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