MAR-2 OT:RR:NC:N1:108
Mr. Erik Smithweiss
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
399 Park Avenue
25th Floor
New York, NY 10022-4877
RE: COUNTRY OF ORIGIN MARKING OF IMPORTED TELEVISON COMPONENTS
Dear Mr. Smithweiss:
This is in response to your letter dated February 3, 2015, on behalf of AmTran Logistics, Inc., requesting a ruling on whether or not imported television components are required to be individually marked with the country of origin if they are later to be processed in the U.S. by a U.S. manufacturer. A marked sample was not submitted with your letter for review.
The imported components subject to this ruling request are the following: an LCD subassembly (containing a power board, an inverter board, a front bezel, a stand base, speakers, a power board assembly and wire harnesses), classified under heading 9013, Harmonized Tariff Schedule of the United States (HTSUS); and a main board (containing a television tuner, and audio/video components), classified under heading 8529, HTSUS. All of these components are manufactured in China and are imported separately into the United States.
In the United States, the LCD subassembly and the main board are assembled together to produce a television (noting televisions of different screen sizes will be produced from these components) with a light-emitting diode (LED) backlighting. The assembly process includes the above-stated essential components, which cannot function by themselves, and are not attached prior to importation. Hence, neither the LCD assembly nor the main board can function as a television upon importation into the United States. The finished television is provided for in subheading 8528.72, HTSUS.
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. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. 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 in manufacture, the manufacturer may be the ultimate purchaser if he 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. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See 19 CFR 134.35.
The television components will be substantially transformed when used in the manufacture of the completed television. The manufacturer is the ultimate purchaser of the imported articles pursuant to 19 CFR 134.35(a). Accordingly, the components are excepted from the individual marking requirements of 19 U.S.C. 1304, provided that the containers in which the parts are imported are properly marked with the country of origin and the ultimate purchaser will receive them in the marked containers.
Per 19 CFR ยง181.92(b)(5) [Definitions and general NAFTA advance ruling practice], this office has no authority to issue rulings on goods exported from the U.S. to other NAFTA countries (Canada or Mexico). A list of addresses from which advance rulings for exports into Canada or Mexico can be requested is located at the U.S. Customs and Border Protection website at www.cbp.gov (click on Trade, Trade Programs, International Agreements, International Free Trade Agreements, North American Free Trade Agreement, Advance Rulings).
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 Lisa Cariello at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division