MAR-2-05 RR:TC:SM 559872 KBR

David R. Stepp
White & Case
601 13th St., N.W.
Washington, D.C. 20005

RE: County of origin marking of smoke alarms entered for storage and subsequent exportation to Australia; 19 CFR 134.32(j); 19 CFR 134.22(c); United States v. Friedlaender & Co., 27 C.C.P.A. 297, C.A.D. 104 (1940); HQ 732851 (January 26, 1990).

Dear Mr. Stepp:

This is in response to your letter dated May 24, 1996, on behalf of BRK Brands, Inc., requesting a country of origin marking ruling regarding smoke alarms entered into the United States for temporary storage and subsequent exportation to Australia. You included a photocopy of the blister pack container for the smoke alarm for our review.

FACTS:

BRK Brands, Inc., imports the "Family Gard Smoke Alarm" from Mexico into the U.S. You state that the smoke alarm is not sold in the U.S. All the smoke alarms are meant for sale in Australia. The smoke alarms are only stored in the U.S. and broken down into smaller shipments for export to Australia to fill purchase orders. The smoke alarm is packaged in a blister pack. The front of the blister pack is marked with a box containing a design and stating "Australian Standard" and also inside the box is printed a license number and "Standards Australia". You state that this symbol indicates that the smoke alarm meets all of the Australian government product standards. The back of the blister pack states "Made in Mexico" and immediately below that reference is the Australian address of "Family Gard" - - the Australian distributer of the smoke alarm. Additionally, the blister pack bears no reference to any name and address of an importer, distributor, or other person or company in the United States.

You state that for previous shipments, Customs in El Paso believed that the marking on the front of the blister pack violated Customs regulations (19 CFR 134.46)and, as a result, your client has been entering the smoke alarms into a foreign trade zone and filing a transportation and exportation entry for immediate exportation to Australia. For future shipments, you wish to store the smoke alarms in an unbonded warehouse pending exportation to Australia to fill future orders. You state that BRK Brands, Inc., is willing to file a certificate stating that the smoke alarms will not be sold at retail in the U.S.

ISSUE:

Whether smoke alarms and their container originating in Mexico and entered into the U.S. for storage and subsequent exportation to Australia, are excepted from the country of origin marking requirements of section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304).

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 United States 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 United States the English name of the country of origin of the article. By enacting 19 U.S.C. 1304, Congress intended to ensure that the ultimate purchaser would be able to know by inspecting 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, 302 C.A.D. 104 (1940). Part 134, Customs Regulations (19 CFR 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

The ultimate purchaser is defined in section 134.1(d), Customs Regulations (19 CFR 134.1(d)), as the last person in the U.S. to receive the article in the form in which it was imported. Section 134.32, Customs Regulations (19 CFR 134.32) sets forth some of the general exceptions to marking requirements. Section 134.32(d), Customs Regulations (19 CFR 134.32(d)) excepts from individual marking requirements any article for which the marking of the container will reasonably indicate to the ultimate purchaser the origin of the article.

Section 134.46, Customs Regulations (19 CFR 134.46), requires that when the name of any city or locality in the U.S., or the name of any foreign country or locality other than the name of the country or locality in which the article was manufactured or produced, appears on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," "Product of," or other words of similar meaning. Customs has ruled that in order to satisfy the close proximity requirement, the country of origin marking must appear on the same side(s) or surface(s) in which the name of the locality other than the country of origin appears. HQ 708994 (April 24, 1978). The purpose of 19 CFR 134.46 is to prevent the possibility of misleading or deceiving the ultimate purchaser as to the origin of the imported article.

In HQ 732851 (January 26, 1990), Customs held that when an imported product is to be exported, only the ultimate purchaser in the U.S. of the imported article must be informed of the country of origin of the product. Customs found that as long as the importer certified to Customs that the articles would be exported, and the importer receives the article in a properly marked container, the individual articles need not be marked with their country of origin. See also, HQ 734409 (September 25, 1989).

BRK Brands, Inc., currently enters the merchandise in question with no intention of entering the smoke alarms into the commerce of the United States. The sole purpose in entering the goods from Mexico is to store and export them in smaller shipments to Australia. Thus, in accordance with the exception to marking provided for in part 134.32(d), Customs Regulations (19 CFR 134.32(d)) , and HQ 732851, Customs finds that as long as BRK Brands, Inc., receives the goods in bulk containers which are properly marked with their country of origin, the goods are excepted from the marking requirements of Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304). We also find that the reference to "Australian Standard" on the front of the smoke alarms' blister pack does not trigger the special marking requirements of 19 CFR 134.46 because that reference will not mislead BRK Brands, Inc., as to the smoke alarms' origin. BRK Brands, Inc., must file an appropriate certification with the port director at the time of importation stating that the smoke alarms are for export only and will not be sold in the U.S.

HOLDING:

The Mexican smoke alarms' imported by BRK Brands, Inc., for exportation to Australia, are excepted from the marking requirements of Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provided the outermost container in which the smoke alarms are received by BRK Brands, Inc., are properly marked with the smoke alarms' country of origin and BRK Brands, Inc., files a certification with the port director that the smoke alarms are for export only and will not be sold in the U.S. goods.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is 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