MAR-2-05 COR:C:V 733837 RSD
Ms. Susan Parker
Schenkers Forwarders, Inc.
965 Norfolk Square
Norfolk, Virginia 23502
RE: Country of origin marking requirements for imported hacksaw
blade blanks; grinding teeth 19 CFR 134.35; substantial
transformation
Dear Ms. Parker:
This is in response to your letter dated October 2, 1990,
requesting a binding ruling on the country of origin marking for
imported hacksaw blade blanks.
FACTS:
Your customer, the Disston Company (Disston), intends to
import hacksaw blade blanks from China. The blanks will be
punched from steel to the correct length and width for processing
in the U.S. In the U.S., further processing will grind teeth on
to the blade blanks, file sharpen the teeth, print and package
the product for sale at retail. Disston requests a ruling that
the marking of the container, in which the blades are imported,
in lieu of marking the blades themselves is acceptable. A sample
of a blade blank and two sample finished hacksaw blades were
submitted with the ruling request.
ISSUE:
What are the country of origin marking requirements for
imported hacksaw blade blanks which are processed in the U.S.?
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. Friedlaender & 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), 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
transformation in order to render such other country the "country
of origin" within the meaning of the marking laws and
regulations. The case of U.S. v. Gibson-Thomsen Co., Inc., 27
C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in
manufacture which results in an article having a name, character
or use differing from that of the constituent article will be
considered substantially transformed. In such circumstances the
U.S. manufacturer is the ultimate purchaser. The imported article
is excepted from individual marking and only the outermost
container is required to be marked. (see 19 CFR 134.35).
Customs ruled in HQ 740134, February 6, 1987, that the
grinding of geometrically shaped teeth on to blank saw blades and
other minor processing substantially transformed the blank saw
blade into a new article of commerce. It was noted that without
the teeth the finished item could not function and that the
creation of the teeth determines the essential character of the
finished blade. In this case, Disston will also be grinding the
teeth on to the imported hacksaw blade blanks along with other
minor processing. Based on HQ 740134, we conclude that the
processing of the blanks in the U.S., is a substantial
transformation, and in accordance with 19 CFR 134.35, Disston
would be considered the ultimate purchaser of the blade blanks.
Therefore, the individual blank blades are excepted from country
of origin marking. Only the outer containers in the which the
blade blanks are imported must be marked with the country of
origin.
HOLDING:
The processing of imported hacksaw blade blanks by grinding
teeth into them is a substantial transformation and the U.S.
processor is the ultimate purchaser. Accordingly, the imported
blanks are excepted from individual country of origin marking
provided: the district director is satisfied that the blanks will
be used only in the manner described above and not otherwise
sold, the outermost cartons in which the blades are imported are
marked with the country of origin, and the ultimate purchaser
will receive the blades in this carton.
Sincerely,
John Durant, Director
Commercial Rulings Division