MAR-05 RR:TC:SM KKV

Jack D. Mlawski
Galvin & Mlawski
440 Park Avenue South
New York, New York 10016-8067

Re: Country of origin marking requirements applicable to automotive compact disc changers from Singapore; plastic magazine; FM modulator; remote control; connecting cables; mounting brackets; screws; multiple countries of origin; imported in sealed container; HRL 734491; HRL 734544; HRL 559245; HRL 734101; HRL 734363; minor function and value not found

Dear Mr. Mlawski:

This is response to your letter dated May 15, 1997 (and subsequent facsimile dated March 12, 1998), on behalf of US JVC Corporation ("JVC"), which requests a binding ruling regarding the country of origin marking requirements applicable to certain compact disc (CD) changers from Singapore. Photographs of the CD changer and other components were submitted for our consideration.

FACTS:

The merchandise at issue consists of an automobile CD automatic changer and accompanying components. The CD changer, which is made in Singapore, permits the occupants of a vehicle to listen to compact discs through the automobile's radio and audio system and allow the user, by remote control, to access up to twelve CDS. The CDS are loaded into a plastic magazine, of Japanese origin, which is loaded into the CD changer which has been installed in the trunk of the vehicle. In addition to the changer unit, remote control, which is a product of Malaysia, and plastic magazine, the system may also include a frequency modulator of Chinese origin which is installed in the cab of the vehicle under the seat, and functions as an interface between the radio/audio system of the vehicle and the CD changer unit. Additionally, a CD controller/display unit, a product of Taiwan, is installed in the dashboard of the vehicle to indicate to the listener the number of music tracks and operation being performed. Lastly, you indicate that the carton may also contain mounting brackets, screws and cables for which the country of origin has not been provided.

We are informed that each of the components is separately marked with its respective country of origin and imported in a single carton sealed by the manufacturer. You indicate that the product is sold by retailers who display the article and permit its operation by potential purchasers who wish to compare its audio quality with other models. Additionally, you indicate that, in some instances, the consumer may request that the retailer open the packaged product at the time of purchase to ensure that all components of the system have been included in the box. You ask whether the imported container may be marked solely with the country of origin of the CD changer unit, "Made in Singapore" or, in the alternative, with the marking, "CD Changer Made in Singapore, Additional Components Individually Marked with Specific Country of Origin." In a facsimile dated March 12, 1998, you amended your original request to include a third proposed marking, "Components Made in _____, _____, and _____"

ISSUE:

Whether the proposed markings, "Made in Singapore," "CD Changer Made in Singapore, Additional Components Individually Marked with Specific Country of Origin" or "Components Made in _____, _____, and _____" on the outside of a sealed carton containing a variety of components with different countries of origin satisfy the country of origin marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134.

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. 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, 302 (1940).

Part 134 of the Customs Regulations implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), mandates that the ultimate purchaser in the United States must be able to find the marking easily and read it without strain. That section further provides that the degree of permanence should be at least sufficient to insure that in any reasonably foreseeable circumstance the marking shall remain on the article until it reaches the ultimate purchaser unless it is deliberately removed. Under 19 CFR 134.24(d)(2), articles which are sold in sealed containers which are normally unopened by the ultimate purchaser before purchase must be marked to indicate the country of origin of its contents.

Under certain circumstances, Customs previously has allowed importers to place a marking on the exterior container instructing the ultimate purchaser to view the actual article to determine its country of origin. In Headquarters Ruling Letter (HRL) 734491, dated April 12, 1992, Customs ruled that an importer of automobile parts may mark the packaging "Contents Imported, See Article for Country of Origin." In HRL 734544, dated July 24, 1992, Customs permitted an importer to mark the cartons not only with the possible countries of origin, but also with the instruction to inspect the item itself for the actual country of origin. In HRL 559245, dated December 13, 1995, Customs ruled that the importer of a knife set may mark the packaging, "Cutlery and block are imported as marked on the product." However, in order to qualify for this type of marking, Customs held, in each instance, that the carton must be unsealed, so as to permit the purchaser to inspect the product prior to purchase. Under the facts before us, however, the carton is not imported in an unsealed condition, but has been sealed by the manufacturer prior to shipment. Although you indicate that the unit may (or may not) be displayed in a retail setting, and that the carton may (or may not) be opened by the retailer at the request of the consumer, such circumstances do not ensure compliance with the marking requirements, as the ability of the ultimate purchaser to ascertain the country of origin is dependent not upon the language, placement, method and size of the marking itself, as set forth by 19 CFR 1304, but may rest upon the actions of a third party.

