1985), Customs
reiterated its position that the U.S. manufacturer of golf clubs
is the ultimate purchaser of golf club heads which were to be
used in the manufacture of finished golf clubs. In HQ 724901
(April 9, 1984), Customs advised that the ultimate purchaser of
imported golf club grips to be used in the manufacture of golf
clubs was the golf club manufacturer. Customs stated that golf
grips which are imported by golf club manufacturers in the U.S.
are substantially transformed into new and different articles of
commerce, i.e., golf clubs.
Golf club grips imported by golf club manufacturers or
intended to be sold to golf club manufacturers would be excepted
from individual marking if the grips satisfied the provisions of
section 134.35, Customs Regulations (19 CFR 134.35), which
provides that if a U.S. manufacturer substantially transforms
imported articles in the U.S., the imported articles are not
required to be individually marked and only the outermost
container in which the article is imported must be marked.
However, this case involves imported one piece golf club
grips to be used in the repair or replacement market. Golf club
grips are changed at least several times in the life of a club
and an avid golfer might change his grips every season. The
grips are available through catalogues and it does not appear
difficult to install this type of grip onto a finished club.
Merely slipping this type of grip onto a finished club would not
create a new or different article of commerce. There would be no
change in name, character or use. Merely fitting this type of
golf club grip onto a finished golf club is a simple assembly,
which does not constitute a substantial transformation.
Therefore, pursuant to 19 CFR 134.1(d), the ultimate purchaser of
this type of golf club grip to be put on a finished golf club
would be the person who purchases the grip to put it on his or
her golf club.
Since installation services are often provided by a golf
shop, the ultimate purchaser often is not aware of the country of
origin of the grip unless the grip itself is individually marked.
Therefore, imported grips intended to be slipped onto already
finished clubs would have to be individually marked with the
country of origin of the grips. If imported grips are not
marked with their country of origin, certification as to their
end use must be presented to Customs at the time of entry to the
satisfaction of the district director.
HOLDING:
The ultimate purchaser of this type of imported golf club
grip, which is intended for the replacement or repair market, is
the person who purchases the grip for his or her own golf club.
Therefore, this type of imported grip intended for the
replacement or repair market must be individually marked with its
country of origin. Certification as to the end use of the
imported golf grip must be presented to Customs at the time of
entry to the satisfaction of the district director if the
imported grip is not individually marked.
Sincerely,
Harvey B. Fox
Director,
Office of Rulings & Regulations
cc: Commercial Fraud Enforcement Center
Stephanie Castro
ISET
San Diego Customs