MAR-2-05 CO:R:C:V 731902
Michael P. Maxwell, Esq.
Stein Shostak Shostak & O'Hara
Suite 1240
3580 Wilshire Boulevard
Los Angeles, California 90010-2597
RE: Country of origin marking requirements applicable to
imported eyeglass frames
Dear Mr. Maxwell:
This is in reply to your letter of November 7, 1988,
concerning the application of country of origin marking
requirements to eyeglass frames from Italy manufactured from
Korean and Italian components.
FACTS:
In Korea, nickel-silver wire from Germany or Japan is
twisted and soldered to form unfinished components for eyeglass
frame fronts and temples. In their condition as exported from
Korea, the components are incapable of withstanding the corrosive
effects of perspiration.
In Italy, individual components are inspected and, when
necessary, excess solder is removed. The components are then
shaped according to style specifications. The shaping insures
that the finished frames will be capable of holding lenses.
Fronts and temples are partially assembled at this point so they
will fit onto a loom for cleaning. Cleaning involves application
of detergent, ultrasonic cleaning, an electrolyzing rinse and a
neutralizing rinse.
Cleaned, partially assembled frames are now ready for
plating. Two layers of nickel plating are applied. The plating
enhances the appearance of the frames, protects against bruising,
and also provides anti-corrosive protection. Next, one layer of
gold plating is applied to further enhance the aesthetic appeal
of the frames, add more corrosion protection and provide a base
for later painting.
Plated, partially assembled frames are cleaned again and
painted with either syringes or spray guns. A three stage baking
process fixes the paint. Painted, partially assembled frames
-2-
passing quality control inspection are then silk screened with a
company name, frame size and frame color. Assembly of the frames
is completed by attachment of temple ends and nose pieces of
Italian origin. Plastic demonstration lenses, also of Italian
origin, are inserted so ultimate purchasers of the frames will
see how they look with lenses. The frames are then folded around
a backing card and placed in a plastic bag.
You believe the frames are of Italian origin in that a
substantial transformation of all components takes place by
virtue of the processing and manufacture performed in that
country. A sample finished frame was submitted showing "FRAME
ITALY" in white letters on the inside right temple. The card in
the plastic bag also is imprinted "FRAME ITALY."
ISSUE:
Are eyeglass frame components subjected to the processing
and manufacturing in Italy described above substantially
transformed so as to make Italy the country of origin for
purposes of 19 U.S.C. 1304?
LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930, as amended (19
U.S.C. 1304), provides that every article of foreign origin (or
its container) 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 such a
manner as to indicate to the ultimate purchaser in the United
States the English name of the country of origin of the article.
In defining "country of origin", { 134.1(b), Customs
Regulations (19 CFR 134.1(b)), states in regard to articles
produced with components from two or more countries that,
"Further work or material added to an article in another country
must effect a substantial transformation in order to render such
other country the 'country of origin'..." Whether a substantial
transformation has occurred depends upon a comparison of the
article before the processing which is claimed to effect such
transformation and the article after the processing. It is a
well established principle of customs law that in order for a
substantial transformation to be found, an article having a new
name, character or use must emerge from the processing. See
United States v. Gibson-Thomsen Co. Inc., 27 C.C.P.A. 267, C.A.D.
98 (1940),
Customs has previously ruled on the marking consequences of
various levels of processing performed to eyeglass frame
components. In ruling 728504 (October 15, 1985), Customs found
that "the assembly of imported frames does not constitute a
substantial transformation of the item sufficient to make the
importer the ultimate purchaser and that in such case, country of
-3-
origin marking would be required on the imported fronts and
temples." Recognizing that each case must be decided on its own
facts, the ruling continued, "[w]here there is additional
processing performed (i.e. more that [sic] mere assembly of the
fronts and temples) Customs might find a substantial
transformation, depending on the particular circumstances
involved."
Customs ruling 710338 (July 17, 1979; published as C.S.D.
80-43), involved the importation of frame components from Italy
in a neutral and unfinished condition. The fronts and temples
were subjected to multi-step processing operations including
cleaning, trimming, machining, engraving, milling, attachment of
hinges, drilling of holes, heating and reshaping, and assembly.
After assembly, a multi-step dyeing process was used to color the
frame. Citing the fact that the fronts and temples could not be
used in their condition as imported except by a producer of
frames, and that the components must undergo substantial
adjustment to accommodate lenses and fit the human face, Customs
determined that a substantial transformation of the components
took place. The processor was the ultimate purchaser of the
components.
It is the opinion of this office that the processing
performed by your client is sufficiently similar to that
described in C.S.D. 80-43 to warrant the same determination,
i.e., that the processing and manufacturing constitute a
substantial transformation. The fronts and temples as imported
from Korea are not useable, and it is by virtue of the Italian
processing that the frames are made ready to accommodate lenses
and fit the human face. Additional support for this decision
comes from the anti-corrosive properties added by the plating in
Italy, an essential step in preparing the frames for their
ultimate use.
HOLDING:
Eyeglass frames produced in Italy as described above from
Korean and Italian components are products of Italy for country
of origin marking purposes. The marking on the sample frames
submitted, "FRAME ITALY", on the inside right temple in white
lettering on a contrasting background, satisfies the
requirements on 19 U.S.C. 1304.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch