The tariff classification and country of origin marking of air compressor housings from China

NY 801233 September 16, 1994 CLA-2-84:S:N:N3:102 801233 CATEGORY: Classification TARIFF NO.: 8414.90.4065 Ms. Midge A. Hand International Castings and Equipment, Inc. 600 Houze Way, Suite E-8 Roswell, GA 30076 RE: The tariff classification and country of origin marking of air compressor housings from China Dear Ms. Hand: In your letter dated August 12, 1994 you requested both a tariff classification and country of origin ruling. These housings comprise the outer casing for the compressor stage of a large, industrial, reciprocating, natural gas driven air compressor assembly. This assembly consists of the compressor, a gas powered motor, and various control units, mounted on a permanent base. Your letter states that you will be importing the housing for sale to one customer who is fully aware of the country of origin. You also state that all shipping crates and documentation are clearly marked with the country of origin. The applicable subheading for the compressor housings will be 8414.90.4065, Harmonized Tariff Schedule of the United States (HTS), which provides for other parts of compressors, other; compressor housings. The rate of duty will be 3.4 percent ad valorem. 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 air compressor housings are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported housings 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 Section 177 of the Customs Regulations (19 C.F.R. 177). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, Jean F. Maguire Area Director New York Seaport