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NY B87838

October 3, 1997

CLA-2-84:RR:NC:1:102 B87838


TARIFF NO.: 8481.90.9060

Mr. Bruce E. Goodwin
J.F. Moran Co., Inc.
Harbour Tech Center (Suite 210)
160 Second Street
Chelsea, Massachusetts 02150

RE: The classification and country of origin marking of "raw" forged valve bodies from Italy.

Dear Mr. Goodwin:

This is in response to your letter dated July 24,1997 requesting a classification ruling on behalf of your client Boss Valves. The item in question is a "raw" forging of a valve body to be used in the manufacture of valves. Samples of the forging as imported and after processing in the United States were submitted.

You indicate that Boss Valves is a domestic manufacturer of brass ball valves for residential, commercial and industrial applications. To satisfy their production needs for finished valve bodies, Boss Valves has established a manufacturing facility, Russon Consolidated Industries (RCI), to fabricate valve bodies from brass forgings which will be imported from Italy.

RCI will perform several machining operations, including turning, boring and threading, on the imported forgings and supply the finished valve bodies to Boss Valves. The raw forgings as imported have the approximate shape of a finished valve body, but until machined by RCI, are not ready for direct use as such,. RCI will be the importer of record and the forgings will not be sold in the condition as imported.

The applicable subheading for the forged valve bodies will be 8481.90.9060, Harmonized Tariff Schedule of the United States (HTS), which provides for other valve bodies. The rate of duty will be 1.5 percent ad valorem.

In your letter you also request that we consider whether the "raw" forgings may be excepted from country of origin marking requirements.

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 forgings are substantially transformed as a result of the U.S. processing, and therefore RCI is the ultimate purchaser of the imported forging and only the containers are required to be marked with the country of origin "Italy".

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 Kenneth T. Brock at 212-466-5493.


Robert Swierupski

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