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 > 2006 NY Rulings > NY M82087 - NY M82134 > NY M82117

Previous Ruling Next Ruling
NY M82117

May 5, 2006

MAR-2 RR:NC:N1:117 M82117


Mr. Paul S. Anderson
Sonnenberg and Anderson
300 South Wacker Drive
Suite 1220
Chicago, Illinois 60606


Dear Mr. Anderson:

This is in response to your letter dated April 5, 2006 requesting a ruling on the correct country of origin for three powders that are assembled into cored wire in France. It also asks that we rule on whether the proposed marking of the outer portion of the reels is an acceptable country of origin marking for the imported cored wire. A marked sample was not submitted with your letter for review.

Three separate scenarios have been submitted for review. In the first scenario, calcium powder that is sourced from either Russia or China will be mixed with iron powder sourced from France. The mixed powder will be encapsulated into steel strip of French origin and subsequently wound into coils. The mixing, encapsulating and winding processes are all performed in France. In the next scenario, pure calcium powder sourced from either Russia or China will merely be encapsulated into the cored wire. Similarly, in the last scenario, ferrotitanium powder from Russia, China or another source country will be encapsulated. In all cases the encapsulation process is performed in France.

In all three scenarios, steel strip coil that is sourced in France is unwound and fed into a roller former machine. The powder is inserted and compressed into the sheath. The sheath is then secured encapsulating the powder. In all these instances, the cored wire will be used in the production of steel during a continuous casting process.

Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of the marking laws and regulations.

For country of origin marking purposes, a substantial transformation of an imported article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the imported article.

The encapsulation of a powder does not result in a substantial transformation. These powders possess the characteristics that effect changes in metallurgy prior to being encapsulated. The encapsulation process is merely a packing process and does not change the name, use and characteristics of the powder. The country of origin for the Calcium cored wire and for the Ferrotitanium cored wire will be the country in which the respective powder is manufactured.

The mixing of the pure calcium and pure iron powders in France results in an iron alloy powder identified as a calcium iron (CaFe) powder. This iron alloy powder has different uses and characteristics than either the pure iron powder or the pure calcium powder. The mixing of the two powders in France effects a substantial transformation. The country of origin for the cored wire CaFe powder will be France.

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.

19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d) provide that an article may be excepted from individual country of origin marking if the marking of its container will reasonably indicate its origin. In this case the cored wires are packed onto reels. The reel is the container of the cored wire. Therefore, either each cored wire or each reel of wire must be marked with its country of origin. You have indicated that that the cored wire will be delivered to the ultimate purchaser with the outer reels marked with the English name of the country of origin. You have also indicated that this marking will be clear, conspicuous, indelible and legible. Accordingly, marking of the outer reel of the cored wires will satisfy the country of origin marking requirements under 19 U.S.C. 1304 (a)(3)(D). 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 Gloria Stingone at 646-733-3020.


Robert B. Swierupski

Previous Ruling Next Ruling