MAR-2-05 CO:R:C:V: 731307 EAB

Mr. David P. Schulingkamp
M.G. Maher & Company, Inc.
442 Canal Street
New Orleans, LA 70130

Re: Country of origin marking requirements for imported metal castings

Dear Mr. Schulingkamp:

This is in response to your letter of March 7, 1988, re- questing a ruling on country of origin marking requirements for imported metal castings. We regret the delay in responding.

FACTS:

Metal castings are imported by your client, who uses them solely as component parts in the assembly of butterfly valves, gate valves and fire hydrants. You have provided a photograph of a casting and a photocopy of several valves and fire hydrants in- dicating the point of attachment of one or more castings to each unit. You state that the castings are never used as saleable parts, and that the attachment of the castings to the various valves and fire hydrants substantially transforms the castings.

ISSUE:

Whether imported metal castings used as component parts of gate valves, butterfly valves and fire hydrants are substantially transformed such that the castings are excepted from country of origin marking.

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides, subject to specified exceptions, that every ar- ticle 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 container) will per- mit, 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. The primary purpose of the country of origin marking statute is to "mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy the product, if such marking should influence his will." United States v. Friedlaender & Co., 27 CCPA 297 (1940), as quoted with approval in National Juice Products Association v. United States, 10 CIT 48, 628 F. Supp. 978 (1986).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of and exceptions to 19 U.S.C. 1304. Pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d), an exception from individual marking is applicable where the marking of a container of such article will reasonably indicate the country of origin of such article to the ultimate purchaser. The "ultimate purchaser" is defined in 19 CFR 134.1(d) as generally the last person in the U.S. who will receive the article in the form in which it was imported. It is specifically provided in 19 CFR 134.35 that a manufacturer may be the ultimate purchaser if he converts or combines an imported article into an article with a new name, character or use. In such case, the article shall be excepted from marking under 19 U.S.C. 1304(a)(3)(D), and the outermost containers of the imported articles shall be marked in accordance with Part 134.

From the photograph and photocopy that you submitted, the imported article clearly appears to be a casting known as a follower ring. Customs has previously ruled that as the result of a manufacturing process consisting of the combination of im- ported follower rings with other U.S. components, the follower rings lose their separate identity and become integral components of a new and different article of commerce. The manufacturer who assembled the follower rings into flanged coupling adaptors was held to be the ultimate purchaser, and the imported follower rings were excepted from marking. Only the outermost containers of the follower rings had to be marked, see Customs Ruling HQ 080135, dated June 29, 1987.

In the described circumstances, the manufacturing process to which your client subjects the imported follower rings results in new and different articles of commerce in which the follower rings lose their separate identities and become integral compo- nents of gate valves, butterfly valves and fire hydrants; there- fore, pursuant to 19 CFR 134.35, your client is the ultimate purchaser of the imported follower rings.

HOLDING:

Imported castings known as follower rings which are to be used with other U.S. components in the manufacture of gate valves, butterfly valves and fire hydrants are excepted from individual marking pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.35, provided: (1) the containers in which the castings are imported are properly marked to indicate the country of origin of the castings; (2) Customs officers at the port of entry are satisfied that these castings will reach the valve or fire hydrant manufacturer in the original marked containers in which the castings are imported; and, (3) the castings will only be used in the manufacture of gate valves, butterfly valves and fire hydrants, as described above and not otherwise gold. Statements to this effect must be submitted for each entry for which this exception applies.

Sincerely,

John Durant, Director
Commercial Rulings Division