MAR 2-10 RR:TC:SM 559799 KBR
William J. Rodemoyer
Director of Purchasing & Traffic
Wheatland Tube Company
1 Council Avenue
Wheatland, PA 16161
RE: Marking of Pipe, NAFTA
Dear Mr. Rodemoyer:
This is in response to your letter dated April 15, 1996,
concerning the marking of pipe imported from Canada and processed
in the U.S. with the country of origin marking, "Made in U.S.A."
FACTS:
You state that your company buys raw electric resistance
welded pipe hollows in double random lengths from Canada. For
purposes of this ruling we are assuming that these "pipe hollows"
are a product of Canada. You state that the pipe hollows as
imported have "saw-cut ends not machined", have not been tested,
straightened, coated, or certified to a particular end use.
After importation, you state that your plant in Pennsylvania
cuts the individual pipe hollow into two pieces, machine bevels
both ends, mechanically straightens the piece, hydrostatically
tests the piece to 3000 P.S.I., nondestructive eddy current tests
each piece to insure weld integrity, stencils the pipe for end
use specification, and either coats the pipe with clear lacquer
or hot dip galvanizes the pipe. You wish to mark this finished
pipe "Made in U.S.A."
ISSUE:
May the processed pipe be marked "Made in U.S.A."?
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. Friedlander & 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) of the regulations 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 this part; however, for a good
of a NAFTA country, the NAFTA marking rules
will determine the country of origin.
(Emphasis added).
Section 134.1(g) of the regulations, defines a "good of a
NAFTA country" as an article for which the country of origin is
Canada, Mexico, or the U.S. as determined under the NAFTA marking
rules. The NAFTA marking rules are set forth in 19 CFR Part 102,
as amended.
Section 134.35(b), provides that:
A good of a NAFTA country which is to be
processed in a manner that would result in the
good becoming a good of the United States under
the NAFTA Marking Rules is excepted from
marking. Unless the good is processed by the
importer or on its behalf, the outermost
container of the good shall be marked in accord
with this part.
Section 102.11, Customs Regulations ("Marking Rules")(19 CFR
102.11) sets forth the required hierarchy for determining
country of origin for marking purposes. Section 102.11(a) of the
regulations states that "[t]he country of origin of a good is the
country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic
materials; or
(3) Each foreign material incorporated in that good
undergoes an applicable change in tariff classification
set out in section 102.20 and satisfies any other
applicable requirements of that section, and all other
requirements of these rules are satisfied."
Since the pipe is neither wholly obtained or produced in a
single country nor produced exclusively from domestic materials,
102.11(a)(1) and (2) are not applicable. Therefore, it must be
determined whether pursuant to 102.11(a)(3), the foreign
materials incorporated into the pipe meet the specific tariff
rule of 102.20. The finished pipe will be classified within
heading 7305, HTSUS (Harmonized Tariff System of the United
States) or 7306, HTSUS, depending on the dimension of the pipe.
Thus, the specific tariff rule for these goods is set out in
section 102.20(n) (Section XV: Chapters 72 through 83) of the
regulations, which states: "A change to heading 7301 through
7307 from any other heading, including another heading within
that group." The unprocessed pipe imported into the U.S. will
fall within the same heading as the processed pipe. Therefore,
the pipe does not meet the necessary tariff shift.
The next step in the hierarchy, 19 CFR 102.11(b), states
that where 102.11(a) cannot be used to determine the origin of
the good, the country of origin will be the country or countries
of origin of the single material that imparts the essential
character to the good. Pursuant to section 102.18(b)(1)(iii),
the Canadian pipe hollows impart the essential character to the
finished pipe. Therefore, pursuant to 19 CFR 102.11(b), the
country of origin of the finished pipe is Canada.
Further, you should be aware that even if Customs had
determined that the pipe was a product of the U.S., this ruling
would not have addressed whether the pipe may be marked with the
U.S.A. symbol. The determination of whether a good may be marked
"Made in USA" under any circumstances is under the primary
jurisdiction of the Federal Trade Commission and not this
Service. We therefore recommend that you contact the Federal
Trade Commission, Division of Enforcement, located at 6th and
Pennsylvania Avenue, N.W., Washington, D.C. 20580, for any views
concerning marking a product which is of U.S. origin with the
"USA" symbol.
HOLDING:
Based on the information submitted, after processing, the
pipe is a product of Canada, and must bear the appropriate
country of origin marking.
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is entered. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division