MAR-2 OT:RR:NC:N1:113
Mr. Andrew M. Lemke
Romac Industries Inc.
21919 20th Avenue SE
Suite 100
Bothell, WA 98021
RE: COUNTRY OF ORIGIN AND COUNTRY OF ORIGIN MARKING OF IMPORTED
GLANDS
Dear Mr. Lemke:
This is in response to your letter dated August 4, 2010, requesting a ruling on the country of origin and country of origin marking of imported glands. You are requesting a ruling on whether imported glands are required to be individually marked with the country of origin if the glands are later to be processed in the United States by a United States manufacturer. A marked sample was not submitted with your letter for review.
The subject imported articles are identified as glands. You described the glands in their condition as imported as raw castings. The glands are cast from ductile iron and are used as a subcomponent of a RomaGrip. You stated in your letter that “The RomaGrip product is used to complete the joint between a pipe and fitting. When installed, it creates a seal and retains the pipe from pulling out of a fitting.”
You indicated that there are no subcomponents added to the gland prior to import. The sourcing of subcomponents, machining of the gland to accept the subcomponents and the assembly required to produce a functioning product will be accomplished within a Romac owned and operated facility located in the United States. The glands will have minor finishing accomplished to remove surface imperfections prior to import.
You provided a detailed description of the manufacturing processes performed on the imported glands in China. You state that “To create the gland, pig iron and scrap metal are combined with magnesium and other additives within a furnace to create molten ductile iron…used to fill individual sand molds…After the mold has been filled with the molten material it is allowed to cool and solidify. At this point the sand mold is broken away and the gland casting is revealed…
finishing is accomplished using a grinder. The finishing process removes surface defects. This is the condition of the casting at time of import.” Therefore, the country of origin of the imported glands is China.
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 (or its container) imported into the United States 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 United States 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 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the United States must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used to manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in substantial transformation of the article. The case of United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing 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. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See 19 C.F.R. 134.35.
In this case, the imported glands are substantially transformed as a result of the United States processing, and therefore the United States manufacturer is the ultimate purchaser of the imported glands and under 19 C.F.R. 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin China.
You indicated in your letter that you believe the imported glands are appropriately classified in subheading 7307.19.30, Harmonized Tariff Schedule of the United States (HTSUS), which provides for tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: cast fittings: other: ductile fittings. However, the National Import Specialist that handles heading 7307, HTSUS, has indicated that the glands do not function as fittings; they do not connect the pipes. The subject glands are used to create a seal and restrain pipe from pulling out of the fittings. Therefore, the subject glands are not classifiable in subheading 7307.19.30, HTSUS. Based on the information available to our office, the imported glands have not been advanced beyond the condition of a basic cast iron article and are classified under heading 7325, HTSUS, which provides for other cast articles of iron or steel.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Ann Taub at (646) 733-3018.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division