MAR-2-05 RR:CR:SM 560900 MLR

Ned H. Marshak, Esq.
Sharretts, Paley, Carter & Blauvelt, P.C.
67 Broad Street
New York, NY 10004

RE: Country of origin marking for camera; container marking; 19 CFR 134.32(d); 19 CFR 134.26

Dear Mr. Marshak:

This is in reference to your letter of March 17, 1998, requesting a ruling on behalf of Fuji Photo Film U.S.A., Inc., concerning the country of origin marking requirements applicable to certain cameras imported from Indonesia in their retail packages. A sample was submitted with your request.

FACTS:

The sample submitted is Fuji's Photo Film's Endeavor 300 Zoom camera, packaged in a retail container. It is stated that the camera will always be imported and sold to consumers in the retail package as this retail package is specially designed and constructed to hold one camera, a roll of film, and a strap, and is printed with the bar code for the camera, as well as camera specifications. The retail package also contains a warranty card and an instruction booklet. While the sample camera itself is marked "Fuji Photo Film Co., Ltd. Tokyo, Japan, Made in Indonesia," you propose to only mark the retail package and not the camera itself and you confirmed in a telephone conversation on April 15, 1998, that all references to "Tokyo Japan and Made in Indonesia" will be removed from the camera.

It is stated that the retail package will be securely closed at the time of entry and when it is sold to the consumer, but it will not be sealed. Fuji plans to import the cameras and resell them to retailers. Fuji claims that the retailers, and where applicable, their customers, will always sell the cameras in the properly marked retail packages. One of the side panels contains the following: "END 300Z FILM EX US" and "Designed by Fuji Photo Film Co., Ltd. Tokyo Japan. Made in Indonesia." The inside of the retail package contains a box of film marked "Made in Japan by Fuji Photo Film Co., Ltd., Tokyo 106."

ISSUE:

Whether the cameras themselves may be excepted from individual country of origin marking pursuant to 19 CFR 134.32(d).

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. As provided in 19 CFR 134.1(d) the ultimate purchaser is generally the last person in the U.S. who will receive the article in the form in which it was imported. In this case, the ultimate purchaser will be the consumer of the camera at retail.

It is stated that the cameras will be imported and remain in the retail package from Indonesia. Pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d), an exception from individual marking is applicable where the marking of the container of the article will reasonably indicate the origin of the article. This exception is normally applied in cases where the article is imported in a properly marked container and Customs officials at the port of entry are satisfied that the ultimate purchaser will receive it in the original unopened marked container. Relevant factors regarding whether an article is likely to remain in its original container include the chain of distribution, the type of container, and the nature of the article.

As support for your position that the cameras themselves do not have to be individually marked, Headquarters Ruling Letter (HRL) HRL 559997 dated December 18, 1996, is cited where Customs considered the marking of custom lapel pins, hand crafted in either soft or hard enamel, some of which were used as recognition awards and give-aways by major corporations or licensed with major universities and sold in the marketplace. The pins were individually wrapped in clear bags and then packaged in larger bags containing 25 pins. On the outside of each individual bag, a sticker was affixed with the marking "Made in Taiwan". Customs found that the lapel pins did not have to be individually marked, since the individual packaging of each pin tended to show that the pins were designed to be distributed in this fashion and would remain in their marked plastic bags as the pins were small and could get lost or tarnished were they to be removed prior to receipt by the ultimate purchaser.

HRL 734157 dated July 15, 1991, is also cited, where Customs considered tights packaged in clear plastic containers which were sealed with an adhesive strip and marked with the country of origin "France" by affixing a paper label to each container. Each container was also imprinted with the word "Paris" directly below on the middle front panel. Although the plastic containers were not permanently sealed, Customs found that since they contained all the information about the product (e.g. material composition, color, size and style), it was clear the product was designed to be sold to the ultimate purchaser in the plastic container.

