MAR-2-05 CO:R:C:V 732330 KG
Siegel, Mandell & Davidson, P.C.
655 Fifteenth Street, N.W.
Suite 300
Washington, D.C. 20005
RE: Country of origin marking requirements for granite and marble
products
Dear Sirs:
This is in response to your letter of April 10, 1989,
requesting a ruling regarding the country of origin marking
requirements for granite and marble products.
FACTS:
The merchandise to be imported is granite and/or marble
tiles, slabs, and memorial monuments ("markers") produced in
Portugal from granite and marble blocks quarried in the People's
Republic of China ("PRC").
The granite and marble blocks quarried in the PRC will have
a size of between 1 and 2 cubic meters, with typical dimensions
of .8m x 1.2m x 1m. The blocks are extracted with hammers,
chisels and winches. It takes about 16 hours to extract each
block. Once the blocks are extracted, they are sent to Portugal
to be used to make tiles, slabs or markers. No processing will
be performed on the bolcks prior to their shipment to Portugal.
TILES
The tiles will measure 12 x 12 x 3/8 inches and will be
intended for use as decoration on exterior and interior building
walls and floors. The first step in producing the tiles involves
cutting each block into slabs by means of one cut with a diamond-
tipped wire or circular gang saw having approximately 40 separate
cutting edges; thus, approximately 40 slabs are cut from each
block simultaneously. The second step involves cutting each
rough slab lengthwise into multiple 12 inch wide strips by means
of a diamond-tipped radial blade. The third step involves
polishing one face of each strip by means of coarser-to-finer
diamond-tipped pads with application of water and resin. The
fourth step involves cutting across each strip at 12-inch
intervals with a diamond-tipped radial blade to result in the
final dimensions of the tiles. Finally, in most cases the four
top edges of the tiles are bevelled. It takes approximately 10
hours to cut each granite block into slabs and about 12 minutes
per tile to finish each tile. On a per block basis, it takes
approximately 80 hours to process the granite tiles and 60 hours
to process the marble tiles.
SLABS
The granite and marble slabs will have a thickness of
between less than 1 inch and 2 inches. The length and width of
each slab will vary. The slabs are intended for use as counter
tops and as interior facing on bathroom walls and around
fireplaces. The first step involves cutting each block into
slabs by means of one cut with a diamond-tipped wire or circular
gang saw. The time required for this process is about 10 hours.
The second step involves use of a diamond-tipped radial blade to
cut each rough slab along each of its four edges so as to create
an even shape. In some cases the slabs will be sold in this form
and in other cases the outside surface will be polished and
bevelled. The total time required to convert one block into
finished slabs is about the same as for the tiles.
MARKERS
The markers will be produced from granite only and will
consist of flat slabs as well as bases, middle sections and
pedestals. The typical product will measure 1 foot x 2 feet x 4
inches. The first step involves cutting each block into 4-inch
thick slabs. The resulting slabs are then cut down further to
the required size by means of a diamond-tipped radial blade. A
third step applied to most markers involves polishing one face in
the same manner as the tiles.
ISSUE:
What is the country of origin of slabs, tiles and markers
produced in Portugal from blocks of granite or marble quarried in
the PRC.
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. Section 134.1(b), Customs Regulations (19 CFR
134.1(b)), defines the 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 this part."
A substantial transformation occurs when articles lose their
identity and become new articles having a new name, character or
use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at
270 (1940), National Juice Products Association v. United
States, 10 CIT____ , 628 F. Supp. 978 (Ct. Int'l Trade 1986),
Koru North America v. United States, 12 CIT ____, 701 F. Supp.
229 (Ct. Int'l Trade 1988).
Customs considered whether raw hardwood plywood processed
into wall paneling was substantially transformed in ruling letter
HQ 728364 (August 12, 1985). Customs concluded that the wood was
substantially transformed after the plywood was filled, grooved,
sanded and numerous layers of liquid coating were applied. The
decorative finish was considered the most important feature of
the finished product which substantiallly changed the fundamental
nature of the imported plywood. "The manufacturing process
changes the imported product from a raw material with several
uses to factory finished wall paneling which is used exclusively
for decorative purposes."
The facts in this case present even more evidence that
there has been a substantial transformation than HQ 728364. The
amount of finishing and processing done in Portugal is more time-
intensive and complex than the factory processing done in the
plywood case. A block of granite or marble is raw material that
could have many potential uses after being processed. On the
other hand, tiles, slabs and markers are finished goods that have
very distinct and particular uses for which they are designed.
For instance, a block of granite or marble could not be
substituted for tiles in constructing a bathroom, could not be
substituted for a slab in designing a marble table, or
substituted for a marker in a cemetary.
A block of granite or marble processed into a tile, slab or
marker undergoes a change in name. Tiles, slabs and markers
also have a different character than blocks of granite or marble;
each article has a different size dimension, different finishing
and a different appearance. The process of making tiles, slabs
and markers from granite and marble blocks takes a good deal of
time and skill. You advanced other arguments to support your
contention that substantial transformation takes place in
Portugal which we have not addressed because the facts and
arguments discussed present a convincing argument in favor of
substantial transformation occurring in Portugal.
The extensive manufacturing process performed in Portugal
substantially transforms the marble and granite blocks into
tiles, slabs and markers. Therefore, for the purposes of 19
U.S.C. 1304, the country of origin of the imported markers,
slabs and tiles is Portugal. This ruling is rendered in regard
to that statute only.
HOLDING:
Blocks of granite and marble quarried in the PRC and
processed into tiles, slabs and markers in Portugal are
considered to be from Portugal for the purposes of 19 U.S.C.
1304.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch