MAR-2-05 CO:R:C:V 733592 KG
Andrew P. Vance, Esq.
Barnes, Richardson & Colburn
475 Park Avenue South
New York, N.Y. 10016
RE: Country of origin marking of imported sweaters
Dear Mr. Vance:
This is in response to your letter of June 7, 1990,
requesting a country of origin ruling on behalf of American
International Knitters Corp., regarding imported sweaters.
FACTS:
Your client imports sweaters made from panels that are knit
to shape in China, Taiwan or Korea. The panels will then be
shipped to the Commonwealth of the Northern Mariana Islands
("CNMI") where they will be assembled into sweaters by looping or
sewing. The finished sweaters will then be washed, packed and
shipped to the U.S.
ISSUE:
Whether the legends "Made in China, finished in Northern
Mariana Islands (U.S.A.)" or "Assembled in Northern Mariana
Islands (U.S.A.), knit in China" would be acceptable
country of origin markings for imported sweaters made as
described above.
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 at 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. Treasury Decision 90-17, published in the Federal
Register on March 1, 1990 (55 F.R. 7303), announced a change of
practice to conform the rules of origin for textile products for
all purposes to section 12.130, Customs Regulations (19 CFR
12.130). Pursuant to 19 CFR 12.130, the country of origin of a
sweater is the country where the panels are knit. If the panels
are knit in one country and assembled in a second country, the
first country would be considered the country of origin of the
sweater.
In HQ 733323 (May 2, 1990), Customs determined that any
acceptable marking for sweaters knit in China must clearly
indicate that China is the country of origin. The phrase "Knit
in China. Assembled in Hong Kong." was found to clearly indicate
that China is the country of origin and therefore, this phrase
was ruled to be acceptable for country of origin marking
purposes. Similarly, Customs ruled in HQ 733534 (June 7, 1990),
that the phrase "Handknit in China" clearly indicates that China
is the country of origin and would not cause any confusion as to
the origin of any imported product so marked.
Customs treats the CNMI as a territory or possession of the
United States. Accordingly, products of the CNMI are excluded
from country of origin marking requirements. HQ 729704
(September 12, 1986).
If the sweater panels were knit in China and assembled in
the CNMI, the country of origin of the finished sweater would be
China in accordance with 19 CFR 12.130. Therefore, the two
legends you proposed, which would clearly indicate that China is
the country of origin and that the sweaters are then assembled
and finished in the CNMI, which is considered a territory or
possession of the U.S., are acceptable.
HOLDING:
The two legends you proposed for the imported sweaters
described above, are acceptable for country of origin marking
purposes.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch
cc: Bret S. Smart
Federal Trade Commission
11000 Wilshire Boulevard
Suite 13209
Los Angeles, California 90024