MAR-2-94: OT:RR:NC:N4:433
Vincetta Turbett
Import Compliance Specialist
Panalpina, Inc.
8500 Haggerty, Suite 100
Van Buren Township, MI 48111
RE: THE COUNTRY OF ORIGIN MARKING OF CUT AND SEWN FABRIC AND LEATHER FURNITURE PARTS
Dear Ms. Turbett:
In your letter dated May 3, 2009, on behalf of LZB Manufacturing, you requested a ruling on whether imported fabric and leather furniture parts may be excepted from the individual country of origin marking requirement on the basis of sections134.32 (d) of the Customs Regulations. Representative images were submitted with your letter for review. The disk you submitted will be retained by this office.
At issue are cut and sewn fabric and leather furniture parts to be incorporated into seats and sofas in the United States. These fabric and leather furniture parts are packed and shipped in cartons to be delivered to the manufacturer’s U.S. factory, where the parts will be further assembled into finished articles used in the furniture industry. You note that the finished product will have a name, character or use differing from that of the imported item. These fabric and leather furniture parts are a component of the furniture and are not meant to be removeable. The cartons for these articles will be marked “Made in China.”
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 container) will permit, in a way that indicates to the ultimate purchaser in the United States the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
The regulation further provides 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 that results in a substantial transformation. However, if the manufacturing process is merely a minor one which leaves the identity of the imported article intact, 19 CFR §134.1(d)(2) provides that the consumer or user of the article who obtains the article after the processing will be regarded as the ultimate purchaser.
According to United States v. Gibson-Thomsen Company, Inc., 27 CCPA 267 (C.A.D.98), a U.S. manufacturer is considered to be an ultimate purchaser if a manufacturing process is performed on an imported item so that the item is substantially transformed in that it loses its identity and becomes an integral part of a new article will a new name, character or use. The court determined that in such circumstances, the imported article is excepted from individual marking. Only the outermost container is required to be marked. See Sections 134.32(d) and 134.35(a), Customs Regulations (19 CFR §134.32(d), 19 CFR 134.35(a)).
Based on company provided information, we are satisfied that LZB Manufacturing is taking cut and sewn fabric and leather furniture parts imported into the United States, and further assembling them into finished articles used in the furniture industry. It is our opinion that the marking of the outermost container “Made in China” satisfies the marking provisions.
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, contact National Import Specialist Neil H. Levy at (646) 733-3036.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division