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NY I82671

June 21, 2002

MAR-2 RR:NC:1:102 I82671


Mr. Daniel E. Waltz
Patton Boggs LLP
2550 M Street, NW
Washington, DC 20037-1350


Dear Mr. Waltz:

This is in response to your letter dated May 14,2002 requesting a ruling on behalf of your client Crane Valve North America, hereinafter “CVNA”. The issue raised is whether country of origin marking is required on imported parts for use in the manufacture of valves. A detailed description of the manufacturing process to which the parts are subjected was submitted for our 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 submission you indicate that CVNA plans to import a variety valve parts from China that will be used in the United States in the manufacture and assembly of complete gate valves. You request that the foreign parts be excepted from individual marking because they are substantially transformed by operations performed by CVNA, and that CVNA is the ultimate purchaser of the imported parts. Presumably, CVNA will sell only assembled valves, and will not sell the imported parts as spares or replacements.

Based on the detailed information submitted that describes the manufacture, assembly and testing of the valves to be produced by CVNA from the foreign sourced components, we find that the parts are substantially transformed into articles with a new name, character or use, when assembled together to produce finished valves. Accordingly, CVNA is the ultimate purchaser of the parts in question.

In accordance with 19 CFR 134.35, the subject valve parts, provided that they are used by CVNA in the assembly of completed valves and not sold separately in their condition as imported, are excepted from individual marking. 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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