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NY N023493

March 18, 2008

MAR-2 OT: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 January 21, 2008 you requested a ruling on an exception from the country of origin marking requirements for imported articles on behalf of your client Southland Metals. A marked sample was not submitted with your letter for review.

The articles in question are gear cases, part numbers CF 210 and CF 410. The gear cases are to be imported by Southland Metals for use exclusively in the production of gear drives by their customer, Amarillo Gear Company. In a letter submitted with your request, Amarillo Gear indicates that the gear cases are used strictly in the assembly of gear drive assemblies 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 assembly operations performed by Amarillo Gear and in accordance with the above decision, we find that the imported gear cases when incorporated with other components to produce gear drive assemblies 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 gear cases imported by Southland Metals. The gear cases are excepted from individual marking so long as the port director at the port of entry is satisfied that they are imported in properly marked containers and the ultimate purchaser, Amarillo Gear, will receive the gear cases 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 T. Brock at 646-733-3009.


Robert B. Swierupski

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