MAR-2 RR: NC: 1:108 R02686

Mr. John B. Pellegrini
McGuireWoods LLP
1345 Avenue of the Americas
New York, NY 10105-0106

RE: THE COUNTRY OF ORIGIN MARKING OF a cellular telephone.

Dear Mr. Pellegrini:

This is in response to your letter dated October 14, 2005, on behalf of Pantech & Curitel Communications, Inc., requesting a ruling on whether the proposed marking "Made in Korea" is an acceptable country of origin marking for an imported digital mobile telephone. A marked sample was not submitted with your letter for review.

The item in question, denoted as model TX-55C, is manufactured from various parts from varying countries. The manufacturing process takes place in both Korea and China. The telephone’s printed circuit board is fully fabricated in Korea. The printed circuit board is then shipped to China where it is combined with the keypad, housing, antenna and battery pack to form a complete and fully functional cellular telephone.

It is proposed that the article be marked designating Korea as the country of origin because the operation in Korea represents the greater difficulty and cost of manufacture.

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 mane of the country of origin of the article.

Section 134.1(b), Customs 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 this part.

Accordingly, the country of origin of an article is the country in which it was wholly grown, or, if processed in several countries, the country in which the last substantial transformation has occurred.

It is the opinion of this office that the substantial transformation takes place in China. The manufacturing process, in China, produces a new and different article of commerce having a distinctive name, character and use. Therefore the cellular telephone should be marked “Made in China”.

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 Michael Contino at 646-733-3014.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division