MAR-2-05 CO:R:C:V 731828 jd
Harold I. Loring, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, New York 10017
RE: Country of origin marking requirements applicable to imported
valve components
Dear Mr. Loring:
This is in rely to your letter of October 6, 1988,
concerning the application of country of origin marking
requirements to imported valve components. We regret the delay
in responding.
FACTS:
According to your submission, your client is seeking an
exception from the requirement of individual country of origin
marking for components used in the domestic assembly of three
lines of valves. Two lines are hand-operated ball valves in
various sizes with either threaded or solder ends. The third is a
line of automatic atmospheric vacuum breaker valves in various
sizes used to prevent back-siphonage.
The foreign components used in assembly of the ball valves
are the valve body, in certain larger valves an adapter, and
fasteners. The valve body is the housing into which are
assembled components of U.S. origin that make up the functioning
part of the valve itself. The U.S. parts are the ball, seats,
stem, packing nut, stem packing, handle and thrust washer. In
the line of ball valves which pe~its in-line servicing, there
are additional U.S. parts, i.e., seals.
The foreign components used in the automatic atmospheric
vacuum breaker valve are the valve body and hood. U.S.
components consist of the bonnet and guide stem assembly, disc
holder assembly and disc, and an "o" ring. A name plate used is
also of U.S. origin.
ISSUE:
Are valve bodies, and in some instances adapters, imported
for use in the manufacture of either ball valves or automatic
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atmospheric vacuum breaker valves substantially transformed by
such manufacture so as to make the importer/manufacturer the
ultimate purchaser of the bodies and adapters?
AND ANALYSIS:
Section 304 of the Tariff Act of 1930, as amended (19
U.S.C. 1304), provides that every article of foreign origin (or
its container) imported into the United States shall be 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 an ultimate purchaser in the United
States the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the
requirements and exceptions of 19 U.S.C. 1304.
Section 134.35, Customs Regulations (19 CFR 134.35),
implementing the principle of U.S.v. Gibson-Thomsen Co., Inc.,
27 C.C.P.A. 267 (C.A.D. 98), provides that an article used in the
U.S. in manufacture which results in an article having a name,
character, or use differing from that of the imported article
will be considered substantially transformed, and therefore the
manufacturer or processor in the U.S. who converts or combines
the imported article into the different article will be
considered the ultimate purchaser of the imported article within
the contemplation of 19 U.S.C. 1304(a). Accordingly, the article
shall be excepted from marking. However, in accordance with 19
U.S.C. 1304(b) and S 134.22, Customs Regulations (19 CFR 134.22),
the outermost container of the imported article shall be marked
to indicate the country of origin of the article.
Customs ruling 729335 (April 18, 1986) concerned the
country of origin marking requirements of plumbing valves, and
large and small ball valves. In the case of the plumbing valves,
finished body castings and finished bonnet castings were combined
in the U.S. with valve stems, discs, disc screws and handwheels
to make a complete plumbing valve. It was determined that the
imported plumbing valve components (as well as the components of
large and small ball valves) were substantially transformed by
the manufacturing process in the U.S. The imported components
were combined with domestic parts to produce a new and different
article of commerce. The imported components were said to "lose
their separate identity" in the finished product. Accordingly,
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the importer/manufacturer was held to be the ultimate purchaser
of the imported articles and they were excepted from individual
marking pursuant to ~ 134.35, Customs Regulations.
HOLDING:
Imported Componed. ts for ball valves, consistino of valve
bodies and adapters, are substantially transformed by their
assembly with balls, seats, stems, packing nuts, stem packing,
handles and thrust washers, to produce complete ball valves.
Imported components for automatic atmospheric vacuum
breaker valves, consisting of valve bodies and hoods, are
substantially transformed by their assembly with bonnets, guide
stem assemblies, disc holder assemblies, discs and "o" rings, to
produce complete automatic atmospheric vacuum breaker valves.
In consideration of the above, the importer of the
specified valve components who uses them in the manufacture of
completed valves is the ultimate purchaser of those components for
country of origin marking purposes. Accordingly, the
components are excepted from individual country of origin
marking. However, the outermost container of the components
reaching the ultimate purchaser must be marked to indicate the
country of origin of the components. Customs officials at the
port of entry must be satisfied that such container will reach
the ultimate purchaser unopened and the valve components will be
used for the stated purpose.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch