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NY 807935

March 17, 1995

MAR-2-84:S:N:N1:110 807935


Ms. Kathleen F. Kocsis
Tower Group International, Inc.
128 Dearborn Street
Buffalo, N.Y. 14207-3198


Dear Ms. Kocsis:

This is in response to your letter dated March 8, 1995, on behalf of Teleline Canada Ltd., requesting a ruling on the proper country of origin and marking of refurbished monochrome monitors. Four samples of monitors were submitted with your letter for review.

The merchandise before us involves four models of monochrome monitors, models Dotronix DXM 911, Dotronix DXM 1211 (manufactured in the United States), Electrohome V20, and Electrohome V32 (manufactured in Canada). These monitors are designed primarily for use in financial trading rooms, and are either 9" monochrome monitors or 12" monochrome monitors. The monitors that are shipped to Canada from their customers vary in age from three to nine years old. The monitors are then refurbished in Canada by Teleline and shipped back to the United States.

The specific steps taken by Teleline for the refurbishing of the monitors involves the following steps:

1. The monitor housings (case) and back panel are removed from the monitor.
2. The housing and back panel are sent out to a local painter to be painted if requested by the customer.
3. The printed circuit boards are inspected and tested, and defective components are replaced.
4. A new Cathode ray tube is installed in each monitor. 5. The tube is tested, and the monitor is properly aligned to the customer's specifications.
6. The units go through a dielectric strength test. 7. The units are packed two per box and forwarded to the customer sites.

The amount of repair required depends on the condition of the monitor upon receipt, and the level of complexity for the repair also depends on the condition of the units. Such apparatus as Video Generators, RMS Digital Multimeters, and Oscilloscopes are used in the repair and testing of the monitors. The US monitors (Dotronix) are marked made in the USA prior to refurbishing and marked with a "Product of Canada" label after refurbishing. The Electrohome markings are not changed as they originated in Canada.

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.

Section 181.64, Customs Regulations (19 CFR 181.64) defines "repairs or alterations" for purposes of NAFTA as follows:

For purposes of this section, "repairs or alterations" means restoration, addition, renovation, redying,cleaning, restirilizing, or other treatment which does not destroy the essential characteristics of, or create a new or commercially different article from, the good exported from the United States.

The replacement and/or addition of parts to restore the used monitors to their original condition may constitute repair operations for purposes of subheading 9802.00.50, HTSUS, provided that the particular article does not lose its identity and the replacement and/or additions are not so extensive as to create a new or different article.

Based on the information provided by the inquirer, the Dotronix monitors that are shipped to Canada and subsequently returned are basically the same article, and are not a new or commercially different article. It also appears that all of the components, for both types of monitors, incorporates goods that are originating material, from either the United States or Canada.

Based on the information provided, the operations performed in Canada for the used Dotronix monitors are considered "repairs" within the meaning of subheading 9802.00.50.

Noting T.D. 94-4, the General exceptions to marking requirements under 134.32 were amended to include the following:

(r) Except for articles that are included within the scope of 12.130 of this Chapter, articles of U.S. origin (determined as such under part 102 of this Chapter prior to exportation from the U.S.) that are exported for repairs or alterations and returned.

Since the Dotronix monitors are of US origin prior to shipment to Canada, and qualify for treatment under 9802.00.50, we are of the opinion that the monitors would be exempt from the general marking requirements. The Dotronix monitors Country of Origin would thus be the United States.

The Electrohome monitors, based on the information provided, would continue to have a Country of Origin as Canada, and should be marked "Made in Canada" as originally marked.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Jean F. Maguire
Area Director

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