HQ 733941

March 1, 1991

MAR 2-05 CO:R:C:V 733941 RSD

CATEGORY: Marking

Mr. Sergio Galindo

Import/Export Coordinator

Alcoa Fujikura Ltd.

121 Johnson Blvd.

Del Rio, Texas 78840

RE: Country of origin marking of automotive wire harnesses; car

parts, substantial transformation; 19 CFR 134.35

Dear Mr. Galindo:

This is in response to your letter dated November 13, 1990,

requesting a ruling on the country of origin marking requirements

of imported automotive wire harnesses used in the manufacture of

cars. A sample wire harness accompanied the ruling request.

FACTS:

Alcoa Fujikura Ltd. (AFL) imports automotive wire

harnesses, which are assembled in Mexico. The wire harnesses are

sold to Ford Motor Company in Dearborn, Michigan for the assembly

of motor vehicles. The wire harnesses will be part of the

electrical system of the motor vehicle, where they will be

connected to other parts of the vehicle, such as headlights, the

engine compartment, or under the dashboard of the vehicle. Once

installed into a motor vehicle, the harnesses will be concealed

so that a country of origin marking will not be visible. The

ruling request indicates that the containers for the wire

harnesses are marked \"Assembled in Mexico.\" A letter from the

Ford Motor Company was sent which states that the wire harnesses

are used by Ford in the \"original equipment manufacturer (OEM).\"

You state that AFL received several previous \"marking waivers\"

from the Customs Laredo District regarding these wire harnesses

but were denied a blanket waiver. You state further that Customs

officials from the Laredo District advised AFL to write to

headquarters to obtain a ruling on the country of origin marking

requirements for the harnesses. We contacted the import

specialist in the Laredo district who indicated that a so-called

\"blanket waiver\" was denied because the importer had failed to

provide Customs with a current list of the part numbers for the

wire harnesses.

ISSUE:

Do automotive wire harnesses used in the manufacture of

motor vehicles constitute a substantial transformation which

permits them to be excepted from being individually marked with

their country of origin?

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19

U.S.C. 1304), provides that, unless excepted, every article of

foreign origin imported into the U.S. shall be marked in a

conspicuous place as legibly, indelibly, and permanently as the

nature of the article (or 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.

Congressional intent in enacting 19 U.S.C. 1304 was that the

ultimate purchaser should be able to know by an inspection of the

marking on the imported goods the country of which the goods is

the product. \"The evident purpose is to mark the goods so that at

the time of purchase the ultimate purchaser may, by knowing where

the goods were produced, be able to buy or refuse to buy them, if

such marking should influence his will.\" United States v.

Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements

the country of origin marking requirements and exceptions of 19

U.S.C. 1304. Section 134.1(b), Customs Regulations (19 CFR

134.1(b)), defines \"country of origin\" as the country of

manufacture, production or growth of any article of foreign

origin entering the U.S. Further work or material added to an

article in another country must effect a substantial

transformation in order to render such other country the \"country

of origin\" within the meaning of the marking laws and

regulations. 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.

The standard for determining the ultimate purchaser of an

article used in manufacture is set forth in section 134.35,

Customs Regulations (19 CFR 134.35), which provides that the

manufacturer or processor who converts or combines the imported

article into an article having a name, character or use

differing from that of the imported article is considered the

ultimate purchaser. Under such circumstances, the imported

article is substantially transformed and the article itself need

not be individually marked. Only the outermost container in

which the article is imported must be marked.

In HQ 731076 (November 1, 1988), Customs ruled that

automobile components from Japan, Taiwan and the U.S. lose their

separate identities when they are incorporated into cars in the

manufacturing process and are therefore substantially

transformed. We stated that the manufacture of an automobile was

more than a mere assembly operation. In this case, there is a

statement from Ford Motor Company that the wire harnesses will be

used only as original equipment in the manufacture of motor

vehicles. Accordingly, when the wire harnesses are incorporated

into a new motor vehicle as part of the manufacturing process,

they lose their separate identity and become part of a new

article of commerce namely, a motor vehicle.

HOLDING:

Wire harnesses which are used by the Ford Motor Company in

the manufacture of new motor vehicles are substantially

transformed. In accordance 19 CFR 134.35, the Ford Motor

Company is the ultimate purchaser of wire harnesses, and they do

not have individually marked with their country of origin

provided the wire harnesses are imported in a container which is

marked to indicate the country origin, and the district director

at the port of entry is satisfied that they will be used only in

the manner set forth above and the Ford motor Company will

receive them in the marked package in which they are imported.

The district director may require the importer to submit whatever

information is deemed necessary in support of the marking

exception.

Sincerely,

John Durant, Director

Commercial Rulings Division