In this case, it is claimed that it is highly unlikely that the cameras will be removed from the retail packaging in which they are imported prior to sale to the ultimate purchaser since the packages contain important information about the cameras, protect the cameras from damage, contain operating instructions and warranty cards, and consumers will not want to buy the camera without the assurance that the camera is genuine and undamaged. We agree. While the camera most likely will not be displayed at retail in the packaging, we agree that the ultimate purchaser will receive the camera in its retail packaging prior to or at the time of purchase. Therefore, we find that an exception from individual marking may be granted as the retail packaging will reasonably indicate the origin of the camera.

However, since Fuji's customers may resell the cameras to their customers, and given the sensitive nature of cameras, the certification requirements of 19 CFR 134.26 must be followed. Section 134.26(a), Customs Regulations {19 CFR 134.26(a)}, provides in pertinent part that:

If an imported article subject to these requirements is intended to be repacked in retail containers (e.g. blister packs) after its release from Customs custody, or if the port director having custody of the article, has reason to believe that such article will be repacked after its release, the importer shall certify to the port director that: (1) If the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new container shall be marked to indicate the country of origin of the article in accordance with the requirements of this part; or (2) if the article is intended to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or transferee, that any repacking of the article must conform to these requirements.

Accordingly, with regard to the imported cameras, we find that if they are imported in marked containers and the repacking certification set forth at 19 CFR 134.26(a) is filed with Customs at the port of entry, the cameras themselves may be excepted from marking at the time of importation pursuant to 19 CFR 134.32(d).

With regard to the marking on the retail packaging, "Designed by Fuji Photo Film Co., Ltd, Tokyo Japan", we find that the requirements of section 134.46 have been satisfied, which provides that:

In any case in which the words "United States," or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or location in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced appear on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin of the article, 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.

While T.D. 97-72 (62 FR 44211, August 20, 1997), amended section 134.46, to trigger the special marking requirements only when a marking on an imported article or its container is capable of being misleading or deceiving, in response to a comment, Customs specifically stated that a reference such as "Designed by" would be misleading to the ultimate purchaser and would require country of origin marking in accordance with section 134.46. However, as the country of origin marking "Made in Indonesia" is in the same size lettering and right below the reference to "Tokyo Japan" on the packaging, we find that the requirements of 19 CFR 134.46 have been satisfied. With regard to "END 300Z FILM EX US", we do not find that section 134.46 is triggered, as we find that the reference "US" in this context would not mislead the ultimate purchaser to believe that the camera or film is made in the U.S. Furthermore, while you have confirmed that the marking on the camera itself "Fuji Photo Film Co., Ltd. Tokyo, Japan, Made in Indonesia" would be removed, we find that if the camera is marked with the phrase "Fuji Photo Film Co., Ltd. Tokyo, Japan" the requirements of section 134.46 would have to be satisfied as this marking may mislead or deceive the ultimate purchaser regarding the actual country of origin. See also New York Ruling Letter (NYRL) A80244 dated April 15, 1996, and NYRL A84523 dated July 1, 1996.

We also note that the country of origin of the film is Japan, and as you state, the film will be enclosed as part of the retail packaging of the camera. We find that marking the box of the film alone without marking the outside retail packaging of the camera is sufficient, provided the retail packaging is not sealed, as it is likely that a consumer will open and examine the contents of the retail packaging to assure that the camera is in good condition. HOLDING:

Based on the facts and sample presented, we find that an exception from individual marking of the camera may be granted as the retail packaging will reasonably indicate the origin of the camera, and provided the Customs officials at the time and port of entry are satisfied that the ultimate purchaser will receive it in the original unopened marked container. However, given that Fuji sells the cameras to customers who in turn may resell the cameras, the certification requirements of 19 CFR 134.26 will be applicable. Additionally, we find that the requirements of 19 CFR 134.46 are triggered by the reference "Designed by ... Toyko Japan", but that they are satisfied on the retail packaging as the marking "Made in Indonesia" is in the same size lettering and in close proximity to such words. Marking the box of film alone as to its own country of origin without making reference to such on the outside retail packaging is sufficient as it is likely that a consumer will open and examine the contents of the retail packaging to assure that the camera is in good condition.

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
Commercial Rulings Division