The tariff classification of hydraulic cylinders and parts from China

NY R01119 December 16, 2004 CLA-2-84:RR:NC:1:102 R01119 CATEGORY: Classification TARIFF NO.: 8412. 21.0075, 8412. 90.9005 Mr. Douglas Mark Carter Swanson Industries 2608 Smithtown Road Morgantown, WV 26508 RE: The tariff classification of hydraulic cylinders and parts from China Dear Mr. Carter: In your letter dated November 8, 2004 you requested a tariff classification ruling on behalf of Swanson Industries and inquire about country of origin marking requirements for certain imported components. Descriptive information and technical drawings were submitted. The articles in question are described as two similar hydraulic cylinders, which are identified as cylinder number 0127 and cylinder number 1503. You indicate that cylinder number 0127 will be imported as a finished product, assembled and painted, and that it is intended for use as a hydraulically operated linear actuator for light duty construction and agricultural equipment. Cylinder number 1503 will be imported as components, which be assembled into to a complete cylinder intended for use as a hydraulic linear actuator in a pleasure boat lift/docking system. The imported components for cylinder number 1503 include a cylinder, rod assembly, cylinder bottom, gland, piston and pivot tube. The imported components will be assembled with domestic components in the United States and the completed cylinder will then be painted. The applicable subheading for the completed cylinder, number 0127, will be 8412. 21.0075, Harmonized Tariff Schedule of the United States (HTSUS), which provides for hydraulic power engines and motors, other linear acting cylinders. The rate of duty is free. The applicable subheading for the imported components for use in the assembly of cylinder number 1503, i.e., the cylinder, rod assembly, cylinder bottom, gland, piston and pivot tube, will be 8412. 90.9005, HTSUS, which provides for parts of linear acting hydraulic power engines and motors. The rate of duty is free. In your request you also inquire about the required country of origin marking for the imported components that are assembled by Swanson in the United States. 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 USC 1304. 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 the manufacturer subjects the imported article to a process which results in a substantial transformation of the article. 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. Pursuant 19 CFR 134.35, in such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked.  Based on the information provided we find that the subject components are substantially transformed into articles with a new name, character or use, when incorporated with other components to produce finished hydraulic cylinders. Further, you state that Swanson has no intentions to market or sell the imported components separately. Accordingly, Swanson is the ultimate purchaser of the imported components. In accordance with 19 CFR 134.35, the subject components, provided that they are used by Swanson in the assembly of completed cylinders and not sold separately in their condition as imported, are excepted from individual marking and only the outermost containers of the imported articles must be marked with country of origin. With respect to your inquiry as to the markings for the completed cylinders that are assembled in the United States, please note that our regulations govern only the marking of imported merchandise. We suggest you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, NW, Washington, D.C. 20508, which has jurisdiction over the marking of products that are made in the U.S.A. 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 Kenneth T. Brock at 646-733-3009. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division