MAR-2-05 CO:R:C:V 732691 KG

David R. Stepp, Esq.
Stein Shostak Shostak & O'Hara
1101 Seventeenth Street, NW
Washington, D.C. 20036-4704

RE: Country of origin marking of imported tote bags and handbags

Dear Mr. Stepp:

This is in response to your letters of August 29, 1989, September 15, 1989, and April 25, 1990, requesting a country of origin ruling regarding imported tote bags and handbags.

FACTS:

You have submitted five sample items. The first sample is a black cloth tote bag about 13 inches by 9 inches. A round patch about 1 1/2 inches wide with the phrase "Pacific Connections of California" appears in the center of the tote bag. A fabric label is sewn into the inseam of the inside of the bag about 4 inches down from the top of the bag. The phrase "Pacific Connections," about 1/4 inch in height, is printed at the top of the label, while the phrase "Made in Taiwan," about 1/8 inch in height, appears at the bottom of the label. A hangtag attached to the tote bag contains the phrase "Pacific Connections" and the initials "PC".

The second sample is a multi-colored cloth handbag about 9 inches by 8 inches. The same round patch described above appears in the center of the flap of the handbag. A fabric label is sewn into the inseam of the inside of the bag about 3 inches down from the top of the handbag. The phrase "Made in Taiwan R.O.C." is printed at the bottom of the label in letters about 1/16 inch in height. A hangtag attached to the handbag contains the phrase "Pacific Connections " and the initials "PC".

The third sample is a black cloth tote bag about 10 inches by 14 inches. The same round patch is in the center of the bag. There is a hangtag attached with the phrase "Pacific Connections" printed on it. A fabric label is sewn into the bag near the center and about 1 1/2 inches down from the top of the bag. The phrase "Made in China" is about 1/16 inch in height in all capital letters.

The fourth sample is a florescent pink and black bag about 7 inches by 8 inches. It has the same round patch in the center and the same country of origin label sewn in about 1/2 inch down in the center of the bag.

The fifth sample is also a florescent pink and black bag about 7 inches by 8 inches with a round patch in the center and a flap closure. The same country of origin label as samples three and four is sewn in about 1 inch down in the side seam of the bag.

ISSUE:

Whether the samples described above satisfy the country of origin marking requirements set forth in section 304 of the Tariff Act of 1930, as amended.

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 U.S. 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 U.S. the English name of the country of origin of the article. The Court of International Trade stated in Koru North America v. United States, 701 F.Supp. 229, 12 CIT ___(CIT 1988), that: "In ascertaining what constitutes the country of origin under the marking statute, a court must look at the sense in which the term is used in the statute, giving reference to the purpose of the particular legislation involved. The purpose of the marking statute is outlined in United States v. Friedlaender & Co., 27 CCPA 297, 302, C.A.D. 104 (1940), where the court stated that: "Congress intended 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."

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41, Customs Regulations (19 CFR 134.41), provides that the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

As noted in your September 15, 1989 letter, C.S.D. 89-91 (March 31, 1989), pointed out that Customs determined in Customs Circular MAR-2-RM (January 16, 1970), that handbags should be marked by means of a fabric label sewn to the lining in a conspicuous place. In that case, the fabric label which was sewn into the side seam of a suitcase was conspicuous because a potential purchaser would unzip the luggage and inspect the interior before making a purchase. Such inspection would immediately reveal the fabric label sewn into the inner seam. Further, in HQ 723116 (September 15, 1983), Customs ruled that the side seam of a handbag was a sufficiently conspicuous place to attach the fabric label bearing the country of origin marking.

Although 19 CFR 134.41 would permit marking a tote bag and a handbag with a fabric label sewn into the side seam, the ultimate purchaser must be able to find the label easily and read the country of origin marking without strain. The presence of a reference to a locality other than the country of origin on the front of these bags makes it particularly important that these bags be conspicuously marked. In this case, the small size and height of the lettering on the fabric tag which also contains the brand label in much larger lettering, and the location of the fabric label, which is sewn far down into both samples one and two, make it difficult to read the fabric labels without strain. The imported tote bag and handbag in this case differ from the imported luggage in C.S.D. 89-91 which could be unzipped to reveal the entire inside of the imported luggage. In the instant case, one cannot read the fabric labels in samples one and two simply by opening the bags. It would be necessary to reach inside the bags and examine the fabric labels closely to see the marking in small letters on the bottom of them. Therefore, samples one and two are not conspicuously marked and do not satisfy the country of origin marking requirements of 19 CFR 134.41.

In contrast, the country of origin labels in samples three, four and five are all easily found by the ultimate purchaser because they are near the top of the bags and easily visible. Further, the bold lettering makes it easier to read and see the country of origin marking. For these reasons, samples three, four and five satisfy the requirements of 19 CFR 134.41.

You referenced section 134.47, Customs Regulations (19 CFR 134.47), in your letter of August 29, 1989, which is applicable where the name of a location in the U.S., the phrase "United States," or "America" appear as part of a trademark, trade name or as part of a souvenir marking. Section 134.47 requires that in such case, the article be legibly, conspicuously and permanently marked to indicate the country of origin. As stated in the discussion above, we find that samples one and two were not conspicuously marked but that samples three, four and five were conspicuously marked.

HOLDING:

Samples one and two are not conspicuously marked and do not satisfy the country of origin marking requirements of 19 CFR 134.41 or 19 CFR 134.47. Samples three, four and five are conspicuously marked and satisfy the requirements of 19 CFR 134.41 and 19 CFR 134.47. Therefore, in order to satisfy the country of origin marking requirements, actual imported articles must be marked like samples three, four or five.

Sincerely,

Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch