COUNTRY OF ORIGIN MARKING OF IMPORTED TAPERED ROLLER BEARING CUP AND CONE ASSEMBLIES FROM CHINA

N219924 June 29, 2012 MAR-2 OT:RR:NC:N1:102 CATEGORY: MARKING Mr. Mark S. Zolno Katten Muchin Rosenman LLP 525 W. Monroe Street Chicago, IL 60661-3693 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED TAPERED ROLLER BEARING CUP AND CONE ASSEMBLIES FROM CHINA Dear Mr. Zolno: This is in response to your letter dated May 31, 2012 requesting a ruling on behalf of your client, General Bearing Corporation, hereinafter “General Bearing”, on the proposed marking for tapered roller bearing cup and cone assemblies which are repackaged in the U.S. after importation from China. In your request, you indicate that General Bearing imports tapered roller bearing (“TRB”) cup and cone assemblies in bulk containers from China and sells them to Consolidated METCO, Inc., an original equipment manufacturer (“OEM”). The TRBs will be packaged “loose” or in bulk polybags in outer shipping cartons. The outer shipping cartons are marked “Made in China” to indicate the country of origin of the enclosed TRBs. After importation, General Bearing will repack the TRBs into reusable plastic bulk containers that will be labeled with the country of origin and then shipped to their ultimate purchaser, Consolidated METCO, Inc. A copy of the proposed marking label was included for review. You also indicate that the subject TRBs are not a “resale” item and that Consolidated METCO, Inc. uses the bearings to produce vehicle components such as wheel hub assemblies and truck drive axles which are then sold to their customers. Included with your submission was a letter from Consolidated METCO, Inc., acknowledging that the TRBs purchased from General Bearing are of Chinese origin and that they will be used in the manufacture of vehicle components and are not intended for resale. 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. Based on the information made available, we agree that Consolidated METCO, Inc. is the ultimate purchaser of the imported bearings. Pursuant to 19 CFR 134.32(d), an exception from individual marking is applicable where the marking of a container of such article will reasonably indicate the origin of the article. This exception is normally applied in cases where the article is imported in a properly marked container and Customs officials at the port of entry are satisfied that the ultimate purchaser will receive it in the original unopened marked container. Relevant factors regarding whether an article is likely to remain in its original container include the chain of distribution, the type of container and the nature of the article. When neither the imported article nor its container is properly marked, and the container in which an article is to be repackaged after release from Customs custody will be marked with the article’s proper country of origin, the provisions of 19 CFR 134.34 should be used. However, the procedures of 19 CFR 134.26 may be applied to articles properly marked at the time of importation that will be repackaged in retail containers after their release from Customs custody. Based on the facts submitted in this case, the outermost containers of the imported TRBs are properly marked at the time of importation and the separate procedures of 19 CFR 134.34 would not apply. Since the TRBs will be repackaged by affixing a label to reusable plastic containers in which they will be sold to the ultimate purchaser, the requirements of 19 CFR 134.26 would apply. Section 134.26(a) of the Customs Regulations (19 CFR 134.26(a)), provides that if an imported article subject to these requirements is intended to be repacked in retail containers after its release from Customs custody, or if the port director having custody of the article, has reason to believe that such article will be repacked after its release, the importer shall certify to the port director that: (1) If the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new container shall be marked to indicate the country of origin of the article in accordance with the requirements of this part; or (2) if the article is intended to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or transferee, in writing, at the time of sale or transfer, that any repacking of the article must conform to these requirements. The certificate of marking to be provided by the importer to Customs is set forth at 19 CFR 134.26(a). It may be submitted in blanket form to cover all importations of a particular product for a given period, but the certificate must be filed at each port where the article(s) is entered. The notice that shall be given to the subsequent purchaser or repacker is set forth at 19 CFR 134.26(d). Customs ruled in Headquarter Ruling Letter HQ 560383 dated August 15, 1997, that imported automobile parts could be excepted from individual marking pursuant to 19 CFR 134.26(d), if the outer containers were properly marked with the part’s country of origin, and the port was satisfied that the ultimate purchasers would receive the parts in properly marked containers. In this case the outermost container in which the TRBs are imported will be marked, and the TRBs will also be supplied to the manufacturer of vehicle components. Therefore, provided General Bearing supplies the TRBs to an OEM and complies with the requirements as indicated in 19 CFR 134.26, the TRBs may be excepted from individual country of origin marking under 19 CFR 134.32(d). 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 Kenneth T. Brock at (646) 733-3009. Sincerely, Thomas J. Russo Director National Commodity Specialist Division