In support of your position regarding the acceptability of the first two proposed markings, you cite HRL 734363, dated February 18, 1992, in which Customs considered the marking of a box containing a U.S. origin modem and foreign origin transformer and telephone cables. Customs determined that the cable and transformer were only minor pieces of the modem set both in function and in value. The function of the two imported items was minimal as they served only to plug the modem into the wall socket and to connect the modem to the telephone wall jack. Likewise, the value of the two articles was minimal as well, as together they represented only 3% of the value of the product. Customs concluded that the two articles had an insignificant effect on the purchasing decision and held that the proposed marking "Modem Made in USA, Transformer and Telephone Cable of Foreign Origin are Individually Marked with Specific Country of Origin" was permissible, notwithstanding the fact that the ultimate purchaser would not see the markings prior to purchase because the product was shrink wrapped.

Unlike the situation presented in HRL 734363, supra, the function of the components accompanying the CD Changer is far greater than a mere connection to a power source. The plastic magazine serves to organize and store material in a manner which permits selective retrieval. The remote control permits the operation of the CD Changer from a location distant from the Changer unit. The frequency modulator facilitates electronic communication between two separate systems located in two different locations, i.e., the vehicle radio/audio system in the cab of the vehicle and the CD Changer located in the trunk of the vehicle. The controller/display unit serves as an informational relay of operations, in visual format, which permits the user to ascertain current unit function. As such, the components are an integral part of the total unit, for without them the subject CD Changer would not function in its intended capacity, i.e., as a means of automatically selecting, playing and changing a wide variety of compact discs while in an automobile. Only the cables, which serve as a conduit for current between the units and the mounting brackets and screws, which retain the placement of the various components in a secure fashion to prevent damage, would appear to be minor in function, in keeping with the discussion in HRL 734363, supra.

In addition to having minor function, the foreign transformer and telephone cables in HRL 734363, supra, were also minor in value, together comprising only three percent of the total value of the article. In the case before us, however, no information of any kind has been submitted with regard to any of the subject components which would permit us to determine that a given component was minor in value. Based upon the information presented, it has not been demonstrated that any of the components imported with the subject CD changer are so minor in function and value that they would have an insignificant effect on the purchasing decision of the imported article. Accordingly, the proposed markings "Made in Singapore" or "CD Changer Made in Singapore, Additional Components Individually Marked with Specific Country of Origin" are not acceptable, as the requirements of 19 U.S.C. 1304 and 19 CFR Part 134 are not met.

Your facsimile dated March 12, 1998, amended your original ruling request to include a third proposed marking, "Components Made in _____, _____, and _____" with the blanks indicating the country of origin of each of the various components in the sealed container. In HRL 557796, dated June 3, 1994, Customs considered the country of origin marking for Christmas tree light sets assembled in Macau from imported components. In the absence of a substantial transformation of the components into a new and different article in a single country, Customs determined that the components must each be marked with their respective countries of origin, and held that a central origin label with the marking "Components Made in Taiwan, Macau and Korea" or "Bulbs - Macau; Control Box - Korea; other components - Taiwan" satisfied the requirements of 19 U.S.C. 1304. Similarly, in HRL 734101, dated July 9, 1991, Customs allowed toys sold inside plastic eggs in a vending machine to be individually marked with the actual country of origin but, because this information was not visible, Customs permitted the machine to be marked "The Toys Contained In This Machine Are Marked With The Country of Origin, And May Be Made In One Or More Of The Following Countries: Hong Kong Taiwan China."

Therefore, where the CD changer and accompanying components, which are marked with their respective countries of origin, are imported into the U.S. in a sealed carton, the marking "Components Made in _____, _____ and _____" printed conspicuously on the carton or on a central origin label permanently affixed to the carton in a conspicuous location is acceptable, as it satisfies the requirements of 19 U.S.C. 1304 and 19 CFR Part 134.

HOLDING:

Where a CD changer is imported into the U.S. in a sealed container, together with other components with different countries of origin, the proposed markings, "Made in Singapore" or "CD Changer Made in Singapore, Additional Components Individually Marked with Specific Country of Origin" do not satisfy the country of origin marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. However, the marking "Components Made in _____, _____, and _____" is acceptable, provided that the requirements of legibility, permanency and conspicuousness are met.

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
Commercial Rulings Division