MAR-2-05 CO:R:C:V 734671 AT
James P. Sullivan, Esq.
Sullivan & Lynch, P.C.
156 State Street
Boston, Massachusetts 02109
RE: Country of origin marking of imported metal picture frames to
be assembled into picture frames; combining; substantial
transformation
Dear Mr. Sullivan:
This is in response to your letter of May 27, 1992, on
behalf of The HB Group, requesting a ruling on the country of
origin of imported picture frames. A sample of a partially
assembled picture frame and cost breakdowns were submitted for
examination.
FACTS:
You state that The HB Group intends to import brass and
silver-plated picture frames from China. You also state that the
production of the picture frames will involve processing in two
countries, Hong Kong and China. The metal portions of the
picture frames, which constitute the actual frames, are
manufactured in Hong Kong. They are made of either brass or
silverplate and are available in a variety of sizes (3 X 5, 4 X
6, 5 X 7 and 8 X 10). The metal frames are shipped to China
where they are polished, the brass frames are lacquered and the
silverplate frames are plated. The metal frames are combined
also in China with a piece of glass, plastic backs, velvet
easels, hinges, and face paper to yield into finished picture
frames.
You contend that the assembly and polishing operations
performed in China do not constitute a substantial
transformation, and therefore the country of origin of the
finished imported picture frames is Hong Kong.
ISSUE:
What is the country of origin of the imported metal picture
frames that are processed under the conditions described above?
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.
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 transform-
ation in order to render such other country the "country of
origin" within the meaning of Part 134. A substantial
transformation occurs when articles lose their identity and
become new articles having a new name, character, or use. Koru
North America v. United States, 12 CIT 1120, 701 F.Supp. 229
(1988). The question of when a substantial transformation occurs
is a question of fact to be determined on a case-by-case basis.
Uniroyal Inc. v. United States, 3 CIT 220, 542 F.Supp. 1026
(1982), aff'd, 1 Fed.Cir. 21, 702 F.2d 1022 (1983).
In HQ 733037 (August 13, 1990), Customs ruled that imported
wood frames were not substantially transformed when assembled
into finished picture frames in the U.S. Customs stated that the
imported wood frames are not only important to the finished
product, but also are the very essence of the finished article in
that the imported frame possesses all the essential qualities of
the finished picture frame. Customs further stated that the
physical appearance of the final product, which is a very
important characteristic of a decorative item such as this, is
determined by the imported wood frame.
Similarly, in this case, we find that the metal frames are
not substantially transformed as a result of the assembly
operations performed in China. Like the wood frames in HQ
733037, the imported metal picture frames possess all the
essential qualities of the finished picture frame. Furthermore,
the physical appearance of the final product, which is a very
important characteristic of a decorative item such as these brass
and silverplated picture frames, is determined by the imported
metal frames. Accordingly, the country of origin of the finished
metal picture frames is Hong Kong.
HOLDING:
The country of origin of imported brass and silverplated
picture frames processed in the manner described above is Hong
Kong.
Sincerely,
John Durant, Director
Commercial Rulings Division