MAR-2-05 RR:TC:SM 559890 MLR
Mr. H.J. Lee
Lee Company
137 Eucalyptus Drive
El Segundo, CA 90245
RE: Country of origin marking of motorcycle helmet; fiber
lining; substantial transformation
Dear Mr. Lee:
This is in reference to your letter of March 18, 1996,
to U.S. Customs in New York, requesting a ruling regarding
the country of origin marking requirements of certain
motorcycle helmets. On June 27, 1996, additional
information was submitted to the Office of Regulations and
Rulings.
FACTS:
It is stated that fiber lining (40 percent nylon and 60
percent polyester fabric) manufactured in either North Korea
or Vietnam will be bonded inside a South Korean-origin
fiberglass reinforced plastic helmet in South Korea. The
completed helmet will be exported to the U.S.
ISSUE:
What is the country of origin for marking purposes of
the imported motorcycle helmet?
LAW AND ANALYSIS:
The marking statute, section 304, 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. Inc., 27 CCPA 297, 302, C.A.D. 104
(1940).
Part 134, Customs Regulations (19 CFR Part 134),
implements the country of origin marking requirements and
the exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs
Regulations {19 CFR 134.1(b)}, defines "country of origin"
as the country of manufacture, production or growth of any
article of foreign origin entering the U.S. 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" within the meaning of the
marking laws and regulations.
In determining whether the combining of parts or
materials constitutes a substantial transformation, in
Belcrest Linens v. United States, 573 F. Supp. 1149 (CIT
1983), aff'd, 741 F.2d 1368 (Fed. Cir. 1984), the court,
considering certain operations performed to fabric, stated
that the issue is the extent of operations performed and
whether the parts lose their identity and become an integral
part of the new article. On the other hand, if the
manufacturing or combining process is merely a minor one
which leaves the identity of the imported article intact, a
substantial transformation has not occurred and an
appropriate marking must appear on the imported article so
that the consumer can know the country of origin. Uniroyal,
Inc. v. United States, 542 F. Supp. 1026, 1029 (CIT 1982),
aff'd, 702 F.2d 1022 (Fed. Cir. 1983).
In Headquarters Ruling Letter (HRL) 732388 dated August
1, 1990, Customs considered Taiwanese foam cut into a
particular shape, which was assembled with U.S. made-snaps
and U.S. made-headbands in the U.S. It was determined that
once attached to the headband, the piece of foam became a
finished visor that had a different character and use than
the imported foam piece. Accordingly, it was held that the
imported article was substantially transformed by the
importer and therefore was excepted from individual country
of origin marking requirements.
In this case, the imported article is clearly a helmet
and not fiber lining. The fiber lining from either North
Korea or Vietnam also loses its identity when it is bonded
into a South Korean helmet. Consequently, it is our opinion
that the country of origin of the imported helmet will be
South Korea and the imported helmets must be clearly marked
to indicate to the ultimate purchaser their country of
origin.
HOLDING:
On the basis of the information submitted, we find that
the Vietnamese or North Korean fiber lining is substantially
transformed when it is bonded into a South Korean helmet
shell in South Korea. Therefore, the imported helmets must
be marked so as to clearly indicate to the ultimate
purchaser in the U.S., that the country of origin of the
helmets is "South Korea."
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
Tariff Classification Appeals
Division