MAR-02 RR:TC:SM 559760 AT

John B. Pellegrini, Esq.
Ross & Hardies
Park Avenue Tower
65 East 55th Street
New York, New York 10022-3219

RE: Country of origin marking of bandannas and handkerchiefs produced in the U.S. from foreign origin greige fabric; Section 334 Uruguay Round Agreements Act; 19 CFR 134.46

Dear Mr. Pellegrini:

This is in regard to your letter dated February 21, 1996, on behalf of Paris Accessories, Inc. ("Paris Accessories"), concerning the correct country of origin marking of handkerchiefs and bandannas.

You state that the handkerchiefs and bandannas will be produced in the U.S. from foreign origin greige fabric. According to your submission, the following U.S. processing operations apply to the bandannas. After the greige fabric is imported, its is bleached, dyed and printed and may undergo one or more finishing operations. Then the fabric is cut and sewn, converting it to bandannas. You state that the U.S. operations necessary to produce the handkerchiefs are somewhat different. After the greige fabric is imported, it is bleached and only occasionally dyed or printed. Then the fabric is cut and stitched on three or four sides. Fabric which has a selvage is cut and sewn on three sides. The selvage is left as is. Fabric which has no selvage is cut and stitched on four sides.

You state that pursuant to section 334 of the Uruguay Round Agreements Act ("URAA") and section 102.21, Customs Regulations (19 CFR 102.21), the country of origin of the finished bandannas and handkerchiefs which are processed in the U.S. from foreign origin greige fabric, as described above, is the foreign country where the greige fabric was made. You have requested whether the following proposed markings, listed below, would be acceptable country of origin markings for the finished bandannas and handkerchiefs in the context of the rules of origin for textile and apparel products set forth in Section 334 of the URAA, which became effective July 1, 1996.

The proposed country of origin markings are as follows:

1. Manufactured in USA from Fabric Made in ;

2. Cut and Sewn in USA/Fabric from ;

3. Fabricated in USA/Fabric from ;

4. Fabric Made in /Finished in USA; and

4. Fabric Made in /Manufactured in USA.

ISSUE:

Whether the proposed markings are acceptable country of origin markings for the finished bandannas and handkerchiefs which are processed in the U.S. from foreign origin greige fabric in the manner described above.

LAW AND ANALYSIS:

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. 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 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. Freidlaender & Co. Inc. 27 CCPA 297, 302, C.A.D. 104 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements country of origin marking requirements and exceptions of 19 U.S.C. 1304. As cited above, the marking statute specifically states that "every article of foreign origin (or its container) imported into the U.S. ... shall be marked ... in such a manner as to indicate to the ultimate purchaser in the U.S. ... the country of origin of the article." (Emphasis added). In this case, the article imported into the U.S. is the foreign-origin greige fabric. In order to determine whether the imported foreign-origin greige fabric, after it has been used to make bandannas and handkerchiefs, remains an article of foreign origin for purposes of the marking requirements under 19 U.S.C. 1304, Customs must apply the statutory rules of origin set forth in section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), which became effective July 1, 1996. Thus, Customs regulations set forth in paragraph (c)(1) through (5) of section 102.21, which implement section 334 also will be used to determine the country of origin for marking purposes. See 60 FR 46188 (September 5, 1995).

In HQ 559625 dated January 19, 1996, the marking of down comforters produced in the U.S. from imported Chinese origin comforter shells was considered. Without reiterating the law and rationale applied in HQ 559625, it was held that since section 334 applies "for purposes of the customs laws" and 19 U.S.C. 1304 is a Customs law, section 334 must be applied to determine the country of origin of the down comforters finished in the U.S. for purposes of 19 U.S.C. 1304. Since you indicate that, pursuant to Section 334 of the URAA and 19 CFR 102.21, the country of origin of the finished bandannas and handkerchiefs is the country where the imported greige fabric is made by a fabric-making process, then pursuant to 19 U.S.C. 1304 we find that the imported foreign-origin greige fabric remains foreign when further processed into bandannas and handkerchiefs in the U.S. in the manner described above.

Section 134.46, Customs Regulations (19 CFR 134.46), requires that when any city or locality in the U.S. or the name of any foreign country or locality which is not the country of origin appears on the imported article or its container the name of the country of origin shall appear legibly, permanently, in close proximity, and in at least comparable size, preceded by the additional words "Made in," "Product of," or other words of similar meaning. The purpose of this section is to prevent the possibility of misleading or deceiving the ultimate purchaser. Accordingly, since the greige fabric's country of origin remains foreign, for purposes of 19 U.S.C. 1304, the article which reaches the ultimate purchaser must indicate that the fabric is a product of a foreign country. Thus, we find that the finished bandannas and handkerchiefs may not be marked with the proposed markings "Cut and Sewn in USA/Fabric From " or "Fabricated in USA/Fabric from ," as these markings would not comply with 19 CFR 134.46.

If Paris Accessories wishes to make reference on the fabric to a locality which is not its country of origin, the name of the foreign country of origin must be preceded by "Made in," "Product of," or words of similar meaning pursuant to 19 CFR 134.46. However, to the extent that Paris Accessories wishes to use any added references on the finished bandannas and handkerchiefs, which include a "Made in USA" claim, such as the proposed markings "Manufactured in USA from Fabric Made in " or "Fabric Made in /Manufactured in USA", this is a matter within the jurisdiction of the FTC.

In regard to the marking "Fabric Made in /Finished in USA", we find that the requirements of 19 CFR 134.46 are satisfied. Since the country of origin of the fabric will be preceded by "Made in," and the marking will indicate to the ultimate purchaser that the article imported into the U.S. is of foreign origin, we find that the marking "Fabric Made in /Finished in USA" on the finished bandannas and handkerchiefs will be an acceptable country of origin marking for the finished bandannas and handkerchiefs under 19 U.S.C. 1304.

HOLDING:

Based upon the information submitted and pursuant to section 334 of the URAA and 19 CFR 102.21, we find that the country of origin of the imported foreign origin greige fabric remains foreign after being processed into finished bandannas and handkerchiefs in the U.S. in the manner described above. Accordingly, the proposed marking "Fabric Made in /Finished in USA" is an acceptable country of origin marking for the finished bandannas and handkerchiefs under 19 U.S.C. 1304. However, the proposed markings "Cut and Sewn in USA/Fabric from " and "Fabricated in USA/Fabric from " are not acceptable country of origin markings for Customs purposes as they do not satisfy the requirements of 19 CFR 134.46.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 177.9(b)(1), Customs Regulations {19 CFR 177.9(b)(1)}. This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2).

A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John Durant, Director
Tariff Classification Appeals Division