MAR-2-05 CO:R:C:V 733835 NL
Judith K. Matta
William F. Joffroy, Inc.
P.O. Box 21041
Phoenix, AZ 85036
RE: Country of Origin Marking - Knocked-down Freight Containers;
19 CFR 134.32(g); 19 CFR 134.34.
Dear Ms. Matta:
This is in response to your letters of April 11 and May 30,
1990, addressed to the Regional Commissioner of Customs, New York
Region,in which you request rulings as to the classification and
and country of origin marking applicable to the imported
components of an unassembled metal container. These requests
have been referred to Customs Headquarters. The determination as
to the classification of the imported components was issued on
October 4, 1990, as HQ 087497. The present ruling determines the
applicable country of origin marking requirements and exceptions.
FACTS:
As sold by the importer to ultimate purchasers, the finished
article is a container system called the "Unicon" which is
capable of being disassembled, or knocked-down, for more
economical return to the shipper and subsequent reuse. The
imported components, which are the subject of this ruling,
consist of unplated steel frame, lid, and gate assemblies, which
originate in Czechoslovakia, and channels and cleats originating
in Australia. After importation these parts are zinc plated, and
then assembled into the complete "Unicon" container article by
the addition of six 4' x 8' plywood panels which you state will
be of U.S. origin. This assembly includes bolting, screwing, and
notching and routing the plywood panels. Thereafter, the
assembled panels are affixed to wooden pallets using the cleats
and channels. The completed Unicon exceeds 300 liters in
capacity, and may be used to ship dry solid goods or, with the
insertion of a plastic bag, to ship liquids or dry granular
goods.
The Unicon container is shipped in knocked-down condition on
pallets to its purchasers, who can prepare them for use with a
simple assembly.
-2-
In HQ 087497 we determined that the imported components
were to be classified in subheading 7326.90.9090, Harmonized
Tariff Schedule of the United States (HTSUS), which provides for
other articles of iron or steel.
It is indicated that the zinc plating process in the U.S.
will obliterate any country of origin markings on the steel
components, and you request that those articles be excepted from
country of origin marking pursuant to 19 CFR 134.32(g), which
provides an exception from country of origin marking for articles
to be processed in the U.S. by the importer in such a manner that
country of origin marking would be obliterated, destroyed, or
permanently concealed. You have stated that the importer would
be willing to provide country of origin marking as to the steel
components by means of stenciling on the plywood panels, where
additional branding and assembly information will also appear.
ISSUE:
May the imported steel components be 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 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.
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. Among the exceptions from country of origin marking
is 19 CFR 134.32(g), which excepts "articles to be processed in
the U.S. by the importer or for his account otherwise than for
the purpose of concealing the origin of such articles and in such
a manner that any mark ...would necessarily be obliterated,
destroyed, or permanently concealed." On the basis of the facts
presented, we agree that the subject imported steel components
(frame and gate assemblies, lids, hinge assemblies, lids, cleats,
and channels) are eligible to be excepted from country of origin
marking, since the zinc plating after importation would
obliterate any country of origin marking appearing on the steel
components at the time of importation.
It is our opinion, however, that the country of origin of
the articles must be disclosed to their ultimate purchaser, the
purchaser of the "Unicon" containers. Here, it is our opinion
that the inclusion of the imported unplated metal parts in the
Unicon does not substantially transform them into articles of
-3-
another country, and they retain their status as articles
originating in Czechoslovakia and Australia. Accordingly, even
though the imported articles are excepted from marking at the
time of importation under 19 CFR 134.32(g), the processed
articles are required to be marked. See, HQ 733676 (December 6,
1990)(hot finished steel bars imported into the U.S. for cold
finishing were not substantially transformed, and were required
to be marked with their country of origin after processing in the
U.S. even though excepted from marking at the time of importation
pursuant to 19 CFR 134.32(g)). The marking of their origin can
be accomplished, as you suggest, by marking the articles'
countries of origin on the plywood panels by means of stenciling.
Such marking might read, "Frame Product of Czechoslovakia,
Channels and Cleats Products of Australia", or words to similar
effect.
An importer who proposes to mark articles after importation
may, pursuant to 19 CFR 134.34, request that the the district
director approve any marking done after importation, giving the
district director such samples and certifications as the latter
may find necessary to assure that the marking will be in
accordance with the requirements of 19 U.S.C. 1304 and Part 134.
The procedures set forth in 19 CFR 134.34 are appropriate in this
instance.
HOLDING:
The articles of steel which serve as components of the
knocked-down container are not required to be marked with their
country of origin at the time of their importation, as any
marking would be obliterated by U.S. processing. 19 CFR
134.32(g). However, the articles must be marked at the time they
reach the ultimate purchaser in the U.S. by means of stenciling
on the panels of the containers or another method of marking
acceptable to Customs. Such marking should be performed under
the supervision of the district director as set forth in 19 CFR
134.34.
Sincerely,
John Durant, Director
Commercial Rulings Division