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NY H82321

June 25, 2001

CLA-2-84:RR:NC:1:102 H82321


TARIFF NO.: 8412.90.9080

Ms. Pamela J. Gruszczynski
Midwest Transatlantic Lines, Inc.
1230 West Bagley Road
Berea, OH 44017-2910

RE: The tariff classification and marking of hydraulic hose fittings and their components from various countries.

Dear Ms. Gruszczynski:

This is in response to your letter dated May 24, 2001, on behalf of Parker Hannifin Corporation, requesting a ruling on the classification and marking of imported hose fittings and their components. Samples and descriptive literature were submitted with your letter for review.

The articles in question are described as hydraulic fittings and parts of hydraulic fittings, which include nuts, nipples and shells. The fittings are used in conjunction with hose to form fluid connections within the hydraulic systems found in agricultural equipment, trucks, off-road equipment, and machine tools.

You indicate that Parker Hannifin assembles hydraulic hose and hose fittings in the United States, importing finished hose fittings, as well as parts of hose fittings, and material lengths of hose from several countries. In some cases, Parker Hannifin cuts the hose to shorter lengths, attaches finished hose fittings, and then resells the hose assembly. In other cases, your client simply resells finished fittings and hose in bulk to distributors. The distributors then cut the hose, affix the fittings, and resell the hose assembly. Imported parts of fittings are used solely by Parker Hannifin to produce finished fittings and are never sold individually in their condition as imported.

The applicable subheading for the hydraulic hose fittings and their parts, i.e., the nuts, nipples and shells, will be 8412.90.9080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts of hydraulic systems as other parts of other engines and motors. The rate of duty is free.

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, imported nuts, nipples and shells used tin the production of hose fittings are substantially transformed as a result of the U.S. processing. Parker Hannifin is considered to be the ultimate purchaser of those components. Accordingly, the imported components are excepted from marking and only the outermost container in which they are imported is required to be marked.

Hose fittings imported as finished articles are not substantially transformed as a result of the U.S. processing. Parker Hannifin is not the ultimate purchaser of the imported fittings. The imported hose fittings are not excepted from marking and must be marked to indicate their country of origin.

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 Kenneth T. Brock at 212-637-7026.


Robert B. Swierupski

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