MAR 2-05 CO:R:C:V 734679 LR
J. Andrew Porter, Esq.
Corrent & Marchi
Le Chateau, Suite 300
33 Ouellette Avenue
Windsor, Ontario, Canada
N9A 4J1
Dear Mr. Porter:
RE: Country of origin marking of welding gun manufactured
partially in Canada and partially in the United States;
assembly; 19 CFR 10.22.
Dear Mr. Porter:
This is in response to your letter dated June 1, 1992,
requesting a ruling on behalf of W. Tregaskiss Ltd. of Windsor,
Canada, regarding the country of origin marking of a welding gun
know as the Tough Gun.
FACTS:
The Tough Gun is a welding gun which consists of thirteen
parts. As specified in the submitted brochure, these parts
include: the slip-on nozzles; contact tips; copper gas diffuser;
nozzle retainer and shock washer; aluminum armored gooseneck;
aluminum body; connector cone and cone nut; one piece handle; self
cleaning switch and housing; unicable assembly; quick connect power
pin; conduit liners; and quick connect block and feeder adaptor
system. The function of the various parts is described in the
brochure. Some of the parts are made entirely in the U.S. and some
entirely in Canada. Others are made partially in each country.
No details regarding the manufacture or cost of the various parts
were submitted. However, from the brochure, it does not appear
that any one part is the main or essential component.
Presently, the Tough Gun is assembled in Canada. You ask
whether these products may be marked "Made in Canada of U.S.
components". You also indicate that W. Tregaskiss Ltd. is
contemplating transferring part of the manufacturing/assembly
process to the U.S. and ask whether these products would be
considered products of the U.S. for country of origin marking
purposes.
ISSUE:
What is the proper country of origin for Tough Guns which are
either assembled in Canada or the United States of U.S. and
Canadian components?
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 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.
Section 134.1(b), Customs regulations indicates that the
country of origin is the country of manufacture, production, or
growth of any article of foreign origin entering the United States.
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 this
part. A substantial transformation occurs when the work or
material added changes the name, character or use of the article
in question.
Tough Guns Assembled in Canada
The substantial transformation test is not used to determine
the marking requirements for imported products which are eligible
for importation under Subpart 9802.00.80, Harmonized Tariff
Schedule of the United States (HTSUS). Subheading 9802.00.80
provides that articles assembled abroad in whole or in part of
fabricated components, the product of the United States, which (a)
were exported in condition ready for assembly without further
fabrication, (b) have not lost their physical identity in such
articles by change in form, shape, or otherwise, and (c) have not
been advanced in value or improved in condition abroad except by
being assembled and except by operations incidental to the assembly
process, are subject to a duty upon the full value of the imported
article, less the cost or, if no charge is made, the value of such
products of the United States. 19 CFR 10.22 provides that
assembled articles entitled to the exemption are considered
products of the country of assembly for the purposes of 19 U.S.C.
1304 (whether or not the assembly is a substantial transformation).
Customs has determined that under this regulation, the article in
question may be marked simply with the name of the country of
assembly, or the name of the country of assembly preceded by words
such as "Made in" or "Assembled in". The origin of the components
may be identified as well. If the product consists entirely of
U.S. components, a marking such as "Assembled in from
material of U.S. origin" may be used. If some foreign components
are used, both the U.S. and foreign components should be
identified. See Headquarters Ruling Letter (HRL) 731507, October
17, 1989.
In this case, while no details of the assembly process were
furnished, it appears that one or more of the U.S. components of
the Tough Gun are eligible for the exemption under subheading
9802.00.80. Based on this assumption, the provisions of 19 CFR
10.22 apply and Canada would be considered the country of origin.
Your proposed marking, "Made in Canada of U.S. components" should
be modified either to include the fact that some of the components
are Canadian or should omit all reference to the origin of the
components. Any of the following would constitute acceptable
markings: "Canada"; "Made in Canada"; "Assembled in Canada"; "Made
(or Assembled) in Canada of U.S. and Canadian components".
If none of the components of the Tough Guns are eligible for
importation under subheading 9802.00.80 HTSUS, the marking
requirements would hinge on whether or not the Canadian processing
substantially transforms the U.S. parts into products of Canada.
As explained below, insufficient information has been provided to
make a definite determination on that issue.
Tough Guns Assembled in the United States
The Customs Service does not makes determinations regarding
products which may be marked "Made in U.S". Those decisions are
rendered by the Federal Trade Commission. However, assuming that
a foreign product which is to be further manufactured in the United
States is substantially transformed by such manufacturing, the
Customs Service regards such manufacturer as the ultimate
purchaser. In such case, the imported product itself need not be
marked with its country of origin so long as the container in which
it is imported is marked and Customs is satisfied that this marked
container will reach the ultimate purchaser unopened. See 19 CFR
134.35
Based on the information submitted we cannot determine
definitely whether the assembly/manufacturing processes which you
contemplate in the United States would constitute a substantial
transformation so as to render Tregaskiss Ltd. the ultimate
purchaser. Further details about the various parts, including
their method and cost of manufacture, and details about the
assembly/manufacturing process to be performed in the United States
would be required. If you would like to pursue this matter
further, we suggest that describe in detail each step which occurs
in the manufacture of the Tough Gun and provide relevant cost
information.
HOLDING:
Assuming that one or more of the components of the Tough Gun
assembled in Canada from U.S. and Canadian components is eligible
for importation under subheading 9802.00.80, HTSUS, the marking
"Made (or assembled) in Canada from U.S. and Canadian components"
or any of the other markings indicated above would satisfy the
requirements of 19 U.S.C. 1304.
Sincerely,
John Durant, Director