MAR-2-OT:RR:NC:4:405
Mr. J. Michael Taylor
King & Spalding
1700 Pennsylvania Avenue, NW
Suite 200, Washington, D.C. 20006-4707
RE: COUNTRY OF ORIGIN MARKING OF IMPORTED WIRE REINFORCED PLASTIC TUBES; ARTICLE 509
Dear Mr. Taylor:
This is in response to your letters, dated March 14 and May 22, 2013, requesting a ruling on the country of origin marking requirements for an imported article, which is claimed to be a good of a NAFTA country that is later to be further processed in the U.S. into a finished article. A representative sample of the imported article and the finished article in its individual packaging was submitted with your letter for review.
More specifically, your request concerns:
“The wire-reinforced models in Terumo’s three product lines of Soft-Flow Aortic Cannulae-the Soft-Flow Aortic Cannulae Without Suture Flange (‘Soft-Flow without Flange’), the Soft-Flow Aortic Cannulae With Suture Flange (‘Soft-Flow With Flange’), and the Soft-Flow Extended Aortic Cannulae (‘Soft-Flow Extended’) (collectively ‘Soft-Flow Cannulae’).”
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 state that the imported plastic tube with spiral wire reinforcement is imported from Mexico, a NAFTA country, which is later to be processed in the U.S. into a finished article, a Soft-flow Aortic Cannula, with the addition of specialized and complex components at each end which originate in the United States. In order to determine the country of origin marking requirements, first, we must apply the NAFTA Marking Rules in order to determine whether the plastic tube with spiral wire reinforcement “is a good of a NAFTA country,” prior to being further processed in the U.S.
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.
Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that, for marking purposes, the imported plastic tube with spiral wire reinforcement is a good of Mexico, a NAFTA country, prior to being further processed in the U.S.
The next issue is whether the U.S. processor is the ultimate purchaser within the meaning of section 134.35(b). Section 134.35(b) of the regulations provides that:
“A good of a NAFTA country which is to be processed in the United States in a manner that would result in the good becoming a good of the United States under the NAFTA marking rules is excepted from marking. Unless the good is processed by the importer or on its behalf, the outermost container of the good shall be marked in accord with this part.”
Based on the facts of this case, we find that the Soft-Flow Aortic Cannulae, as a result of the further processing performed in the U.S., in the manner described above, become articles of U.S. origin under Part 102 of the regulations.
Accordingly, the imported plastic tubes with spiral wire reinforcement, imported from Mexico, are excepted from individual marking.
Regarding the “Assembled in the USA by…” printed on the individual package of the sample Soft-Flow Aortic Cannula, Headquarters Ruling Letter H035441, dated September 11, 2008, stated, “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 direct any questions to the FTC regarding whether “Assembled in the USA by…” are “similar words denoting U.S. origin” or whether the issue is moot since they would consider “Made in USA” itself acceptable in this case.
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 J. Sheridan at (646) 733-3012.
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,
Thomas J. Russo
Director
National Commodity Specialist Division