MAR-2-05 CO:R:C:V 733717 NL
District Director
U.S. Customs Service
P.O. Box 619050
1205 Royal Lane
Dallas/Ft. Worth, Texas 75261
RE: Country of Origin Marking - Malleable Iron Castings for
Meter Swivels; Pipe Fittings; Connectors; 7307.19.90, HTSUS;
Substantial Transformation; 19 U.S.C. 1304(c).
Dear Sir:
This in response to your request for internal advice dated
August 3, 1990 (your file MAR 2-D:C TP) which was submitted to
this office at the request of Central Plastics (Central) of
Shawnee, Oklahoma. The advice of this office is sought with
respect the country of origin marking requirements for certain
castings which are used by Central to produce pipe fittings known
as swivel meters. These articles are used to connect natural gas
supply lines to gas meters in individual homes.
FACTS:
The imported castings are substantially the same as the
castings for unions and dialectrics considered by this office in
HQ 732883 (August 1, 1990), which was issued to Central. The
processing which Central performs on the castings after
importation to produce swivel meters is also substantially the
same. Where noted, we apply the findings of the prior ruling to
the instant circumstances.
The castings as imported are in two forms, swivels and nuts.
After importation they are subjected to extensive threading,
boring, and machining. After an injection molding machine has
applied a nylon gasket to the swivel, the two pieces (swivel and
nut) are fitted together to form the meter swivel. It is then
tested using high voltage for electrical leaks.
It is the opinion of your office that this processing
effects a substantial transformation such that Central is the
ultimate purchaser of the imported castings. In consequence,
your office believes that country of origin marking requirements
may be satisfied by marking the containers in which the castings
reach Central. Alternatively, you would permit the castings to
be excepted from country of origin marking on the basis that the
ultimate purchaser (Central) must necessarily know the country of
origin of the castings by reason of the circumstances of their
importation. See 19 CFR 134.32(h).
Separately, Central has received a ruling from the National
Import Specialist, New York Seaport, concerning the
classification of the imported castings. That office determined
that the castings were to be classified to subheading 7307.19.90,
Harmonized Tariff Schedule of the United States (HTSUS), which
provides for tube or pipe fittings (for example, couplings,
elbows, elbows, sleeves), of iron or steel, cast fittings, other,
other. NY 859671 (February 14, 1991).
ISSUE:
May the imported castings be excepted from country of origin
marking?
LAW & 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 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.
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304.
In this case we agree with your office that the threading,
boring, machining, and other work performed on the castings by
Central after importation to produce swivel meters effects a
substantial transformation of the castings. As we found in the
prior ruling issued to Central concerning essentially the same
processing, the machining operations change the fundamental
character of the imported castings, enabling them to be used for
a different purpose. We also find that the processing is
comparable to the processing considered in Midwood Industries v.
United States, 64 Cust. Ct. 499, C.D. 4026, 313 F.Supp 951
(1970). See HQ 732883, at p. 3.
Accordingly, pursuant to 19 CFR 134.35, Central is the
ultimate purchaser of the imported castings, and the castings
would ordinarily be eligible to be excepted from individual
country of origin marking. See 19 CFR 134.32(d).
However, by virtue of the determination NY 859671 that the
castings are classifiable as pipe fittings under subheading
7307.19.90, HTSUS, the castings are not eligible for any
exception from country of origin marking. See T.D. 86-15, 20
Cust. B. & Dec. No. 7 (February 19, 1986)(articles classified
under specified provisions are subject to the requirements of 19
U.S.C. 1304(c)). As provided in Section 207 of the Trade and
Tariff Act of 1984, as amended (19 U.S.C. 1304(c)), no exception
from country of origin marking may be approved with respect to
pipes and pipe fittings of iron or steel, which are required to
be marked by means of die stamping, cast-in-mold lettering,
etching, or engraving. If, because of the nature of the article,
it is technically or commercially infeasible to mark a pipe,
tube, or fitting by these methods, paint stenciling is
acceptable. In the case of a small diameter pipe, tube, or
fitting which it is technically or commercially infeasible to
mark, section 207 permits marking by tagging the containers or
bundles.
In light of the requirements of section 207, and New York's
finding that the castings are considered pipe fittings for
classification purposes, this office finds that, notwithstanding
the determination that Central is the ultimate purchaser of the
castings, at the time of importation they must be marked by means
of one of the the methods prescribed in section 207 of the Trade
and Tariff Act, as amended. We note the following, however:
first, as stated in HQ 732883, we do not construe section 207 as
requiring that country of origin marking remain on an article
after it reaches the ultimate purchaser, i.e., Central; second,
to the extent a claim is substantiated that it is technically or
commercially infeasible to mark the castings in the prescribed
manner, paint stenciling would be appropriate. Moreover,
inasmuch as this office determined in TD 86-15 that "small
diameter" would be understood to mean pipes of less than 1.9
inches in diameter, we could determine that fittings for pipes of
that diameter or less would be eligible for marking on their
containers at the time of importation, provided the requisite
showing of technical or commercial infeasibility had been
accepted.
HOLDING:
Although the imported castings are substantially transformed
by processing in the U.S., and Central is their ultimate
purchaser, the castings as imported are required to be marked in
accordance with the requirements of section 207 of the Trade and
Tariff Act of 1984, as amended (19 U.S.C. 1304(c)).
Sincerely,
John Durant
Director, Commercial