THE COUNTRY OF ORIGIN MARKING OF IMPORTED VINYL FLATS AND 3 RING BINDER MECHANISMS

N221555 July 6, 2012 MAR-2 OT:RR:NC:N2:234 CATEGORY: MARKING Ms. Wanda Hensley Avery Dennison Office and Consumer Products Company 50 Pointe Drive Brea, CA 92821 RE: THE COUNTRY OF ORIGIN MARKING OF IMPORTED VINYL FLATS AND 3 RING BINDER MECHANISMS Dear Ms. Hensley: This is in response to your letter dated June 12, 2012, requesting a ruling on the country of origin and marking requirements for vinyl flats and 3 ring binder mechanisms. Samples of a 3 inch vinyl flat with no binder mechanism and of a complete 1 inch vinyl binder with binder mechanism were submitted for review and are being returned. Both the vinyl flat and the complete binder are marked “Made in China” in contrasting print. The articles in question are described as a vinyl creased flat with a 1 to 3 inch spine and a metal 3 ring binder mechanism, both of which are made in China. These flats and binder mechanisms will be assembled in the United States to form a binder. The finished product will be sold in the United States. The assembly process in the United States includes punching holes in the vinyl flat by machine and combining the flat with the metal 3 ring binder mechanism to form a binder. You ask whether it is acceptable to mark the containers in which the flats and rings will be imported, rather than individually mark the flats and rings. You plan to mark the containers for the flats and rings “Made in China”. 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. The imported ring binder mechanisms will be substantially transformed as a result of the further processing, making the manufacturer of the binders the ultimate purchaser of the imported binder mechanisms. Under 19CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the county of origin. Marking the containers in which the binder mechanisms are imported to indicate “China” will meet the country of origin marking requirements. However, the processes performed in the United States do not result in a substantial transformation such that the binder cover loses its identity in the finished loose-leaf binder. The cover is an essentially complete component which is not physically altered when combined with the binder mechanism and remains visible in the complete product. The combining of the cover with the mechanism involves a simple riveting operation which does not involve a significant investment in time, complex machinery, or technical skill. The manufacturing process is a minor one which leaves the identity of the imported article intact. The imported vinyl flats are not substantially transformed as a result of the U.S. processing, and therefore the consumer who purchases the finished binder at retail is the ultimate purchaser of the imported vinyl flats or binder covers. Therefore, each cover is 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 Albert Gamble at (646) 733-3037. Sincerely, Thomas J. Russo Director National Commodity Specialist Division