The country of origin marking of the Gotham G213 speaker system

N279171 September 26, 2016 MAR-2-85:OT:RR:NC:N4:109 CATEGORY: Marking Peter A. Quinter Gray Robinson Attorneys at Law 333 S.E. 2nd Avenue Suite 3200 Miami, Florida 33131 RE: The country of origin marking of the Gotham G213 speaker system Dear Mr. Quinter: In your letter, which was received by this office on September 7, 2016, you requested a ruling on behalf of your client, JL Audio, Inc., as to whether U.S. Country of Origin could be claimed for the Gotham G213 speaker system. You state that the components used in the assembly of the Gotham G213 speaker system are sourced from various foreign countries. Those components are imported into the United States then assembled into finished speakers. The assembly process, testing and quality control are all performed at JL Audio, Inc.’s Miramar, Florida facility. The Miramar facility is an approved foreign trade zone (FTZ). JL Audio imports numerous components from various foreign countries. They perform a complex assembly process, using those components, in the United States. The assembly process requires trained and experienced technicians. The process involves a significant amount of labor, technical expertise, and monetary investment within the United States. After assembly, each product undergoes a post-assembly inspection and testing process. A complete listing of the foreign components and their respective country of origin and tariff classification numbers was submitted with the request. Also submitted was a detailed explanation of the assembly, testing and quality control processes. Concerning the individual imported components, 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 assembly, testing and quality control of the Gotham G213 speaker system are performed in the U.S. These operations transform the imported foreign components into a product with a new name, character and use. Therefore, the U.S. manufacturer is the ultimate purchaser of the imported components and under 19 CFR 134.35, the imported articles would be excepted from the individual marking requirements of 19 U.S.C. 1304, provided that the containers in which the parts are imported are properly marked with the country of origin and the ultimate purchaser will receive them in the marked containers. Regarding your question as to whether JL Audio, Inc., may claim U. S. country of Origin for this item, based upon the above factors and the submitted literature, we find that the Gotham G213 speaker system has undergone an assembly/manufacturing process that substantially transforms the foreign components into a finished U.S. origin speaker system. Accordingly, the country of origin of the finished Gotham G213 speaker system, pursuant to section 19 CFR 134.1 of the Customs Regulations, is the United States. If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. 1304. However, please note that the Federal Trade Commission has jurisdiction concerning the use of the phrase “Made in the USA” and similar claims of U.S. origin. Whether an article, in this case, the G213 speaker system, may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under their authority. Inquiries should be directed to the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 regarding the propriety of marking indicating that the article is made in the U.S. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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 Steven Pollichino at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division