MAR-2-05 CO:R:C:V 735275 RC
Mr. Harry Klein
D. Klein & Son.,
60 Industrial Road
Lodi, New Jersey 07644
RE: Country of origin marking for Umbrellas; Assembly.
Dear Mr. Klein:
This is in response to your letter of July 14, 1993,
requesting a ruling on the country of origin marking requirements
for umbrellas. Samples of the components and a completely
assembled umbrella were submitted for examination.
FACTS:
Your company plans to import into the U.S., for domestic
assembly, the following umbrella components: Taiwanese fabric
covers (sewn together in China), and Taiwanese frames, handles,
and ferrules. The U.S. assembly operation entails: (1) placing
covers on frames; (2) putting on fabric puffs; (3) screwing on
ferrules; (4) tacking covers on frames; (5) releasing ties;
(6) threading ribs; (7) threading tips; (8) steaming;
(9) folding; (10) bagging; and (11) packing the umbrellas.
ISSUE:
Whether the following marking satisfies the requirements of
19 U.S.C. 1304:
RN 20394 - 100% NYLON
COVER MADE IN CHINA
ASSEMBLED IN THE USA OF AMERICAN AND IMPORTED PARTS
LAW AND ANALYSIS:
The marking statute, section 304, Tariff Act of 1930, as
amended (19 U.S.C. 1304), provides that, unless excepted, every
article 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 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
exceptions of 19 U.S.C. 1304.
The "ultimate purchaser" is defined generally as the last
person in the U.S. who will receive the article in the form in
which it was imported. 19 CFR 134.1(d). The "country of origin"
for marking purposes is defined by section 134.1(b), Customs
Regulations (19 CFR 134.1(b)), to mean the country of
manufacture, production, or growth. 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" for marking purposes.
An article used in manufacture resulting in a new article
having a different name, character, or use will be considered
substantially transformed. If the manufacturing process is a
minor one which leaves the identity of the imported article
intact, the consumer or user of the article, who obtains the
article after the processing, will be regarded as the "ultimate
purchaser." 19 CFR 134.1(d)(1) and (2). On the other hand, if
processing or manufacturing in the U.S. results in a new and
different article, the manufacturer or processor is the ultimate
purchaser and the manufactured article is excepted from country
of origin marking pursuant to 19 CFR 134.35.
Customs has not previously considered the assembly of
umbrellas with respect to substantial transformation. However,
in HQ 734214 (November 18, 1991), Customs considered whether an
assembly in China of Taiwanese fishing rod components constituted
a substantial transformation. The ruling found that it did not,
because the assembly of the foreign components in China did not
result in the manufacture of a new and different article in that
the assembly operation was simple and the foreign component parts
did not lose their identity (no change to the physical dimensions
of the components occurred). Accordingly, Customs ruled that the
country of origin of the fishing rods was the place where the
components were made (Taiwan) and not the place where the simple
assembly took place (China).
Likewise, here, we find the sewing of the covers in China
and the assembly of the covers, frames, handles, and ferrules
into umbrellas in the U.S. to be simple operations, that is, not
effecting a substantial transformation. It is our opinion that
the imported components are not converted into a new and
different article. They remain articles of Taiwanese origin and
are required, pursuant to section 304 to be marked as such when
delivered to the ultimate purchaser.
Your proposed marking, which simply indicates that the parts
are imported, does not satisfy the requirement of section 304
that the name of the country of origin of the foreign articles be
indicated. Ordinarily, such indication is given by stating the
name of the country together with the words "Made in" or "Product
of". These words are required when the marking is accompanied,
as here, with a reference to the U.S., which is not the country
of origin.
Customs does not object to the accompanying phrase
"Assembled in the U.S.A.", provided that such marking does not
suggest the U.S. as the country of origin and that, as indicated
above, the name of the article(s) country of origin is stated in
accordance with Tariff Act requirements. For Customs purposes,
the phrase "Assembled in" is not considered to refer to an
article's origin except in limited circumstances not applicable
here. We understand from your submission that the Federal Trade
Commission has approved "Assembled in U.S.A." for use on the
assembled umbrellas.
HOLDING:
The completed umbrellas are required to indicate the country
of origin of the foreign components to comply with 19 U.S.C.
1304. Thus, for U.S. Customs purposes, the following marking
indicating the country of assembly as well as the country of
origin is acceptable:
RN 20394 - 100% NYLON
PRODUCT OF TAIWAN
ASSEMBLED IN U.S.A.
It is assumed that you have secured appropriate assurances
from the Federal Trade Commission that the phrase "Assembled in
U.S.A." would be acceptable. You may also indicate that the
cover is sewn in China; however, it is not necessary.
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: Steven Ecklund
Division of Enforcement