NY D86001 - COUNTRY OF ORIGIN MARKING OF IMPORTED GUITAR STRINGS; ARTICLE 509 - United States International Trade Commision Rulings

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March 8, 1999

MAR-2 RR:NC:2:227 D86001

CATEGORY: MARKING

James J. Kelly
Barthco Trade Consultants, Inc.
7575 Holstein Avenue
Philadelphia, PA 19153

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED GUITAR STRINGS; ARTICLE 509

Dear Mr. Kelly:

This is in response to your letter dated December 9, 1998, on behalf of C.F. Martin & Co., Inc., requesting a ruling on the country of origin marking requirements for an imported article which is processed in a NAFTA country prior to being imported into the U.S. Unmarked samples were submitted with your letter for review.

You state that C.F. Martin, a manufacturer of guitars in the United States, intends to forward to Mexico components for the production and packing of guitar strings as follows:

1. Wire is received from U.S. supplier on spools. Metal ball ends (ferrules) are received from Switzerland in bulk. All packaging materials are produced in U.S. Wire is cut to string size and a ball end attached to each string in the U.S. Ball-ended strings, wrap wire produced in the U.S. and packaging material are sent to Mexico. In Mexico, wrap wire is applied to 4 ball-ended strings of a set consisting of 6 ball-ended strings. The set of 6 strings is inserted into paper envelopes and packaged into cardboard pouches. The pouches are packaged into dozen boxes and shipping cases and forwarded to the U.S. as finished goods inventory. 2. Nylon wire is received from Argentina supplier on spools and cut to guitar string length in the U.S. Wrap wire is received from U.S. supplier on spools. Plastic ball ends are received from U.S. supplier in bulk. All packaging materials are produced in U.S. The nylon strings, wrap wire, plastic ball ends and the packaging material are sent to Mexico. In Mexico, the nylon strings are ball-ended. Half of the strings are wrapped and the other half are unwrapped. The strings are put up in sets with a set consisting of 6 strings; 3 wrapped and 3 unwrapped. Each set is inserted into a paper envelope and packaged into a cardboard pouch. The pouches are packaged into dozen boxes and shipping cases and forwarded to the U.S. as finished goods inventory.

3. Nylon wire is received from Argentina supplier and cut to guitar string length in the U.S. Wrap wire is received from U.S. supplier on spools. All packaging materials are produced in U.S. The nylon strings, wrap wire and the packaging material are sent to Mexico. In Mexico, half of the strings are wrapped and the other half remain unwrapped. The strings are put up in sets with a set consisting of 6 strings; 3 wrapped and 3 unwrapped. Each set is inserted into a paper envelope and packaged into a cardboard pouch. The pouches are packaged into dozen boxes and shipping cases and forwarded to the U.S. as finished goods inventory.

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 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. (Emphasis added).

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 guitar strings are processed in a NAFTA country "Mexico" prior to being imported into the U.S. Since, "Mexico" is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported guitar strings are a good of a NAFTA country", and thus subject to the NAFTA marking requirements.

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 the imported guitar strings of scenarios #1 and #3 are a good of the U.S. for marking purposes on the basis the guitar strings have not been advanced in value or improved in condition, as the operations performed in Mexico are considered minor processing.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported guitar strings of scenario #2 is a good of Mexico for marking purposes on the basis the guitar strings have been advanced in value or improved in condition as a result of the operations performed in Mexico.

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 George Kalkines at 212-637-7073.

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, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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