MAR-2-05 RR:TC:SM 560527 MLR

Port Director
U.S. Customs Service
P.O. Box 3130
(Juarez-Lincoln Bridge)
Laredo, TX 78044

RE: Internal Advice; Country of origin marking for brooms; broom heads; handles; Mexico; Italy; NAFTA; Article 509 Dear Director: This is in reference to your memorandum of May 29, 1997, requesting Internal Advice on the country of origin marking requirements for broom heads imported by Cabello-Canales Worldwide on behalf of American Cleaning Supply. A sample broom head was submitted with your request. FACTS: It is stated that cornbroom broom heads (classifiable under subheading 9603.10, Harmonized Tariff Schedule of the United States (HTSUS)) are made in and imported from Mexico without handles. The broom heads are packed 24 to a box, with the box marked "Made in Mexico." It is stated that they will be assembled with Italian handles in the U.S. by Rubbermaid Commercial. Each broom head is covered by a plastic sleeve at the time of entry with complete marketing information (including the words Greenville, N.C.) and the marking "Assembled in USA from Mexican & Italian components", intended for the ultimate purchaser. ISSUE: Whether the finished brooms may be marked, via the marking on the plastic sleeves, "Assembled in USA from Mexican & Italian components". 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. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. The first question to be resolved is what is the country of origin of the finished broom. 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 this part; however for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added.) Section 134.1(j), Customs Regulations (19 CFR 134.1(j)), provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. A "good of a NAFTA country" is defined in 19 CFR 134.1(g) as an article for which the country of origin is Canada, Mexico, or the U.S. as determined under the NAFTA Marking Rules set out at 19 CFR Part 102. Accordingly, since the broom head is stated to be made in Mexico, the NAFTA Marking Rules will be applied for purposes of determining whether the finished broom continues to be a product of Mexico. Therefore, Headquarters Ruling Letter (HRL) 734906 dated December 7, 1993, (holding that a broom head from Mexico and a handle from Italy were not substantially transformed when they were assembled together in the U.S., and, therefore, could be marked "Handle from Italy, Head from Mexico") is not applicable to the facts at hand. Section 102.11, Customs Regulations (19 CFR 102.11), sets forth the required hierarchy for determining whether a good is a good of a NAFTA country for marking purposes. Paragraph (a) of this section states that the country of origin of a good is the country in which: (1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. In this case, the applicable rule is 19 CFR 102.11(a)(3). The finished brooms are classifiable under heading 9603, HTSUS. The applicable change in tariff classification for heading 9603 set out in section 102.20(s), Section XX, Chapters 94 through 96, provides: 9603 ... A change to heading 9603 from any other heading. It is stated that the imported broom head is classifiable under subheading 9603.10, HTSUS. Therefore, the imported broom heads will not undergo the requisite tariff shift. While a description of the broom handle from Italy was not provided, they are either classifiable under heading 3926, HTSUS, if they are plastic, or heading 4417, HTSUS, if they are wood. Therefore, since the broom handles from Italy are not classifiable in heading 9603, HTSUS, they will meet the requisite tariff shift. Because the broom heads do not undergo the requisite tariff shift, section 102.11(b) of the hierarchial rules must be applied, which in pertinent part provides that: Except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a), the country of origin of the good: (1) Is the country or countries of origin of the single material that imparts the essential character of the good ... When determining the essential character of a good under 19 CFR 102.11, 19 CFR 102.18(b)(1) provides that only domestic and foreign materials that are classified in a tariff provision from which a change is not allowed shall be taken into consideration. Section 102.18(b)(1)(iii), Customs Regulations (19 CFR 102.18(b)(1)(iii)), provides that if there is only one material that is classified in a tariff provision from which a change in tariff classification is not allowed, then that material will represent the single material that imparts the essential character to the good under 19 CFR 102.11. Pursuant to 19 CFR 102.18(b)(1)(iii), the single material that imparts the essential character of the finished broom is the broom head. Accordingly, the country of origin of the finished broom is the country of origin of the broom head, which is Mexico. Therefore, it will not be acceptable to mark the finished broom "Assembled in USA from Mexican & Italian components" because the country of origin of the finished broom is Mexico and because of the provisions of section 134.46. Section 134.46, Customs Regulations, as amended by T.D. 97-72 (62 FR 44211, August 20, 1997), provides that whenever words appear on imported articles indicating the name of a geographic location other than the true country of origin of the article, and those words may mislead or deceive the ultimate purchaser as to the actual country of origin, there shall appear legibly and permanently in close proximity to such words, 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. We note in this case, that the plastic sleeve also contains the marking "Cleaning Products Inc., Greenville, N.C., 27835-1606 U.S.A." on the same side as the marking "Assembled in USA from Mexican & Italian components." Accordingly, it is our opinion that since the above marking may mislead the ultimate purchaser to believe that the origin of the article is the U.S., the broom must be labeled, "Made in Mexico" or "Product of Mexico" or words or similar meaning. The importer also states that it wishes to inform the consumer of the complete process and country of origin of the completed broom, and claims that the use of the legend "Assembled in" is not applicable to circumstances where there are multiple countries of origin (the importer is referring to the determination in HRL 734906 which held that the country of origin of the broom is Italy and Mexico). Therefore, the importer claims that 19 CFR 134.43(e) is not applicable. Section 134.43(e), Customs Regulations (19 CFR 134.43(e)), provides that: [w]here an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such article may be marked, as appropriate, in a manner such as the following: (1) Assembled in (country of final assembly); (2) Assembled in (country of final assembly) from components of (name of country or countries of origin of all components); or (3) Made in, or product of, (country of final assembly). In a general temporary marking exception published at 61 FR 37678 (July 19, 1996), Customs stated that it will not be acceptable to use the terms "Made in", "Product of", or words of similar meaning, along with the words "Assembled in" in a single country of origin marking statement on articles of foreign origin imported into the U.S. However, as the marking statute pertains to foreign articles imported into the U.S., and in this case only the broom head imported into the U.S. remains foreign (and dictates the final origin of the finished broom), Customs would not object to marking the finished broom, "Assembled in U.S.A. with Broom Head Made in Mexico and handle from Italy," or "Components Assembled in U.S.A., Broom Made in Mexico." The Federal Trade Commission, however, should be contacted regarding the use of the phrase "Assembled in U.S. A." HOLDING: Based upon the information provided, pursuant to 19 CFR 102.18(b)(1)(iii), the country of origin of the finished broom is the country of origin of the broom head, which is Mexico. Accordingly, it will only be necessary to mark the finished broom "Made in Mexico" on the same side and surface and in a comparable size as the U.S. address. However, since the marking statute pertains to foreign articles imported into the U.S., and only the broom head imported into the U.S. remains foreign (and dictates the final marking of the finished broom), Customs would not object to marking the finished broom, "Assembled in U.S.A. with Broom Head Made in Mexico and handle from Italy", or "Components Assembled in U.S.A., Broom Made in Mexico." The Federal Trade Commission, however, should be contacted regarding the use of the phrase "Assembled in U.S.A." This decision should be mailed by your office to the internal advice requester no later than 60 days from the date of this letter. On that date the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.

Sincerely,


John Durant, Director
Tariff Classification Appeals
Division