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NY H87546

February 21, 2002

MAR-2 RR:NC:1:102 H87546


Mr. Donald S. Simpson
Barthco Trade Consultants
7575 Holstein Avenue
Philadelphia, PA 19153


Dear Mr. Simpson:

In your letter dated January 15, 2002 you requested a ruling on an exception from the country of origin marking requirements for imported articles on behalf of your client Southland Metals.

The articles in question are cast iron valve bonnets to be imported by Southland Metals for use exclusively by American Valve & Hydrant in the production of gate valves. In a letter submitted with your request, American Valve & Hydrant indicates that the valve bodies are used strictly in the assembly of complete valves and are not resold as separate parts for after market consumption. Further, American Valve & Hydrant indicates that they are aware that China is the country of origin of the imported articles.

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 C.F.R. Part 134 implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304.

Pursuant to section 134.35, Customs Regulations (19 C.F.R. §134.35), an imported articles that is substantially transformed in the U.S. is excepted from individual country of origin marking and only the outermost containers of the imported articles must be marked with country
of origin. An article is substantially transformed if it is “so processed in the U.S. that it loses its identity in a tariff sense and becomes an integral part of a new article having a new name, character and use.” U.S. v. Gibson-Thomsen Company, Inc., 27 CCPA 267 (1940).

As a result of operations performed by American Valve & Hydrant and in accordance with the above decision, we find that the imported valve bonnets when incorporated with other components to produce gate valves are substantially transformed into articles with a new name, character or use.

In accordance with 19 C.F.R. §134.35, American Valve & Hydrant is the ultimate purchaser of the valve bonnets imported by Southland Metals. The valve bodies are excepted from individual marking so long as the port director at the port of entry is satisfied that they are imported in properly marked containers and the ultimate purchaser will receive the valve bodies in these containers.

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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