MAR-2-05 CO:R:C:V 734859 ER
Mr. Peter B. Lange
President
Legacy Lamp Company
P.O. Box 1567
Round Rock, TX 78680/2551
RE: Country of Origin Marking of Imported Lamp Parts;
Substantial Transformation; Domestic Assembly; Essential
Character; 19 CFR 134.35.
Dear Mr. Lange:
This is in response to your letter dated September 29, 1992,
in which you request a ruling regarding the country of origin
marking requirements for imported lamp parts which are assembled
into lamps after importation into the United States.
FACTS:
Legacy Lamp is an assembler/manufacturer of electric
portable lamps. Approximately 35 percent of Legacy Lamp
Company's ("Legacy") lamp parts are imported from countries such
as Taiwan, China, Korea, Mexico and Canada. The parts involved
in the assembly include items such as bases, pipes, sockets,
felt, glass middles, brass castings, caps, etc. Legacy
manufactures approximately one hundred varieties of lamps using
both foreign and domestic components. Additionally, Legacy
manufactures the lamp shades to be attached to the lamps after
assembly. Legacy is seeking an exception to country of origin
marking for the imported lamp parts which are used in the
assembly of finished lamps subsequent to their importation. This
request for an exception to marking does not apply to those lamps
which are imported as unassembled lamps in kits. By telephone
conversation on February 10, 1993, Legacy informed Customs that
Legacy does not import any fully assembled or semi-assembled
lamps nor does Legacy import assembled lamp shades.
ISSUE:
What are the country of origin marking requirements for
imported lamp parts which are assembled subsequent to importation
with domestic parts to create finished lamps?
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 United States 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 United
States 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. 1034.
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 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 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 imported
article is excepted from marking. The outermost containers of
the imported articles, however, shall be marked. 19 CFR 134.35.
Although no written description of the assembly process was
provided with your submission, based on previous rulings
involving lamps we are aware that such an assembly involves
processes such as joining the parts with screws, nuts and bolts,
gluing and soldering. In analogous circumstances, in HQ 730837
(June 10, 1988), Customs held that the assembly of a typewriter
from numerous parts was a substantial transformation of the parts
and the country of assembly was the country of origin of the
typewriter. The assembly involved the same sort of processing as
that performed in the instant case. Also like the instant case,
the components were imported into the country of assembly in a
finished condition and were physically joined to the emerging new
article, losing their separate identities.
In HQ 734503 (July 20, 1992), a ruling involving the marking
requirements for a cut crystal piece used in making an electric
lamp, Customs found that the crystal piece did not lose its
identity by virtue of its assembly into a lamp and that,
accordingly, the country of origin of the crystal had to be
identified in the marking legend on the assembled lamp. By
contrast in the instant case, no single component imparts the
essential character of the lamp and indeed, the lamp's essential
character is non-existent until the various components are
assembled.
The instant situation is also different from one in which
the domestic assembly involves the piecing together of partially
assembled lamps because the essential character of the partially
assembled lamps would already be that of a lamp and hence, no
substantial transformation would result. Similarly, an exception
to marking would not apply where lamps are imported as kits
because such kits already contain the essential character of the
lamp, although in unassembled form.
Based on these considerations, and provided the containers
in which the imported lamp parts are properly marked with country
of origin in accordance with section 134.32(d), Customs
Regulations (19 CFR 134.32(d)), we find that Legacy is the
ultimate purchaser of the imported lamp parts and that the parts
are excepted from marking pursuant to section 134.35, Customs
Regulations (19 CFR 134.35).
HOLDING:
Pursuant to 19 CFR 134.35 and in accordance with the
conditions described in this ruling, imported lamp parts are
excepted from country of origin marking so long as their
outermost containers are properly marked at the time of
importation. Customs officials must be satisfied at the time of
importation that the parts are entirely unassembled and are
destined for use by Legacy exclusively in the production of lamps
as described above.
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: Port Director
Austin, Texas