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NY N012516

June 25, 2007

MAR-2 RR:NC:N1:102


Mr. Donald S. Simpson
Barthco International Inc.
5101 S. Broad Street
Philadelphia, PA 19112-1404


Dear Mr. Simpson:

In your letter dated May 29, 2007 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 metal hub castings, part numbers SH60-60, SH67-67 and SH73-73. The hub castings are to be imported by Southland Metals for use exclusively in the production of composite drive shafts for cooling towers by their customer, Amarillo Gear Company. In a letter submitted with your request, Amarillo Gear indicates that the castings are used strictly in the assembly of drive shafts and are not resold in the condition imported as separate parts for after market consumption. Further, Amarillo Gear 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 article 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 the machining and assembly operations performed by Amarillo Gear and in accordance with the above decision, we find that the imported castings, when incorporated with other components to produce composite drive shafts, are substantially transformed into articles with a new name, character or use.

     In accordance with 19 C.F.R. §134.35, Amarillo Gear is the ultimate purchaser of the castings imported by Southland Metals. The castings are excepted from individual marking provided the port director at the port of entry is satisfied that the castings are imported in properly marked containers and that the ultimate purchaser, Amarillo Gear, will receive the castings 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 Brock at 646-733-3009.


Robert B. Swierupski

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