COUNTRY OF ORIGIN MARKING OF IMPORTED CAUTERY COMPONENTS

N213555 May 4, 2012 MAR-2 OT:RR:NC:N4:405 CATEGORY:  MARKING Brian K. Bohanek Materials Manager Bovie Medical Corporation 5115 Ulmerton Road Clearwater, FL 33760 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED CAUTERY COMPONENTS Dear Mr. Bohanek: This is in response to your letter dated April 12, 2012 requesting a ruling concerning the country of origin marking for cautery components which will later be processed in the U.S. by a U.S. manufacturer.  A marked sample was not submitted with your letter for review. You state: “all of the…material to be used in the manufacture of the High Temperature Cautery is manufactured in China. The only item having any assembly at the time of import is the battery pack, containing two batteries, a brass conductor strip and plastic shrink wrap…which is a sub assembly of the High Temperature Cautery. Once the product arrives at our facility we will store, kit, assemble, print our company name or OEM logo on the side of the unit, deplete the battery voltage, insert a wire tip (made and purchased in the USA) into the brass posts on the end of the unit and crimp, place the plastic cover cap on the end, package, label and send out for sterilization at our local sterilization subcontractor.” You indicate that there are eight imported components, counting the battery pack as one component.    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 cautery components are substantially transformed as a result of the U.S. processing, and therefore the U.S. manufacturer is the ultimate purchaser of the imported cautery components and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin “Made in China”. Your specific question is whether you whether you will be able to mark the finished product “Made in USA.”  The issue of whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin is under the authority of the Federal Trade Commission (FTC). We therefore suggest that you contact the Federal Trade Commission, Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 for further advice on the propriety of your proposed marking. 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 J. Sheridan at (646) 733-3012. Sincerely, Thomas J. Russo Director National Commodity Specialist Division