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NY N015312

August 13, 2007

MAR-2 RR:NC:N1:112


Donald S. Simpson
Senior Vice President
5101 S. Broad Street
Philadelphia, PA 19112-1404


Dear Mr. Simpson:

This is in response to your letter dated July 26, 2007, on behalf of Southland Metals, Inc., requesting a ruling on whether imported metal stator frames are required to be individually marked with the country of origin if they are later to be processed in the U.S. by a U.S. manufacturer. A marked sample was not submitted with your letter for review.

The articles concerned are metal stator frames (05SF1100/1100A01, 05SF1101/1101A01, 06SF1107/1107A01, 06SF1108/1108A01, 07SF1104/1104A01, 07SF1105/1105A01, 07SF1106/1106A01, 07SF1108/1108A01, 09SF1107/1107A01, 09SF1108/1108A01, 09SF1113/1113A01, 09SF1117/A01, 10SF1112/A01, 10SF1118/A01, 12SF1109/A01) which are imported by Southland Metals, Inc. and sold exclusively to Baldor Electric Company of Fort Smith, AR. Baldor Electric Company uses these stator frames in the production/assembly of their electric motors. The purpose of the stator frame is to hold/contain all internal components of the motor and to provide air cooling to the motor. We are in receipt of an affidavit from Baldor Electric Company which acknowledges they are aware that these metal stator frames are manufactured in China.

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 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. 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 he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that 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. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.

In this case, the imported metal stator frames are substantially transformed as a result of the U.S. processing. Therefore the U.S. manufacturer is the ultimate purchaser of the imported metal stator frames and under 19 CFR 134.35, only the containers which reach the ultimate purchaser are required to be marked with the country of origin "China".

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 Steve Pollichino at 646-733-3008.


Robert B. Swierupski

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