COUNTRY OF ORIGIN MARKING OF IMPORTED ELECTRIC MOTORS

N059820 May 20, 2009 MAR-2 OT:RR:E:NC:N1:112 CATEGORY: MARKING Mr. Trent Cameron Regal Beloit Corp. 200 State Street Beloit, WI 53511 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED ELECTRIC MOTORS Dear Mr. Cameron: This is in response to your letter dated May 6, 2009, requesting a ruling on whether imported electric motors 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 items concerned are two models of electric motors, # C218-179M and # C21-182M. Regal Beloit Corp. is the importer of record for these electric motors, which are manufactured in China. Both models of electric motor will be sold to a customer (Pentair Water) who combines them in the United States with other components to manufacture a finished water pump. Upon importation, the motors would be classified under heading 8501, HTSUS. They will lose their identity when they are manufactured into the finished water pump which would have a tariff classification under heading 8413, HTSUS. Within the ruling request is a letter from the U.S. manufacturer, which states that they are aware of the country of origin (China), that the motors in question will be further manufactured into a new and different product (water pump) and that the electric motors will not be sold or distributed as replacement parts. 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 electric motors (# C218-179M and # C21-182M) are substantially transformed as a result of the U.S. processing. Therefore, the U.S. manufacturer is the ultimate purchaser of the imported electric motors (# C218-179M and # C21-182M) 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 Steven M. Pollichino at (646) 733-3008. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division