The tariff classification and country of origin marking of imported backing (mounting) discs from Great Britain

N194516 December 13, 2011 CLA-2-39:OT:RR:NC:N4:421 CATEGORY: Classification; Marking TARIFF NO: 3926.90.9980 Mr. William E. Cooke Line-Safety, LLC 1990 Main Street, Suite 750 Sarasota, FL 34236 RE: The tariff classification and country of origin marking of imported backing (mounting) discs from Great Britain Dear Mr. Cooke: This is in response to your letter dated November 25, 2011, requesting a ruling on whether imported polypropylene backing (mounting) discs are required to be individually marked with the country of origin if they are intended to be processed in the U.S. by a U.S. manufacturer. Photographs of the mounting discs were submitted with your letter. The article under consideration is a set of polypropylene discs manufactured in Great Britain. The set of discs is comprised of two halves which mate together at assembly. The discs measure 75 millimeters in diameter and 25 millimeters in depth. After importation the discs will be used to convert a United States manufactured propane coupling into a wall-mounted sealing stop-end. The discs are specifically designed as a component in the completed propane coupling assembly. After importation into the United States the discs are incorporated with other domestically produced parts, including a brass coupling, black plastic protective cap and stainless steel assembling bolt and washer. The blister packaging is also made in the U.S. You state that the cost of the mounting disc set comprises less than one twentieth of the total materials cost for the completed coupling. The applicable subheading for the backing (mounting) discs will be 3926.90.9980, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of plastics, other. The rate of duty will be 5.3 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. You have asked about the country of origin marking requirements for the backing (mounting) discs. 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 discs are substantially transformed as a result of the U.S. processing. The U.S. manufacturer is the ultimate purchaser of the imported discs and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin. Therefore, the discs may be excepted from individual marking provided that the packaging in which the discs will be imported is marked to indicate the country of origin of the discs, and the CBP officers at the port of entry are satisfied that the marked packages will reach the ultimate purchaser unopened. 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 Joan Mazzola at (646) 733-3023. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division