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NY K88379

August 27, 2004
MAR-2 RR:NC:1:102 K88379


Mr. W.J. Gonzalez
Trans-Union Customs Services, Inc.
11941 S. Prairie Avenue
Hawthorne, CA 90250


Dear Mr. Gonzalez:

In your letter dated July 28, 2004 you requested a marking ruling on behalf of your client Champion Irrigation Products.

The articles in question are described as a solenoid, an actuator, a brass body for an anti-siphon valve, and a pop-up sprinkler body. Descriptive literature and samples were submitted.

You indicate that solenoid is assembled in China from parts originating in the United States and China. The actuator is assembled in the United States from two components originating in either China or Thailand. You also indicate that the actuator is always sold with the solenoid, and we assume for the purposes of this ruling that your client assembles the solenoid with actuator in the United States. The body for the anti-siphon valve is made in China and assembled in the United States with domestic components and may be sold with or without the actuator. The body for the pop-up is also made in China and assembled in the United States with domestic components into a complete pop-up sprinkler for use in irrigation systems.

In your request you inquire as to the proper marking of the imported components and the articles that are assembled in the United States.

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.

Based on the information made available, all the imported components are used by Champion Irrigation Products in the production of finished valves, actuators and sprinkler heads. With the exception of the solenoid, which on occasion may be sold as a spare part, the imported components are not sold in their condition as imported.

Accordingly, we find that the imported components are substantially transformed into articles with a new name, character or use, when incorporated with other components to produce finished valves, actuators and sprinkler heads, and that Champion Irrigation Products is the ultimate purchaser of such parts. In accordance with 19 CFR 134.35, the imported components, provided they are used by Champion Irrigation Products in the assembly of completed valves, actuators and sprinkler heads 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.

However, on those occasions when the imported solenoids are not assembled into finished actuators and/or valves, but sold to customers as spare parts, the “ultimate purchaser” of the silencers is not Champion Irrigation Products, but the customer to whom the solenoids are sold. In this regard, we note that where the outermost container of the solenoids are correctly marked with the country of origin of the articles contained within, the imported solenoids, including those solenoids that may be repacked and distributed as spare parts, are excepted form individual marking at the time of importation pursuant to 19 U.S.C. §1304(A)(3)(D) and CFR 134.32(d), provided that the certification set forth in 19 C.F.R. §134.26 is executed, and the spare parts will reach the retail purchaser marked in accordance with the requirements of 19 U.S.C. §1304 and 19 C.F.R. Part 134.

The spare parts must be individually marked to indicate to the customer that China is the country of origin. Your proposed use of a label or hang-tag to indicate that the solenoid are assembled in China from components originating from China and the United States is acceptable, provided the Port Director at the port of entry is satisfied that the proposed marking is conspicuous, legible and sufficiently permanent to reach the customer.

With respect to your inquiry as to the acceptability of your proposed markings for the finished valves and actuators that are assembled in the United States, we suggest that you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, NW, Washington, D.C. 20508, as to whether the proposed markings satisfy there requirements.

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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