United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2002 NY Rulings > NY I84695 - NY I84745 > NY I84700

Previous Ruling Next Ruling
NY I84700

August 21, 2002

MAR-2 RR:NC:1:102 I84700


Mr. Robert L. Sosa, Jr.
Jenkins & Gilchrist
112 East Pecan (Suite 900)
San Antonio, Texas 78205


Dear Mr. Sosa:

This is in response to your letter dated July 24,2002 requesting a ruling on behalf of your client CompressorWorks. The issue raised is whether country of origin marking is required on imported parts for use in the manufacture of motor vehicle air conditioning compressors. 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 CompressorWorks plans to source various compressor parts produced in Korea, Brazil and the United States that will be used domestically in the manufacture and assembly of complete air conditioning compressors. You request that the foreign parts be excepted from individual marking because they are substantially transformed by operations performed by CompressorWorks, and that CompressorWorks is the ultimate purchaser of the imported parts. Presumably, CompressorWorks will sell only complete compressors, and will not sell the imported parts as spares or replacements.

Based on the detailed information describing the manufacture, assembly and testing of the compressors to be produced by CompressorWorks from the foreign and domestically 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 compressors. Accordingly, CompressorWorks is the ultimate purchaser of the parts in question.

In accordance with 19 CFR 134.35, the subject compressor parts, provided they are used by CompressorWorks in the assembly of completed compressors 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

Previous Ruling Next Ruling