MAR-2 OT:RR:NC:N1:106
Mr. Justin Wertz
Cessna Aircraft Co.
1935 Midfield Rd.
Wichita, KS 67209
RE: COUNTRY OF ORIGIN MARKING OF IMPORTED AIRCRAFT
Dear Mr. Wertz:
This is in response to your undated letter requesting a ruling on the country of origin marking requirements for imported aircraft which are assembled from U.S. components in China. A marked sample was not submitted with your letter for review.
According to your letter the aircraft in question, a model 162 Skycatcher, will be initially constructed at the Shenyang Aircraft facility in China. Shenyang will manufacture the aircraft structure and incorporate an engine, propeller and avionics of US origin. The aircraft will then be disassembled into major components such as the wings, fuselage and tail section for shipment to the US. The aircraft will then be reassembled in the US. You state that options such as co-pilot displays and a recovery parachute may also be added in the US. The aircraft will then be tested and delivered to the ultimate consumer. The aircraft that is being built in the US is essentially the same aircraft that was built in China, with all necessary components that make it functional included. The operations which are necessary in the US after disassembly in China are to restore the aircraft to the same design and use as the original assembly in China. Based upon these facts, and in accordance with General Rule of Interpretation 2 (a), the aircraft would be considered to be a product of 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 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.
The “country of origin” is defined in 19 CFR 134.1(b) as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. 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.” For tariff purposes, the courts have held that a substantial transformation occurs if a new and different article emerges having a distinctive name, character or use. Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
In this case, the assembly process does not result in a substantial transformation. The assembled aircraft does not have a distinctive name, character or use different from the unassembled aircraft, and therefore is a good of Chinese origin for marking purposes. The product itself must be marked with the words "Made in China" in a legible, indelible, permanent and conspicuous manner n accordance with Section 134.46 of the Customs Regulations (19 C.F.R. 134.46).
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 Mark Palasek at (646) 733-3013.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division