MAR-2 OT:RR:NC:N1:121
Mr. Peter T. Devlin
Logistics Manager
Ryerson Inc.
2621 West 15th Place
Chicago, IL 60608
RE: COUNTRY OF ORIGIN MARKING OF AN IMPORTED ARM END CAP AND SHELL PLATES
Dear Mr. Devlin:
This is in response to your letter dated February 10, 2011, requesting a ruling on whether the proposed method of marking the containers in which an Arm End Cap and Shell Plates are imported with the country of origin in lieu of marking the articles themselves is an acceptable country of origin marking for the imported products. A marked sample container has not been submitted with your letter for review.
The merchandise under consideration is three base metal parts for mud flap hanger brackets. After importation, this merchandise will be used by your customer in the production of hanger brackets and parts thereof used to mount mud flaps to heavy trucks.
Part number N200SS-7EC is described as an Arm End Cap made from 430 bright annealed stainless steel. It is produced by stamping, bending and flattening. After importation, your customer will permanently rivet the Arm End Cap to a Formed Arm to produce a Side Mount Arm. The Formed Arm, which comprises the major part of the Side Mount Arm, is produced by your U.S. customer from a piece of sheared stainless steel that will be formed in a brake press and spot welded. The purpose of the Arm End Cap is to close off the end of the Side Mount Arm. The Arm End Cap comprises a minor portion of the bulk, weight, and value of the Side Mount Arm.
Part number 42144469512P is described as a Shell Plate stamped from a strip of hot rolled pickled and oiled 1018 steel that is not further processed prior to importation. Part number 2814469512 is described as a Shell Plate stamped from a strip of 304 2B stainless steel that is polished before importation. Your customer will produce a Mud Flap Bracket by permanently welding the Shell Plate between two other components (a 30 inch long arm and a 2-1/2 inch long fitting), then polishing. The purpose of the Shell Plate is to serve as a mounting flange for the Mud Flap Bracket. The Shell Plate comprises a minor portion of the bulk, weight and value of the Mud Flap Bracket.
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. In this case, the imported Arm End Cap and Shell Plates are substantially transformed as a result of the U.S. processing, and therefore your customer is the ultimate purchaser of the imported Arm End Cap and Shell Plates. Consequently, under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin. There is no exemption for country of origin marking on the cartons. Accordingly, the imported Arm End Cap and Shell Plates are excepted from individual country of origin marking provided the District Director at the port of entry is satisfied that they will only be used in the manner described above and not otherwise sold, the outermost cartons in which the Arm End Cap and Shell Plates are imported are marked with the country of origin, and the ultimate purchaser will receive them in the marked cartons.
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 Barbara Kaiser at (646) 733-3024.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division