MAR-2 RR:TC:SM 560899 KSG
Marc C. Hebert, Esq.
Bracewell & Patterson, L.L.P.
2000 K Street, NW
Suite 500
Washington, D.C. 20006-1872
RE: NAFTA country of origin; Article 509; 19 CFR 134.43(e)
Dear Mr. Hebert:
This is in response to your letter of June 12, 1998,
requesting a binding ruling on behalf of Tex-Steel regarding
the country of origin of imported steel doors.
FACTS:
Tex-Steel is a U.S. corporation that manufactures steel
doors and frames, including fire doors. There are two
different processes used to manufacture the doors: either
the doors are assembled and finished in Mexico or the doors
are assembled in the U.S. and only finished in Mexico.
The engineering of the door is done in the U.S. Then,
raw steel, both of U.S. and foreign origin, undergoes a
series of procedures in the U.S., including steel blanking,
steel shearing, and steel forming, to produce door parts.
The door parts include: steel face sheets (the unfinished
door); internal reinforcements (steel ribs); hinge
reinforcements (plates); lock reinforcements; closure
reinforcements; removable glass stops; and conduits for
electrical wiring. You state that the classification of the
door parts is subheading 7326.90.8585, of the Harmonized
Tariff Schedule of the United States ("HTSUS").
The assembly of the door parts involves welding or
bolting the parts together to form a door. This is done
either in Mexico or the U.S. Removable glass stops are
applied by screws or bolts.
Lastly, the door undergoes finishing operations in
Mexico, which may involve tailoring its appearance to
customer specifications, grinding the steel to remove
blemishes from welding, application of putty filler to make
the surfaces smooth, steam cleaning the doors for
application of a prime coat of paint using a spray gun,
painting, and packaging for shipment in cardboard held in
place with steel or plastic bands.
Each door is marked on its edge using 3/8 inch
lettering with permanent black ink. You advise that the
doors are imported into the U.S. under subheading
7308.30.5050 of the HTSUS.
You ask if the marking "Assembled in Mexico of U.S.
Components" is acceptable for the doors that are assembled
and finished in Mexico. For the doors that are assembled in
the U.S. and only finished in Mexico, you ask if the doors
may be marked "Made in the U.S.A."
For the purposes of this ruling, we are assuming that
the tariff classification you have provided for the doors
and door parts are correct.
ISSUES:
What is the proper country of origin marking for
imported steel doors assembled and finished in Mexico?
What is the proper country of origin marking for
imported steel doors assembled in the U.S. and finished in
Mexico?
LAW AND ANALYSIS:
1. Country of origin of the steel doors
The first issue presented is the country of origin of
the steel doors which are assembled and finished in Mexico.
Since Mexico, a North American Free Trade Agreement
("NAFTA") country is involved, the NAFTA Marking Rules must
be applied to determine the country of origin. The NAFTA
Marking Rules are set forth in 19 CFR Part 102.
Section 102.11, Customs Regulations (19 CFR 102.11),
sets forth the required hierarchy for determining whether a
good is a good of a NAFTA country for the purposes of
country of origin marking and determining the rate of duty
and staging category applicable to an originating good as
set out in Annex 302.2. Paragraph (a) of this section
states that the country of origin of a good is the country
in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic
materials; or
(3) Each foreign material incorporated in that good
undergoes an applicable change in tariff
classification set out in section 102.20 and
satisfies any other applicable requirements of that section, and all other applicable requirements of these
rules are satisfied.
"Foreign material" is defined in 19 CFR 102.1(e) as "a
material whose country of origin as determined under these
rules is not the same country
as the country in which the good is produced." Sections
102.11(a)(1) and 102.11(a)(2) do not apply to the facts
presented in this case because the steel doors are assembled
in Mexico of U.S. material and therefore are neither wholly
obtained or produced, nor produced exclusively from domestic
materials. Since an analysis of sections 102.11(a)(1) and
102.11(a)(2) will not yield a country of origin
determination, we look to section 102.11(a)(3).
Section 102.11(a)(3) provides that the country of
origin is the country in which "each foreign material
incorporated in that good undergoes an applicable change in
tariff classification as set forth in 19 CFR 102.20...."
