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NY H87063

January 23, 2002

MAR-2 RR:NC:1:102 H87063


Mr. J.F. Chester
Braumiller & Rodriquez, LLC
Post Office Box 1321587
Dallas, Texas 75313-1587


Dear Mr. Chester:

This is in response to your letter dated January 4, 2002 requesting a ruling on behalf of your client Flow Design, Incorporated, herein after “Flow Design”. The issue raised is whether country of origin marking is required on imported metal casings for use in the manufacture of a water valve used in heating, ventilation, and air conditioning (HVAC )systems. Samples were submitted with your letter for review.

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 USC 1304.

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 the manufacturer subjects the imported article to a process which results in a substantial transformation of the article. 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. Pursuant 19 CFR 134.35, in such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked.

In your request you indicate that Flow Design imports hollow cylindrical metal casings. The casings serve as housings for a number of internal parts that work together to regulate the flow of water in commercial HVAC systems. The internal parts include a number of flow regulating cartridges/canisters that are individually calibrated to regulate a specific amount of water flow. The cartridges/canisters are permanently installed by Flow Design into the imported casings to create a water valve. You also explain that the ruling request pertains only to the marking of foreign casings used in the manufacture of the water valves, which are made by Flow Design in the United States from a combination of domestic and foreign parts. You request that the foreign casings be excepted from individual marking because they are substantially transformed by assembly operations performed by Flow Design , and that Flow Design is the ultimate purchaser of the imported parts.

Based on the information and samples provided we find that the subject casings are substantially transformed into articles with a new name, character or use, when incorporated with other components to produce finished valves. Further, you state that Flow Design never sells the imported casings in their imported condition. Accordingly, Flow Design is the ultimate purchaser of the casings in question.

In accordance with 19 CFR 134.35, the subject casings, provided that they are used by Flow Design in the assembly of completed valves and not sold separately in their condition as imported, are excepted from individual marking and only the outermost containers of the imported articles must be marked with country of origin.

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 646-733-3009.


Robert B. Swierupski

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