MAR-2-05 CO:R:C:V 731676 jd
Mr. Gary Hodnett
Import Manager
The Lane Company, Inc.
Box 151
Altavista, Virginia 24517-0151
RE: Country of origin marking requirements applicable to
imported unfinished wood table legs and rails
Dear Mr. Hodnett:
This is in reply to your letters of March 24 and June 9,
1988, to the Customs office in New York, concerning the
application of country of origin marking requirements to imported
unfinished wood table legs and rails. Your first letter was
prompted by a marking notice received at the port of Norfolk, but
you state in your second submission that the marking problem was
resolved. Both of your letters and the attachments were
forwarded to this office for reply. The following is the
prospective ruling you requested to avoid similar problems with
future importations. We regret the delay.
FACTS:
Your company imports carved mahogany table legs and rails
from the Philippines. The pieces as imported are unfinished and
unassembled. You assemble the pieces into a table base, add a
domestically produced wood veneered top and finish the article at
your U.S. location. A hangtag is attached to each table which
states that components from the Philippines were used in its
manufacture.
ISSUE:
Are unfinished wood table legs and rails substantially
transformed by their assembly into a table base, addition of a
domestically produced table top and finishing, so as to make the
importer/processor the ultimate purchaser of the legs and rails
for country of origin marking purposes?
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
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nature of the article (or container) will permit, in such a
manner as to indicate to an ultimate purchaser in the United
States the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the
requirements and exceptions of 19 U.S.C. 1304.
Section 134.35, Customs Regulations (19 CFR 134.35),
implementing the principle of U.S. v. Gibson-Thomsen Co., Inc.,
27 C.C.P.A. 267 (C.A.D. 98), provides that an article used in the
U.S. in manufacture which results in an article having a name,
character, or use differing from that of the imported article
will be considered substantially transformed, and therefore the
manufacturer or processor in the U.S. who converts or combines
the imported article into the different article will be
considered the ultimate purchaser of the imported article within
the contemplation of 19 U.S.C. 1304(a). Accordingly, the article
shall be excepted from marking. However, in accordance with 19
U.S.C. 1304(b) and { 134.22, Customs Regulations (19 CFR 134.22),
the outermost container of the imported article shall be marked
to indicate the country of origin of the article.
In Carlson Furniture Industries, James G. Wiley & Co. v.
United States, C.D. 4126, the U.S. Customs Court decided that the
ultimate purchaser of certain wood furniture parts, both finished
and unfinished, was the company that assembled the parts into
chairs. In T.D. 71-77 (March 8, 1971), Customs agreed with the
Carlson court that "the company which assembles imported wood
chair parts into chairs is the 'ultimate purchaser' of such
parts", but limited the decision to the case of parts imported in
an unfinished condition. Headquarters ruling 709561 (January 16,
1979), applied the decision of T.D. 71-77 and determined that
imported unfinished parts of a "Captain's bed" were substantially
transformed by surface finishing, and assembly with domestic
components so as to make the importer the ultimate purchaser of
the parts for country of origin marking purposes.
It is the opinion of this office that your company is the
ultimate purchaser of the imported unfinished table legs and
rails. You substantially transform the parts by assembly with
domestic components into a finished table and the surface
finishing of the completed table.
HOLDING:
In consideration of the facts described above, the
importer/processor of unfinished wood table legs and rails is the
ultimate purchaser of the articles for country of origin marking
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purposes. Accordingly, the pieces are excepted from individual
country of origin marking. However, the outermost container of
the legs and rails must be marked to indicate their country of
origin.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch
cc: Asst. Area Director, NIS
your file 830734