OT:RR:NC:N5:116
David Lee
Logisteed America, Inc.
255 E. 2nd Street Unit #1
Mineola, New York 11501
RE: The country of origin of recycled magnesium alloy ingots
Dear Mr. Lee:
In your letter dated January 21, 2026, you requested a country of origin ruling for the purposes of marking on
behalf of your client, Morimura Bros. (U.S.A.), Inc.
According to your submission, magnesium scrap sourced from Thailand, China, and the Netherlands and
MnCl (manganese chloride) and AlBe (aluminum beryllium) additives of Chinese origin are shipped to Japan
where they are joined with magnesium scrap of Japanese origin and made into recycled magnesium ingots. In
Japan, the scrap is melted, MnCl and AlBe are added to the molten metal to achieve the desired chemistry,
and then cast into ingots which are trimmed and scaled before being imported into the United States (U.S.).
You indicate that the ingots will be used as a raw material for magnesium die-casting and as an additive for
aluminum alloy production.
When determining the country of origin for purposes of marking, the substantial transformation analysis is
applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. The test for
determining whether a substantial transformation will occur is whether an article emerges from a process
with a new name, character, or use different from that possessed by the article prior to processing. See Texas
Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality
of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201
(Fed. Cir. 1993).
Magnesium scrap sourced from Japan, Thailand, China, and the Netherlands is melted in Japan and cast into
ingots which are trimmed and scaled prior to importation into the U.S. MnCl and AlBe are added to the melt
prior to being cast to attain the desired chemistry. Based on the manufacturing processes performed in Japan,
this office finds that a substantial transformation has taken place. Magnesium scrap from various countries is
sent to Japan and melted with Japanese scrap and cast into magnesium ingots, new products with a different
commercial use. Accordingly, the country of origin for the purposes of marking is Japan.
In addition, you requested a ruling on the proper marking of the magnesium ingots. Section 304 of the Tariff
Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin
imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent
in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the
marking on the imported goods the country of which the goods is the product. The evident purpose is to mark
the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were
produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States
v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the
country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP
Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, or
growth of any article of foreign origin entering the United States. 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 the meaning of the marking laws and regulations.
This office has determined that the magnesium scrap has been substantially transformed into ingots as a
result of the manufacturing operations performed in Japan. As such the country of origin for marking
purposes is Japan. Please be advised that certain classes of articles which are specified in section 134.33,
Customs Regulation (19 CFR 134.33), known as the "J-list," are excepted from individual country of origin
marking pursuant to 19 U.S.C. 1304(a)(3)(J). One of the exceptions to this statute is metal bars, including
billets, blocks, blooms, ingots, etc. As such, the ingots do not have to be marked with “Made in Japan.” 19
CFR 134.33 further provides that if an article included on the "J-list" is imported in a container, the
outermost container in which the article ordinarily reaches the ultimate purchaser is required to be marked to
indicate the origin of its contents.
This ruling does not address the applicability of any additional duties, taxes, fees, exactions and/or other
charges, which may apply to the goods discussed herein. This includes, but is not limited to, tariffs and other
duties as provided for in Subchapter III to Chapter 99, HTSUS. Thus, for example, in addition to the
classification, the merchandise covered by this ruling may also need to be reported with either the Chapter 99
provision under which an additional tariff applies or one of the Chapter 99 provisions covering exceptions to
such tariffs.
For further information to assist with the importation process, please refer to the frequently updated Cargo
Systems Messaging Service (CSMS) messages at
https://www.cbp.gov/trade/automated/cargo-systems-messaging-service and Frequently Asked Questions on
the Trade Remedy/IEEPA page at
https://www.cbp.gov/trade/programs-administration/trade-remedies/IEEPA-FAQ.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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 Angelia Amerson at [email protected].
Sincerely,
(for)
Denise Faingar
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division