N237200 N2 Ruling Active

-submit your request and the additional information electronically.

Issued January 25, 2013 by U.S. Customs and Border Protection.

Tariff classification

HTS codes: 1930, 3010, 1940, 2013, 1304

Headings: 1930, 3010, 1940, 2013, 1304

Product description

-submit your request and the additional information electronically.

CBP rationale

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, please show how the imported items are substantially transformed as a result of the U.S. processing, and therefore how the U.S. manufacturer is the ultimate purchaser of the imported items and why these items are subject to 19 CFR 134.35, whereby only the containers which reach the ultimate purchaser are required to be marked with the country of origin. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177). If you decide to resubmit your request, please include all of the material that we have returned to you and mail your request to U.S.

Full text

N237200 January 25, 2013 CLA-2:OT:RR:NC:1:120 Mr. Philip Samuelson Iconik PC, LLC 602 Yellowstone Avenue Apartment D Belgrade, MT 59714 Dear Mr. Samuelson: We are returning your request for a ruling, dated January 9, 2013, and any related samples, exhibits, etc. We need additional information in order to issue a marking and classification ruling. Please submit the information described below: Provide the make, model and technical specifications of the item for which you are requesting classification. Does the item meet Note 5(A) to Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS), which defines automatic data processing (ADP) machines? (i) storing the processing program necessary for the execution of the program; (ii) being freely programmed in accordance with the requirements of the user; (iii) performing arithmetical computations specified by the user; and (iv) executing without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run Is there any type of software or hardware blocks that would prevent the end user from downloading any off-the-shelf compatible software or changing its operating system (OS)? What type of OS does it have? What type of central processing unit (CPU) does it have? What type of memory does it have? Does it have a typical basic input output system (BIOS) found in average computers that can connect any peripherals or are there limitations? What are the limitations for the end user to install or write programs to the computer? Does the device enable the end user to write programs that contain logic instructions? Is the computer able to perform spreadsheet or database functions? Is the item specifically programmed to do a function other than data processing? If so, what is that function? Does it have a dedicated use? Please explain. Provide descriptive literature and a detailed explanation on the use of the item(s). You also requested a ruling on whether imported computer parts are required to be individually marked with the country of origin if it is later to be processed in the U.S. by a U.S. manufacturer. Regarding your marking request, provide the following: A detailed list of the imported computer parts used to assemble an ADP machine in the U.S. Indicate the country from where each part is imported. Describe the function of each part used in the manufacture or assembly of the ADP machine in the U.S., and include model numbers and descriptive literature. When possible, provide the Tariff classification of each part imported. Provide step-by-step instructions of the assembly and integration operations conducted in the U.S. What is the skill level of each step? How many man hours does it take to complete each step? Fully explain how the components of the ADP machine aka computer are combined with non-originating parts to produce the final ADP machine. When adding these parts together, is there any change in name, tariff, character and use as a part of the ADP machine? Is the manufacturing or combining process merely a minor one which leaves the identity of the imported article intact? Provide descriptive literature and an exploded-view, labeled diagram of the ADP machine before and after U.S. assembly. Is any software or OS downloaded to the ADP machine in the U.S. assembly? If so, what type of software or OS is downloaded? Does the downloaded software program the machine to do a specific function other data processing? If so, explain that function in detail. Is the assembled ADP machine sold to U.S. buyers or to be exported? If exported, to where will it be exported? 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, please show how the imported items are substantially transformed as a result of the U.S. processing, and therefore how the U.S. manufacturer is the ultimate purchaser of the imported items and why these items are subject to 19 CFR 134.35, whereby only the containers which reach the ultimate purchaser are required to be marked with the country of origin. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177). If you decide to resubmit your request, please include all of the material that we have returned to you and mail your request to U.S. Customs and Border Protection, Customs Information Exchange, 10th Floor, One Penn Plaza, New York, NY 10119, attn: Binding Rulings Section. If your request was submitted electronically and the information required does not involve sending a sample, you can re-submit your request and the additional information electronically. If you have any questions regarding the above, contact National Import Specialist Denise Faingar at (646) 733-3010. Sincerely, Thomas J. Russo Director National Commodity Specialist Division

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