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NY N024072

March 27, 2008

MAR-2 OT:RR:NC:1:104


Ms. Roxane Peiffer
Norman G. Jensen, Inc.
3050 Metro Drive, Suite 300
Minneapolis, MN 55425-1545


Dear Ms. Peiffer:

This is in response to your letter dated February 27, 2008 on behalf of Red Devil Equipment Co. requesting a ruling on whether imported back panels are required to be individually marked with the country of origin if they are later to be processed in the U.S. by the U.S. manufacturer. While marked samples of the packaging of the back panels were not submitted, one picture showing packaging marked “Made in Taiwan” was submitted with your letter for review. You indicate that when manufactured in China, the packaging will show “Made in China”. The back panels themselves bear no markings.

The articles in question are back panels for the Model 1015 and the Model 5990 paint mixing machines. The back panels are made in China or Taiwan as follows: Model Numbers For Machine Country of Origin 9783438 5990 Taiwan
9784552 1015 China
9784530 1015 China

No machining, degreasing, cleaning, painting or drying is done to the panels in the U.S. nor is there any change to the final shape of the panels that are made/formed in either China or Taiwan. Only typical incoming quality inspection is performed. The panels are placed directly onto the Red Devil paint mixer/shaker products with screws. The assembly of the back panels with other parts results in a new and different article of commerce, i.e., a paint mixer/shaker product. The back panels are not interchangeable among different Red Devil product lines.

Once assembled, the paint mixer/shaker products are packaged and shipped as complete units. Individual panels are not repackaged, resold or shipped by themselves. Back panels are not kept in stock for use as replacement or spare parts. Each imported panel is used in the production of a paint mixing machine.

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 back panels are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported back panels and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the appropriate country of origin, “Made in China” or “Made in Taiwan".

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 Patricia O’Donnell at 646-733-3011.


Robert B. Swierupski

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