The steel door is classified at subheading 7308.30.50,
HTSUS. The applicable tariff shift rule found in section
102.20(n) provides as follows:
HTSUS Tariff Shift and/or other requirements
7308 .....A change to heading 7308 from any other
heading, except for changes resulting from
the following processes performed on angles,
shapes, or sections classified in heading
7216;
(a) drilling, punching, notching, cutting,
cambering, or sweeping, whether performed
individually or in combination;
(b) adding attachments or weldments for
composite construction;
(c) adding attachments for handling purposes;
(d) adding weldments, connectors or
attachments to H-sections or I-sections;
provided that the maximum dimension of the
weldments, connectors, or attachments is
not greater than the dimension between
the inner surfaces of the flanges of the H- sections or I-sections;
(e) painting, galvanizing, or otherwise
coating; or
(f) adding a simple base plate without
stiffening elements, individually or in
combination with drilling, punching, notching,
or cutting, to create an article suitable as a
column.
In the instant case, the foreign materials are the door
parts that are classified at subheading 7326.90.8585, HTSUS,
which provides for "Other articles of iron or steel; other;
other;." Since this is a heading other than heading 7308
and heading 7216 does not apply, the tariff shift rule is
satisfied. Pursuant to 19 CFR 102.11(a)(3), the country of
origin of the steel doors assembled and finished in Mexico
is Mexico.
The second issue presented is the country of origin of
the steel doors which are assembled in the U.S. and finished
in Mexico. In this instance, 19 CFR 102.11(a)(1) and
102.11(a)(2) do not apply because the steel doors are
neither wholly obtained or produced, nor produced
exclusively from domestic materials. Further 19 CFR
102.11(a)(3) does not apply because the parts are made into
unfinished doors in the U.S., which are classified at
subheading 7308.30.50, HTSUS, pursuant to General Rule of
Interpretation 2(a), HTSUS. Therefore, the above- quoted
tariff shift rule is not satisfied when the doors are
finished in Mexico.
Since 19 CFR 102.11(a)(3) does not apply, pursuant to
the hierarchial rules, we proceed to 19 CFR 102.11(b).
Section 102.11(b) provides:
Except for a good that is specifically described
in the Harmonized System as a set, or is
classified as a set pursuant to General Rule of
Interpretation 3, where the country of origin
cannot be determined under paragraph (a), (1)the
country of origin of the good is the country or
countries of origin of the single material that
imparts the essential character to the good....
Pursuant to 19 CFR 102.18(b)(iii), if only one material
does not undergo the applicable tariff shift, it will be
considered to represent the single material that imparts
the essential character to the good. Since the steel doors
sent to Mexico for finishing are the only material that does
not undergo a tariff shift, the doors impart the essential
character to the good in accordance with 19 CFR
102.18(b)(iii). Accordingly, pursuant to 19 CFR 102.11(b),
the country of origin of the steel doors assembled in the
U.S. and finished in Mexico is the U.S.
2. Country of origin marking of the steel doors
Section 134.43(e), Customs Regulations (19 CFR
134.43(e)), provides:
Where an article is produced as a result of an
assembly operation and the country of origin of
such article is determined under this chapter to
be the country in which the article was finally
assembled, such article may be marked, as
appropriate, in a manner such as the following:
(1) Assembled in (country of final assembly);
(2) Assembled in (country of final assembly) from
components of (name of country or countries of
origin of all components); or
(3) Made in, or product of (country of final
assembly).
You ask if the imported steel doors determined to be of
Mexican origin under 19 CFR Part 102 may be marked
"Assembled in Mexico of U.S. Components." Pursuant to 19
CFR 134.43(e)(2), this marking is acceptable provided that
all the components are of U.S. origin.
With regard to your request to mark the doors that are
of U.S. origin "Made in the U.S.A.," the language of 19
U.S.C. 1304 only applies to articles of foreign origin. The
Federal Trade Commission has jurisdiction over whether goods
may be marked "Made in the U.S.A." We suggest that you
contact that agency regarding this question.
HOLDING:
Pursuant to 19 CFR 102.11(a)(3), the country of origin
of the imported steel doors assembled and finished in Mexico
is Mexico. Pursuant to 19 CFR 134.43(e), the marking
"Assembled in Mexico of U.S. Components" is acceptable based
on the facts presented in this case.
The country of origin of the imported steel doors
assembled in the U.S. and finished in Mexico is the U.S.
These doors are not of foreign origin and, therefore, are
not required by 19 U.S.C. 1304 to be marked.
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