MAR-2 OT:RR:NC:N1:113
Mr. Enrique Barron
Bel Manufacturera SA de CV
Av Santiago Blancas #551
Cd Juarez chih
32599 Mexico
RE: COUNTRY OF ORIGIN MARKING OF ALUMINUM ELECTRICAL BOXES;
ARTICLE 509
Dear Mr. Barron:
This is in response to your letter dated October 14, 2010, requesting a ruling on the country of origin marking requirements for aluminum electrical boxes from the United States (U.S.) which are exported to a NAFTA country (Mexico) for further processing. After further processing in Mexico, the subject boxes are imported back into the U.S. No samples of the boxes were provided for review. Product description, process and cost sheets were submitted with your letter.
In your letter, you identified the articles at issue as several models of the Hubbell Killark “FS” family of aluminum boxes including the aluminum box catalog FS-1, FSS-1, FSC-2 and FSCC-2. You stated that the “Casting aluminum box of U.S. origin is exported to Mexico...After further process in MX, the finished aluminum box is imported back from Mexico under the same Harmonized Code 7616.99.5090. You indicate that the manufacturing processes performed in Mexico include “paint, tap holes, drill ground screw and packaging…Once packaged the finished product is imported from Mexico.” After reviewing the submitted documentation, our office agrees with your suggested classification for the aluminum casting box manufactured in the U.S. and the finished aluminum box exported from Mexico under subheading 7616.99.50, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of aluminum, 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.
In order to determine the country of origin marking requirements, first, we must apply the NAFTA Marking Rules in order to determine whether the subject box "is a good of a NAFTA country". 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 102.1(e), Customs Regulations (19 C.F.R. §102.1(e)) defines “foreign material” as “a material whose country of origin as determined under these rules is not the same country of origin as the country in which the good is produced.”
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 aluminum casting box is classified in subheading 7616.99.50, HTSUS. According to Section 102.20 for 7616.10-7616.99, a change must occur to subheading 7616.10 through 7616.99 from any other subheading, including another subheading within that group. Since the aluminum casting box 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 aluminum casting box is the single component that imparts the essential character to the aluminum electrical box. Accordingly, the country of origin of the finished aluminum box, pursuant to section 102.11(b)(1) of the Customs Regulations, is the U.S.
Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the aluminum electrical box is a good of the U.S. for marking purposes.
If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase “Made in the USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S.
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.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division