COUNTRY OF ORIGIN MARKING OF IMPORTED TELEVISION COMPONENTS

N268754 October 8, 2015 MAR-2 OT:RR:NC:N1:108 CATEGORY: MARKING Mr. Philip S. Gallas Nelson Mullins Riley & Scarborough LLP Attorneys and Counselors at Law 101 Constitution Avenue, NW, Ste. 900 Washington, DC 20001 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED TELEVISION COMPONENTS Dear Mr. Gallas: This is in response to your letter dated September 9, 2015, on behalf of Element TV Company, LP (Element) requesting a ruling on whether imported television components are required to be individually marked with the country of origin if they are later to be processed by Element (the importer/manufacturer), and whether the importer/manufacturer would then be considered the ultimate purchaser of the merchandise. The imported components subject to this ruling request are the following: an LCD subassembly (containing an LCD panel, a power board, an inverter board, a front bezel, a stand base, speakers, a power board assembly and wire harnesses) classified under heading 9013, Harmonized Tariff Schedule of the United States (HTSUS); and a main board (containing a television tuner and audio/video components) classified under heading 8529, HTSUS. All of these components are manufactured in China and are imported into the United States separately in different shipments and at different times, as well as in different quantities, depending upon production. At the time of importation, the LCD subassembly and the main board are removed from their separate containers to be assembled together, with other minor components from China, by Element to produce an LED-backlit LCD television (with a video diagonal display ranging from 19 inches to 60 inches) at which point they lose their separate identity. The assembly process includes the above-stated essential components, which cannot function by themselves, and, as noted above, are not attached prior to importation. Hence, neither the LCD assembly nor the main board can function as a television upon importation into the United States. The finished television is provided for in subheading 8528.72, HTSUS. 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), Customs Regulations (19 CFR 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 the U.S. 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 in the U.S. 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 television components are substantially transformed when used in the manufacture of the completed television, and therefore, the importer/manufacturer (Element) is the ultimate purchaser of the imported television components pursuant to 19 CFR 134.35(a). Accordingly, the components are excepted from the individual marking requirements of 19 U.S.C. 1304, provided that the containers, in which the components are imported, are properly marked with the country of origin, e.g., “Made in China” or “Product of China,” in accordance with the above marking regulations. It should be noted that the port director at the port of entry must be satisfied that Element will receive these imported television components in their original unopened properly marked containers, used only as described in this ruling and not otherwise sold. 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 Lisa Cariello at [email protected]. Sincerely, Gwenn Klein Kirschner Director National Commodity Specialist Division