CLA-2-86:S:N:N1:106 806662

Mr. Elliot Jay Seley
American Rail Components, Inc.
575 Madison Avenue, Suite 1006
NY, NY 10022

RE: The tariff classification of bolsters and side frames for freight car truck assemblies from South Africa

Dear Seley:

In your letter dated February 7, 1995 you requested a tariff classification ruling. You also asked for country of origin marking information.

You state you intend to import cast steel bolsters and side frames which are to be incorporated into truck assemblies for railroad freight cars. These articles are important loading bearing members of such assemblies. The applicable subheading for the bolsters will be 8607.19.3010, Harmonized Tariff Schedule of the United States (HTS), which provides for bolsters for truck assemblies of railroad freight cars. The duty rate will be 5.1 percent ad valorem.

The applicable subheading for the side frames will be 8607.19.3020, HTS, which provides for side frames for truck assemblies of railroad freight cars. The duty rate will be 5.1 percent ad valorem.

Articles classifiable under subheading 8607.19.3010 and 8607.19.3020, HTS, which are products of South Africa are entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. With regard to your country of origin marking question, the marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) 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.

As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.

Part 134, Customs Regulations (19 CFR Part 134), also provides for exceptions, in certain circumstances, from the marking requirements found in 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. 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 and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.

In this case, the imported bolsters and side frames will be substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported articles and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director
New York Seaport