MAR 2-05 CO:R:C:V 734538 LR
Matthew T. McGrath, Esq.
Barnes, Richardson & Colburn
1819 H Street, N.W.
Washington, D.C. 20006
RE: Country of origin marking of parts of weighing machines;
scales; printers; repair and replacement parts; J- List;
19 CFR 134.33; parts for machines imported from same country
as parts
Dear Mr. McGrath:
This is in response to your letters dated March 11 and
September 10, 1992, on behalf of your client, Mitsui & Co.
(U.S.A.), Inc. (Mitsui), requesting a ruling on the country of
origin marking of imported repair and replacement parts which it
imports for certain scales and printers.
FACTS:
Mitsui imports computerized scales and printers used in food
markets and similar retail outlets. The scales and printers are
manufactured in Japan by Kubota Co. Mitsui will also import
replacement and repair parts specifically designed for these
machines from the same manufacturer in Japan. The scales and
printers are physically marked pursuant to 19 U.S.C. 1304 to
clearly indicate to the ultimate purchaser the country of origin
of the product. After importation, Mitsui delivers all merchandise
to its customer, Mettler-Toledo, Inc. That customer provides the
complete unit to the end-user -- generally a retail outlet -- and
also provides repair service, including parts, either through its
own service network or through an independent authorized service
distributor. At the time of importation, the origin of the
replacement parts will be clearly marked on the boxes in which they
are packed for delivery to Mettler-Toledo. They are removed from
these boxes after being received by Mettler-Toledo so that they may
be inventoried and stored for easy access, prior to being selected
by repair personnel for installation in the scales or printers.
These replacement components are not separately packaged or boxed
at the time the repair person selects the parts and places it into
the scale or printer.
Mitsui submits that the components themselves, as described
above, should be exempt from the country of origin marking
requirements pursuant to section 134.32, Customs Regulations
(19 CFR 134.32).
ISSUE:
Whether repair and replacement parts manufactured in Japan by
Kubota Co. specifically for scales and printers also manufactured
in Japan by Kubota Co. are excepted from individual 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.
Section 134.33, Customs Regulations (19 CFR 134.33), sets
forth certain classes of articles, known collectively as the J-
list, which are excepted from individual country of origin marking
pursuant to 19 U.S.C. 1304(a)(3)(J). However, in the case of any
article on the J-list which is imported in a container, the
outermost container in which the article ordinarily reaches the
ultimate purchaser is required to be marked to indicate the origin
of its contents.
One class of articles on the J-list is "parts for machines
imported from the same country as parts." This item has been
interpreted to cover replacement parts which are manufactured in
the same country as the original machines which is exported to the
U.S. As construed by Customs in T.D. 75-85 (March 12, 1975), the
following principles are applicable to this exception:
(1) The word machine is used in a general sense and also
applies to such things as vehicles;
(2) The exception applies to replacement parts for machines
which may be manufactured in more than one country, provided that
Customs officers are satisfied that the machines exported to the
U.S. are made only in one country;
(3) The exception applies to replacements parts made ad
engineered for use on or in the particular machine involved, and
also to parts made to standard or stock designs which are used in
producing the machine; and
(4) The exception is applicable only to replacement parts
manufactured in the same country as the machine which is exported
to the U.S.
The underlying rationale for this particular exception is that
if the ultimate purchaser buys a specific machine which is properly
marked as to its country of origin then there is no need to mark
a replacement part for that machine if it is manufactured in the
same country as the original machine. The presumption is that the
ultimate purchaser will assume that unless otherwise marked, the
replacement part was manufactured in the same country as the
machine itself. Headquarters Ruling Letter (HRL) 732544, July 21,
1989.
Examples of the application of this J-list exception include
HRL's 704379, March 26, 1975, (replacement parts for automobiles);
707773 (July 1, 1977) (replacement parts for saxophones); 731864
(April 7, 1989) (service parts for agricultural implements); and
732544, July 21, 1989 (replacement parts for hand-held power
tools).
In this case, the replacement and repair parts manufactured
by Kubota Co. in Japan for use with scales and printers
manufactured by Kubota Co. in Japan qualify for the J-list
exception. The scales and printers are "machines" as that word
is used in 19 CFR 134.33; the machines and the replacement and
repair parts are produced in the same country; and the replacement
and repair parts are designed for the particular machines involved.
However, the outermost container which ordinarily reaches the
ultimate purchaser must be marked with the country of origin of the
replacement and repair parts. As set forth in 19 CFR 134.1, the
ultimate purchaser is the last person to receive the imported in
its imported form. In this case, we consider the food outlet that
uses the imported scales and printers to be the ultimate purchaser
of both the machines and the replacement and repair parts. As
such, the outermost container which ordinarily reaches the food
outlet must be marked. If, as stated above, the replacement and
repair parts are delivered to the ultimate purchaser without a
container, no marking would be required. However, if the
replacement and repair parts are repacked prior to receipt by the
ultimate purchaser the certification requirements set forth in 19
CFR 134.25 would apply and marking of the outermost containers
would be necessary.
In view of the determination that the repair and replacement
parts are excepted from marking pursuant to 19 CFR 134.33, we will
not address the applicability of the other exceptions specified in
19 CFR 134.32.
HOLDING:
Parts manufactured in Japan to be used as replacement and
repair parts for certain scales and printers also manufactured in
Japan are excepted from individual marking pursuant to 19 U.S.C.
1304(a)(3)(J) and 19 CFR 134.33 as "parts for machines imported
from same country as parts." The outermost container in which a
part ordinarily reaches the ultimate purchaser is required to be
marked to indicate the origin of its contents. If these parts are
repacked in new containers after leaving Customs custody, the
certification requirements of 19 CFR 134.25 apply.
Sincerely,
John Durant, Director