THE COUNTRY OF ORIGIN MARKING OF PRINTERS

N080118 November 4, 2009 MAR-2 OT:RR:NC:B1:106 CATEGORY: MARKING Ms. Gail Cumins Sharretts, Paley, Carter & Blauvelt, PC 75 Broad St. New York, NY 10004 RE: THE COUNTRY OF ORIGIN MARKING OF PRINTERS Dear Ms. Cumins: This is in response to your letter dated October 8, 2009 requesting a ruling on whether marking of the country of origin is required on printers assembled in the U.S, on behalf of your client, Carestream Health, Inc. The printers you refer to are the DryView model 5800 and 5850. You state in your submission that the printers undergo final assembly in the U.S. from seven subassemblies and over 350 additional parts. Five of these subassemblies; the imaging assembly, the film transport assembly, the pick-up assembly, the electronic bracket assembly and the frame assembly will be assembled in China. After importation, these subassemblies will be combined with the processor assembly and drum assembly that were assembled in the U.S. from both U.S. and foreign parts. The subassemblies undergo a substantial transformation as a result of the considerable assembly processes which take place in the U.S. Therefore, in accordance with 19 USC 2518 (4) (B) and 19 CFR 177.22 (a) (2) the correct country of origin of the completed printers model 5800 and 5850 will be the U.S. Concerning the imported subassemblies, 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. 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 the manufacturer subjects the imported article to a process which results in a substantial transformation of the article. 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. Pursuant to 19 CFR 134.35, in such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. Based on the information made available, we find that the foreign components used in the manufacture of the DryView model 5800 and 5850 are substantially transformed into articles with a new name, character or use, when incorporated with domestic components to produce finished printers and that CSH is the ultimate purchaser of such parts. In accordance with 19 CFR 134.35, the imported components, provided they are used by CSH in the manufacture of completed printers and not sold separately in their condition as imported, are excepted from individual marking and only the outermost containers of the imported articles must be marked with country of origin provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser. Further, in regards to the completed printers, if a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 USC 1304. Whether an article may be marked with the phrase “Made in USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). Therefore, we suggest that you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508, as to whether the proposed marking satisfies such requirements. 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 Mark Palasek at (646) 733-3013. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division