MAR-2-05 CO:R:C:V KG
Lucy Baker
Import Operations
Expeditors International of Washington Inc.
19119 16th Avenue South
P.O. Box 69620
Seattle, Washington 98168
RE: Country of origin marking of foam visors
Dear Ms Baker:
This is in response to your letter of May 9, 1989,
requesting a country of origin ruling on imported foam visors.
FACTS:
Your client ("the importer") imports foam visors from Taiwan
which are assembled with U.S. made-snaps and U.S. made-headbands
in the U.S. The visors each cost $.15; the snaps cost $.15; the
headbands cost $.38; the labor to assemble the finished product
costs $.10 and the total cost of the finished product is $.78.
The importer submitted a sample visor, snaps, and headband along
with a picture of the finished product which is advertised as a
"sportcooler". You informed a member of my staff that the visors
are imported into the U.S. in sealed boxes marked with the
country of origin. The visors arrive at the importer's facility
in these sealed marked boxes.
ISSUE:
Whether the imported foam visors must be individually marked
with their country of origin.
LAW AND ANALYSIS:
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 U.S. 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 U.S. the
English name of the country of origin of the article.
Congressional intent in enacting 19 U.S.C. 1304 was "that the
ultimate purchaser should be able to know by an inspection of the
marking on the imported goods the country of which the goods is
the product. The evident purpose 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 them, if
such marking should influence his will." United States v.
Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940).
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. Pursuant to 19 U.S.C. 1304(a)(3)(D) and section
134.32(d), Customs Regulations (19 CFR 134.32(d)), Customs
excepts from individual marking requirements imported articles
for which the marking of the containers will reasonably indicate
the origin of the articles.
The exception set forth in 19 U.S.C. 1304(a)(3)(D) and 19
CFR 134.32(d) applies in cases where the article is imported in a
properly marked container and Customs officials at the port of
entry are satisfied that the ultimate purchaser will receive it
in its original unopened marked container. See HQ 731768
(December 8, 1988). In this case, the imported article is not
sold on an individual basis and the importer receives the foam
visors in a sealed box. The pivotal question then is whether or
not the importer is the ultimate purchaser of the visors.
Section 134.1(d), Customs Regulations (19 CFR 134.1(d)), defines
the ultimate purchaser as generally the last person in the U.S.
who will receive the article in the form in which it is imported.
If the imported article will be used in manufacture, the
manufacturer may be the ultimate purchaser if he subjects the
imported article to a process which results in a substantial
transformation of the article, even though the process may not
result in a new or different article. If the manufacturing
process is merely a minor one which leaves the identity of the
imported article intact, the consumer or user of the article, who
obtains the article after the processing, will be regarded as the
ultimate purchaser. Section 134.35, Customs Regulations (19 CFR
134.35), states that an imported article is substantially
transformed if the article used in the U.S. in manufacture
results in an article having a name, character, or use differing
from that of the imported article.
The importer submitted no information about the process
involved in assembling the visors with snaps and headbands. The
cost of the U.S. labor involved in this assembly is $.10 per
visor. The cost of the U.S.-made sweatband and snaps combined
with the visor are $.53 per finished product out of a total cost
of $.78. As pointed out by the importer, the imported article
represents less than 20% of the value of the finished product.
The foam visor in its imported condition is not really a visor
but merely a piece of foam cut into a particular shape which is
useable as a visor when attached to some type of headgear such as
a sweatband or a hat. Once attached to the headband, the piece
of foam becomes a finished visor that has a different character
and use than the imported foam piece.
After careful review of this matter and examination of the
sample, we are of the opinion that the imported article is
substantially transformed by the importer and therefore is
excepted from individual country of origin marking requirements.
However, the outermost container of the imported article must be
marked with the country of origin. This ruling is only for the
purposes of 19 U.S.C. 1304.
HOLDING:
The imported article is substantially transformed by the
importer and therefore, the importer is the ultimate purchaser of
the imported goods. The imported article is excepted from
individual country of origin marking requirements and only the
outermost container in which the goods are imported must be
marked with the country of origin. This determination is for
the purposes of 19 U.S.C. 1304 only.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch