MAR-2:OT:RR:NC:N1:105
M. Jason Cunningham
Sonnenberg & Cunningham PA
780 Fifth Ave South, Suite 200
Naples, FL 34102
RE: The country of origin marking of soap dispensers.
Dear Mr. Cunningham:
This is in response to your letter dated February 1, 2019, requesting a ruling on the country of origin marking for soap dispenser pumps on behalf of your client, Delta Faucet Company. Descriptive literature and pictures were provided with your request.
The items under consideration are manually-operated kitchen and bath soap dispensers that are mounted through a hole in a countertop, so that the soap dispensing nozzle is visible and accessible above the countertop, but the soap reservoir, pump, and most of the parts are beneath the countertop.
The soap dispensers consist of following components: a shank, two washers, nut-mounting, bottle, mump assembly, flange, adapter, header, two screws, liner, cover, and header outlet. You provide two scenarios of manufacturing processes for the soap dispensers.
In the first scenario, you state that the header, cover, adapter, screws, liner tube, header outlet, and flange are made in China. The shank, washer, nut-mounting, reservoir bottle, and all components for the valve assembly, which consists of three injection molded components, o-ring, and metal spring, are made in Taiwan. The Chinese components, except for the flange, are assembled into a head assembly in China, and exported to Taiwan for final assembly of the soap dispensers.
In the second scenario, you state that the header, cover, and flange are made in China and sent to Taiwan for further processing and final assembly. The shank, washer, nut-mounting, reservoir bottle, adapter, screws, liner tube, header outlet, and all components for the valve assembly, which consists of three injection molded components, o-ring, and metal spring, are made in Taiwan.
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. 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 (1940). 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 (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 imported article is excepted from marking. The outermost containers of the imported article shall be marked. (See 19 CFR 134.35). In determining whether the combining of parts or materials constitutes a substantial transformation, the issue is the extent of operations performed and whether the parts lose their identity and become an integral part of a new article. Belcrest Linens v. United States, 6 CIT 204, 573 F.Supp. 1149 (1983), aff'd, 2 Fed.Cir. 105, 741 F.2d 1369 (1984). Assembly operation which are minimal or simple, as opposed to complex or meaningful, will generally not result in a substantial transformation. See, C.S.D. 80-111, 85-25, 89-118, 90-51 and 90- 57. In HQ 735368 (June 30, 1994), we noted that the bicycle frame was the most costly component and one of the essential components of the bicycle (if not the most essential component) imparting to the bicycle its overall shape, size and character. In that case, the tubing for the bicycle frame was made in Taiwan, and the tubes were welded together to make the frames in Taiwan. In addition, all the other components of the bicycles were assembled together in Taiwan to make the finished bicycle. Because the bicycle was assembled in Taiwan and one of the bicycle's most significant components, the frame, was made in Taiwan, we found that the country of origin of the bicycle was Taiwan. Although the other components came from several different countries, when they were assembled together in Taiwan they each lost their separate identity and became an integral part of a new article of commerce, a bicycle. Accordingly, it was determined that the bicycle must be marked to indicate that its country of origin was Taiwan.
Based on the information you provided, because the soap dispensers are assembled in Taiwan, and the main components of the soap dispensers, the valve assembly and the reservoir are made in Taiwan, we find that the country of origin of the soap dispensers will be Taiwan. Therefore, the manually-operated kitchen and bath soap dispensers are considered products of Taiwan for marking purposes at the time of importation into the United States.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division