NY C80391

October 14, 1997

MAR-2-95:RR:NC:2:224 C80391

CATEGORY: Marking

Annette M. McCormack

Meijer, Inc.

2929 Walker Ave. N.W.

Grand Rapids, MI 49544

RE: Country of origin marking of golf components.

Dear Ms. McCormack:

This is in response to your letter dated September 30, 1997, in which
you requested a ruling on the country of origin and marking of various
combinations of components imported from China and assembled in the
United States to make golf club sets.

You state that in one case you are importing golf heads, graphite shafts
and grips and assembling and packaging these components in the U.S. The
finished article is described as the War Eagle 11 pc - All Graphite Set,
Code #874630. In a second instance, wood and iron heads and grips are
imported from China and assembled or processed in the U.S with a U.S
origin club shaft. This article is described as the Classic 7 pc Golf
Set, Code #880168. Finally, you intend to import heads and grips and
combine them with shafts and a golf bag of U.S. origin, creating a set
of four clubs and a golf bag, describing this set as a Jr. Classic Golf
Set, Code #874017. In each case, the assembly process includes cutting
the shaft, reaming the head, epoxing the head to the shaft, adding the
ferrule and packaging the sets for sale at retail.

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 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 the 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. See 19 CFR 134.35(a). In such circumstances, if the
manufacturer or processor in the U.S. substantially transforms (converts
or combines)the imported article into a different article, the
manufacturer or processor will be considered the ultimate purchaser and
the article shall be excepted from marking. However, the outermost
container of the imported articles are required to be marked with their
country of origin.

Here, in the case of the Classic 7 pc Golf Set, Code #880168, and the
Jr. Classic Golf Set, Code #874017, the issue is whether the assembly of
golf clubs from foreign-manufactured club heads and grips effects a
substantial transformation, such that your company is the ultimate
purchaser of the heads and grips thereby excepting them from country of
origin marking. Customs has previously addressed these circumstances in
several rulings and decided in the affirmative. In ORR 824-70 (August
24, 1970), we ruled that a manufacturer who purchased imported golf club
heads, whether finished or unfinished, and assembled them with shafts
and grips of U.S. origin into finished golf clubs, was the ultimate
purchaser of the imported heads. Provided Customs officials are
satisfied that the imported heads and grips will be used by an original
equipment manufacturer, they may be excepted from individual country of
origin marking. To the same effect were Customs Headquarters (HQ) ruling
letter 733151 dated September 11, 1990, HQ 734136 dated June 17, 1991,
and HQ 735192 of June 8, 1994, wherein Customs concluded that imported
golf club heads which were used to produce finished golf clubs in the
U.S. using U.S.-origin shafts were excepted from the country of origin
marking requirements since the golf club heads were substantially
transformed in the U.S by the golf club manufacturer.

A different conclusion was reached in HQ 734256 dated July 1, 1992,
where both of the major components of the club, i.e., the head and the
shaft, were of foreign origin, as is the case involving your Code
#874630, War Eagle 11 pc-All Graphite Golf Set. In HQ 734256, Customs
stated that since the most important components were foreign and the
assembly process was very simple

there was no substantial transformation of the shafts and heads.

Consistent with these rulings, we find that the War Eagle Set, Code
#874630, assembled in the U.S. using foreign made heads and shafts (and
grips), is subject to the country of origin marking requirements since
there is no substantial transformation of the imported components in the
U.S. An acceptable marking to indicate China as the country of origin
would be, for example, \"components made in China, assembled in the
U.S.\"

In the case of the Classic 7 pc Golf Set, Code #880168, and the Jr.
Classic Golf Set, Code #874017, the addition of a major U.S. component,
the shaft, in the U.S. and possibly a minor foreign component, the grip,
to produce the completed Classic golf clubs effects a substantial
transformation of the imported head (and grip). Therefore, your company
is the ultimate purchaser of the golf club heads (and grips), and
pursuant to 19 CFR 134.35 only the outermost containers of the imported
heads (and grips) must be marked to indicate their country of origin.
The finished golf club is not required to be marked to indicate the
origin of the head (or grip). Marking the outermost container in which
the heads (and grips) are imported and in which they reach your company
would suffice to indicate their country of origin to the ultimate
purchaser as provided at 19 CFR 134.32(d).

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 Tom McKenna at 212-466-5475.

Sincerely,

Robert Swierupski

Director

National Commodity

Specialist Division