MAR 2-05 CO:R:V:C 733632 RSD
Mr. Patrick H. Monahan
The Thomas Monahan Company
202 N. Oak Box 250
Arcola, Illinois 61910
RE: Country of origin marking requirements for imported mop
hardware; substantial transformation; 19 CFR 134.35
Dear Mr. Monahan:
This is in response to your letter of June 18, 1990,
requesting a binding ruling regarding the country of origin
marking requirements of mop hardware imported from Taiwan.
FACTS
The Thomas Monahan Company imports mop hardware from Taiwan
and sells it to mop manufacturers. The manufacturers attach the
hardware to a wooden mop handle with rivets. The manufacturer
usually also attaches a yarn mop head to the hardware, but some
mop handles and hardware are sold without the mop heads so that
the customer can add his own mop head. The cost of the mop
hardware is $.75, and the cost of the handle is $.60. The mop
head costs $1.20, and the rivets cost $.02.
ISSUE:
Does the attachment of mop hardware to a wooden handle and
in some cases a mop head constitute a substantial transformation?
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 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.
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. 27 C.C.P.A. 297 at 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. The case of U.S. v. Gibson-Thomsen Co., Inc., 27
C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in
manufacture which results in an article having a name, character
or use differing from that of the constituent article will be
considered substantially transformed. Accordingly, the
manufacturer or processor who converts or combines constituent
materials into different articles will be considered the ultimate
purchaser of the constituent materials. If the manufacturer is
the ultimate purchaser, the imported article is excepted from
marking (see section 134.35, Customs Regulations, 19 CFR 134.35).
A mop is basically comprised of two components: a mop head
and a mop handle. Customs has determined that neither of these
components is substantially transformed by their attachment to
one another and that each piece must be separately marked to
indicate its country of origin. See HQ 731398, October 4, 1989
and HQ 732896, April 5, 1990.
The mop handle generally consists of a long wooden or metal
piece used to hold the mop and hardware (metal or plastic) which
is used to attach the mop head. The country of origin of the mop
handle is generally considered to be the country where the long
wooden or metal piece is made. The hardware is said to lose its
separate identity when it is attached to the handle and becomes
an integral part of that handle. The long piece is considered to
be the major component of the handle. Thus, in HQ 731398, supra
Customs ruled that imported plastic pieces were substantially
transformed when attached with a U.S. made metal handles.
However, in 732896, supra, Customs ruled that imported handles
were not substantially transformed when they were assembled with
the U.S. hardware. In this case, it is the hardware that is
imported. A U.S. made wooden handle is attached after
importation. In accordance with the above discussion we find
that the hardware loses it separate identity and become an
integral part of the U.S. made wooden handle when it is attached.
As such, the mop manufacturer substantially transforms the
hardware into an integral component of a new and different
article i.e., a mop handle. Thus the mop manufacturer is the
ultimate purchaser of the mop hardware. Upon importation, only
the containers for the mop hardware must be marked to show the
country of origin of the mop hardware.
However, the attachment of the handle to the mop head does
not result in a substantial transformation. If the mop head is
of foreign origin, it must be marked to indicate its country of
origin.
HOLDING:
When the mop hardware is attached to the wooden the handle
it loses its separate identity and is substantially transformed.
Accordingly the individual mop hardware is excepted from the
country of origin marking and the only the mop hardware's
containers must be marked with the country of origin of the mop
hardware upon importation.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch
CC: Chief NIS, Branch 1
New York Seaport
(853695)