MAR-2 OT:RR:NC:N1:113
Mr. Nicholas D’Andrea
Delmar International Inc.
147-55 175th Street
Jamaica, NY 11434
RE: COUNTRY OF ORIGIN MARKING OF IMPORTED BRASS CARPET FLOOR BOX FLANGES; ARTICLE 509
Dear Mr. D’Andrea:
This is in response to your letter dated February 11, 2009, on behalf of Wiremold, requesting a ruling on the country of origin marking requirements for an imported article which is processed in a NAFTA country prior to being imported into the U.S. Unmarked samples of the items identified as a brass blank and a finished brass carpet floor box flange were submitted with your letter for review. In your original letter dated November 26, 2008, you identified the chrome plated brass carpet floor box flange as part number 817C-CCP. You stated that “Part number 817C-CCP starts off as a blank article of (brass) copper, manufactured in China and shipped to Mexico. In Mexico, the brass blank is processed and manufactured into the finished item, part number 817C-CCP. When received in Mexico, the brass blank is unfinished and incomplete.” You suggested classification for the brass blanks under subheading 7419.91.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of copper, other, cast, molded, stamped or forged, but not further worked, other. The machining and finishing operations performed on the brass blanks in Mexico include drilling and tapping which results in ten threaded holes, inspection of the tapped holes, surface sanding, chrome plating, and packing the finished flanges into shipping containers.
In the case at hand, our office has to consider whether the item identified as a brass blank, upon importation into Mexico, qualifies as a blank under General Rule of Interpretation 2(a) [GRI 2(a)] and, therefore, as an incomplete or unfinished carpet floor box flange of subheading 7419.99.5050, HTSUS. GRI 2(a) states that “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.” The Explanatory Notes (ENs) to GRI 2(a) (Incomplete or unfinished articles) provide guidance on the application of the rule to “blanks”. The ENs to GRI 2(a)(II) state that “The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term “blank” means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part.”
After examining the submitted samples and reviewing the documentation, it is the opinion of this office that the item identified as a brass blank qualifies as a blank for tariff purposes. The brass blanks meet the two criteria for articles which are “blanks” for GRI 2(a) purposes, i.e., (1) each has the approximate shape or outline of the finished part and (2) each brass blank’s sole use is for completion into the finished part. Although the brass blanks may not be to final tolerances and lack the finished surfaces of the finished parts, upon importation into Mexico, the shape or outline of the finished articles can be seen and the blanks are recognizable as the finished flanges they will become. Further, you stated that the brass blanks have no practical use other than for completion into the finished flanges. Each blank has the character of the finished carpet floor box flange at the time of importation into Mexico. Accordingly, we find that the subject blanks are unfinished flanges. Under the authority of GRI 2(a), the applicable tariff provision for the unfinished flanges would be 7419.99.5050, HTSUS, which provides for other articles of copper, other...other.
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 U.S.C. 1304.
The country of origin marking requirements for a “good of a NAFTA country” are also determined in accordance with Annex 311 of the North American Free Trade Agreement (“NAFTA”), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.
Section 134.1(b) of the regulations, 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 this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.
Section 134.1(j) of the regulations, provides that the “NAFTA Marking Rules” are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a “good of a NAFTA country” may be marked with the name of the country of origin in English, French or Spanish.
You stated that the imported brass carpet floor box flanges are processed in a NAFTA country (Mexico) prior to being imported into the U.S. Since Mexico is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported brass carpet floor box flange is a “good of a NAFTA country”, and thus subject to the NAFTA marking requirements.
Part 102 of the regulations, sets forth the “NAFTA Marking Rules” for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.11(a) states that the country of origin of a good is the country in which:
(1) The good is wholly obtained or produced;
The good is produced exclusively from domestic materials; or
Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
Sections 102.11(a)(1) and 102.11(a)(2) do not apply. The brass blank is classified in subheading 7419.99.5050, HTSUS. According to Section 102.20 for 7419.10-7419.99, a change must occur to subheading 7419.10 through 7419.99 from any other subheading, including another subheading within that group. Since the foreign-made brass blank does not undergo the appropriate tariff shift, section 102.11(a)(3) does not apply.
Section 102.11(b) states that except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of this section:
The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good…
When determining the essential character of a good under section 102.11, section 102.18(b) indicates that the only materials that shall be taken into consideration are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed under the section 102.20 specific rule. For purposes of determining which material imparts the essential character to a good under section 102.11, the various factors that may be examined include the nature of each material, such as its bulk, quantity, weight or value, and the role of each material in relation to the use of the good.
Based upon the above factors, we determined that the brass blank is the single component that imparts the essential character to the carpet floor box flange. Accordingly, the country of origin of the brass flange, pursuant to section 102.11(b)(1) of the Customs Regulations, is China.
Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported brass carpet floor box flange is a good of China for marking purposes.
We note that the submitted sample of the brass carpet floor box flange has the letters “US” etched onto the surface. Since a U.S. reference appears on the flanges when they are imported into the U.S., it is necessary to consider the necessity for additional marking. Section 134.46, Customs Regulations (19 CFR 134.46), deals with cases in which the words “United States,” or “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced, appears on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin. In such a case, there shall appear, legibly and permanently, in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by “Made in”, “Product of”, or other words of similar meaning. The purpose of this requirement is to prevent the possibility of misleading or deceiving the ultimate purchaser of an article as to the actual origin of the imported good.
In this instance, the imported brass carpet floor box flange has the letters “US” etched onto the surface. In order to satisfy the close proximity requirement of 19 CFR 134.36, there should appear, legibly and permanently, in close proximity to the letters “US”, and in at least a comparable size, the name of the country of origin, China, preceded by “Made in”, “Product of”, or other words of similar meaning.
The samples will be returned as you requested.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).
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.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, Bureau of Customs and Border Protection, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division