MAR-2-05 CO:R:C:V 735409 RC
Mr. Larry D. Richardson
Fritz Companies, Inc.
P.O. Box 92641
Los Angeles, California 90301-2063
RE: Country of origin marking requirements for unrecorded micro
floppy discs; computer components; 19 CFR 134.45; HQ 735281.
Dear Mr. Richardson:
This is in response to your letter dated October 12, 1993,
requesting the country of origin marking requirements for micro
floppy discs imported from China. We regret the delay in
responding.
FACTS:
Your client, SV International, Inc., plans to import blank
micro floppy computer discs for customers who will install a
program onto the discs in the United States. You want to indicate
the country of origin marking on the cartons in lieu of the discs
themselves. Fifty floppy discs are stored in one inner carton box.
Ten inner cartons are stored in one outer carton. Instead of
marking each disc you want to mark both the inner and outer cartons
"Made in China."
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 its 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.
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. An imported article used in
manufacture which results in an article having a name, character
or use different from that of the constituent article will be
considered substantially transformed and that the manufacturer or
processor will be considered the ultimate purchaser of the
constituent materials. See U.S. v. Gibson-Thomsen Co., Inc., 27
C.C.P.A. 267 (C.A.D. 98) (1940). The imported article is excepted
from marking to the extent that the outermost container is properly
marked. See 19 CFR 134.35.
The facts in HQ 735281 (February 24, 1994) (copy enclosed) are
directly on point with the instant facts. Also, in HQ 732087
(February 7, 1990), Customs ruled that writing a program onto a
computer diskette substantially transformed the blank diskette.
Accordingly, we find that the party performing the programming
is considered the ultimate purchaser of the blank disc. Therefore,
the individual discs are excepted from country of origin marking
provided the discs are imported in properly marked sealed
containers. Customs officials at the port of entry must be
satisfied that the discs will remain in these sealed containers
until they reach the ultimate purchaser.
HOLDING:
Writing programs onto blank micro floppy discs substantially
transforms the discs. Pursuant to 19 CFR 134.35, the individual
discs are excepted from marking to the extent that their outermost
containers are properly marked to indicate the country of origin
of the discs until they reach the ultimate purchaser. Here, the
ultimate purchaser is the person who records the blank micro floppy
discs.
Sincerely,
John Durant, Director
Commercial Rulings Division
Enclosure