CLA-2-84:OT:RR:NC:1:120
Ms. Connie Richards
Markem-Imaje Corporation
150 Congress Street
Keene, NH 03431
RE: The tariff classification and country of origin of a labeling machine
Dear Ms. Richards:
In your letter dated January 12, 2011 you requested a ruling regarding the classification, country of origin and marking of a labeling machine that is processed in the U.S. by a U.S. manufacturer.
The merchandise under consideration is an IC 9040 inkjet printer, which is only capable of printing labels to bottles, cans, or similar containers. The stand-alone machine is contained in a stainless steel cabinet, and does not connect to an automatic data processing machine. It uses inkjet technology to only print the “best before dates”, logo, alphanumeric text and 1D and 2D barcode labels. Software is installed to the machine to program it to perform a labeling function.
You have stated that 45 items imported from various countries are later to be processed in the U.S. by a U.S. manufacturer to complete an IC 9040 inkjet printer. The items include: x-tie wrap, serrated washer, screw CHC, x-Nozzle protector, modulation assembly, x-shutter-Cable bushing, label-front face, main board, plate, umbilical closer, flat cable main board-PC, manual 9040-CD-ROM, stability kit-cabinet, x-housing-reson wires protection, long print head mounting bracket, print mod 9040, board interface, industrial interface, nut of grommet, plugs, caps, grommets, cabinet 9040 NL, interface operator, washers, screws, x-certificate impression, manufacturing plate blank, x-label-additif, x-label-ink, x-protector manufacturer plate, flange for power cord, main board support, flat cable motherboard, and IC-9040 head pelt-platform.
The aforementioned items imported undergo the following operations in the U.S.:
preparing the console
pressurization electro valve and air processing module assembly
main support/card assembly and connection of the motherboard/industrial interface cable to the connector on the industrial interface card
industrial interface plate assembly
electrical connections in the top section
print module assembly
electrical connections to the lower part
assembling the ink circuit
tests and loading of software
Six workstations are dedicated to perform 10 operations used in the U.S. assembly process to complete the finished article. The 10 operations consist of a picking preparation, configuration, integration, rinsing, ink adjustments, burn-in, control, draining, packaging, preparation and entry into finished product store. There is a specific sequence to the assembly for each step of the process. Checks and tests complete the process.
There are dedicated tools that are specifically designed and used in each process. The people who manufacture the IN 9040 have a technical education, and trained skills in order to follow the specific training provided for handling the tools and performing each step of the process.
The Explanatory Note (EN) (5) to heading 8422 provides guidance to the classification of labeling machines. It asserts a labeling machine includes those which print, cut and gum labels.
If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase “Made in the USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S.
In this case, the imported components are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported labeling machine and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin “United States”.
The applicable subheading for the IC 9040 inkjet printer will be 8422.30.9120, Harmonized Tariff Schedule of the United States (HTSUS), which provides for machinery for filling, closing, sealing or labeling bottles, cans, boxes, bags or other containers: Other: Labeling machines. The rate of duty will be free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
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 Denise Faingar at (646) 733-3010.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division