MAR-2 RR:CR:SM 561218 KSG
Daniel J. Gluck
Serko & Simon LLP
One World Trade Center
Suite 3371
New York, NY 10048
RE: Country of origin marking of drawer handles; substantial transformation; 19 CFR 134.41(b); 19 CFR 134.35(a)
Dear Mr. Gluck:
This is in response to your letter dated November 2, 1998, requesting a country of origin marking ruling on behalf of HEWI, Inc. regarding imported nylon drawer pulls (handles). A sample was enclosed. Supplemental information was provided in a letter dated January 25, 1999.
FACTS:
HEWI imports injection molded nylon drawer pulls, handles and knobs, primarily for sale to hardware distributors and industry related manufacturers, for incorporation into furniture and fixtures. A small percentage of goods are sold to firms for retail sale as imported.
This case involves both drawer pulls generally and in particular, a sample nylon drawer pull approximately 1 1/4 inches in diameter and
1 1/8 inches in height which is made in Germany. The sample pull has a highly polished and non-porous surface with a slight depression on one side. The sample pulls sold in bulk have their country of origin marked on the outer container. You state that the pulls sold at retail as imported are currently sold in bags with the country of origin marked on the bag.
Although the sample is marked in raised letters printed on the rim of the pull about 1/16 inch high, you propose to mark the pulls in lettering that is 1/8 inch high.
You state that the drawer pulls come with three screws which can be screwed through the drawer’s front panel into the back of the drawer pull. The drawer pull can accommodate one or more screws, depending upon how secure the user wants the drawer pull to be.
You ask that we confirm that those imported drawer pulls which are sold to firms who install them into furniture and fixtures prior to retail sale are substantially transformed and, therefore, excepted from marking. In regard to the few instances in which drawer pulls are sold by HEWI to firms for retail sale in their condition as imported, you indicate that printing the country of origin on each pull in raised letters will avoid the necessity of using individual bags to indicate the pulls’ country of origin. You ask if the proposed marking on the pulls themselves is acceptable for these instances.
ISSUES:
Whether the imported drawer pulls are substantially transformed when they are incorporated into furniture or fixtures prior to retail sale.
In regard to drawer pulls sold for retail sale in their condition as imported, whether the proposed raised letter printing on the pulls satisfies the country of origin marking requirements.
LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930 (19 U.S.C. 1304), as amended, 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 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.
Pulls incorporated into furniture or fixtures
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. 1304. The marking must survive normal distribution and store handling and the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. See 19 CFR 134.41(b). The ultimate purchaser is defined as generally the last person in the U.S. who will receive the article in the form in which it was imported . See 19 CFR 134.1(d). Pursuant to 19 CFR 134.35(a), articles other than goods of a NAFTA country used in the U.S. in manufacture which results in an article having a name, character, or use differing from that of the imported article will be within the principle of the decision in the case of U.S. v. Gibson-Thomsen Co., Inc., 27 CCPA 269 (1940). Under this principle, the manufacturer or processor in the U.S. who converts or combines the imported article will be considered the “ultimate purchaser” of the imported article and the article shall be excepted from marking. The outermost containers of the imported articles shall be marked in accord with this part.
Customs ruled in Headquarters Ruling Letter (“HRL”) 560013, dated December 3, 1996, (which was issued to you and concerned the same importer) that imported nylon handles sold to firms prior to retail sale who incorporate the handles into furniture are substantially transformed and do not require individual marking. In accordance with 19 CFR 134.35(a), it is sufficient to mark the outermost containers in which the distributors and manufacturers receive the handles. Consistent with HRL 560013, we find that the nylon handles involved in this case are substantially transformed when assembled by manufacturers to furniture and fixtures prior to retail sale. Therefore, they are excepted from individual marking in accord-once with 19 CFR 134.35(a) and the outermost container in which the manufacturers receive the handles must be marked with the country of origin of the handles.
Pulls sold at retail as imported
Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), provides that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. In this case, we believe that the country of origin marking that appears on the sample is difficult to read because of its small size (1/16 inch high). However, if the lettering is 1/8 inch high (as you state in your second submission), we find that the ultimate purchaser in the U.S. would be able to find the country of origin marking and read it without strain as required by 19 CFR 134.41(b). If the pulls which are sold individually at retail are to be repackaged in the U.S., the marking on the pulls must be clearly visible through the packaging (or the package must be marked) and the certification requirements of 19 CFR 134.26 must be followed.
HOLDING:
Imported nylon pulls are substantially transformed by U.S. firms when they are installed into furniture and fixtures prior to retail sale. Therefore, pursuant to 19 CFR 134.35(a), the pulls are excepted from individual marking.
Regarding the imported pulls which are sold to firms for retail sale as imported, we find that the proposed country of origin marking on the pulls (in 1/8 inch high raised lettering) satisfies 19 U.S.C. 1304 and 19 CFR 134.41(b). If the pulls are to be repackaged in the U.S., the marking on the articles must remain clearly visible through the package and the certification requirements of 19 CFR 134.26 must be followed.
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. 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,
John Durant, Director
Commercial Rulings Division