MAR-2 OT:RR:NC:N1:102
Mr. Robert T. Givens
Givens & Johnston, PLLC
950 Echo Lane, Suite 360
Houston, Texas 77024-2788
RE: THE COUNTRY OF ORIGIN MARKING OF VALVE COMPONENTS TO BE ASSEMBLED IN THE UNITED STATES
Dear Mr. Givens:
This is in response to your letter dated September 30, 2011 requesting a ruling on behalf of your client, PBV-USA, Inc., hereinafter “PBV”. The issue raised is whether country of origin marking is required on imported parts for use in the manufacture of trunnion ball valves. A picture of the valves along with a detailed description of the valves, the components and the assembly and manufacturing process to which the parts are subjected were included with your submission. A marked sample was not submitted with your letter for review.
In your submission, you indicate that PBV plans to import various steel valve components from China and perhaps other foreign countries that will be assembled together with finished valve components of U.S. origin into complete ball valves. The assembly process will be performed by PBV in its U.S. manufacturing facility. These valves are used by the oil and gas industry in both line and process applications to control the flow of oil, gas and other liquids.
The imported components will include upper and lower valve bodies, stems, trunnions, a bearing, a spring and anti-static pin, seats, seals, etc. You state in your letter that these components will not be resold by PBV except as parts of completed valves. You request that the foreign parts be excepted from individual marking because they are substantially transformed by operations performed by PBV and that PBV is the ultimate purchaser of the imported components.
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 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. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 USC 1304.
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 in manufacture, the manufacturer may be the ultimate purchaser if the manufacturer subjects the imported article to a process which results in a substantial transformation of the article.
The case of U.S. 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. Pursuant 19 CFR 134.35, in such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked.
Based on the information submitted that describes the assembly and manufacture of the valves produced by PBV from both foreign and U.S. components, we find that the subject valve parts are substantially transformed into articles with a new name, character or use, when incorporated with other components to produce finished ball valves. Accordingly, PBV is the ultimate purchaser of the parts in question.
In accordance with 19 CFR 134.35, since the subject valve parts are used by PBV in the assembly and manufacture of completed valves and are not sold separately in their condition as imported, they are excepted from individual marking. Only the outermost containers of the imported articles must be marked with country of origin.
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 Kenneth T. Brock at (646) 733-3009.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division