MAR-2-05 CO:R:C:V 733661 KG
Edward B. Ackerman, Esq.
Siegel, Mandell & Davidson, P.C.
One Whitehall Street
New York, N.Y. 10004
RE: Country of origin marking of imported locksets
Dear Mr. Ackerman:
This is in response to your letter of July 11, 1990,
requesting a country of origin ruling on behalf of Schlage Lock
Co., regarding imported locksets assembled in Mexico.
FACTS:
Your client imports locksets and parts of locksets from
Mexico, comprised of both U.S. and Mexican made components. You
assert that your products are entitled to a partial duty
exemption under subheading 9802.00.80 of the Harmonized Tariff
Schedule of the United States ("HTSUS") and may be entitled to
duty-free entry as qualifying products under the Generalized
System of Preferences ("GSP"). You plan to enter the imported
locksets as duty-free under the GSP.
ISSUE:
Whether marking the imported locksets and parts of locksets,
which are entered as duty-free under the GSP, with the legends
"Assembled in Mexico from U.S. and Mexican components" or
"Assembled in Mexico" would satisfy the country of origin marking
requirements.
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.
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. Section 10.22, Customs Regulations (19 CFR 10.22),
states that assembled articles entitled to the duty exemption
under subheading 9802.00.80 of the Harmonized Tariff Schedule of
the United States ("HTSUS"), are considered products of the
country of assembly for the purposes of country of origin
marking. If an imported assembled article is made entirely of
American-made materials, the United States origin of the material
may be disclosed by using a legend such as "Assembled in ____
from material of U.S. origin," or a similar phrase.
The crux of the issue presented is whether an imported
article entitled to the partial duty exemption under HTSUS
subheading 9802.00.80 but actually entered duty free under
another provision could be marked in accordance with 19 CFR
10.22 to satisfy the country of origin marking requirements.
This provision provides a standard for country of origin
determinations that applies only to assembled articles that are
"entitled" to the partial duty exemption under HTSUS subheading
9802.00.80. The provision does not state that the assembled
article must be entered under HTSUS subheading 9802.00.80 to
apply. A fundamental rule of statutory construction is that if
the language of a statute is clear and unambiguous, it must be
held to mean what it plainly expresses. Sutherland Stat Cons
sec. 406 (4th Ed). The term "entitled" is defined in Webster's
New World Dictionary (2nd College Edition), means "having a right
to." In this case, it is asserted that the imported assembled
articles have a right to or are eligible for a partial duty
exemption under HTSUS subheading 9802.00.80. If, in fact, the
imported assembled articles do have such a right or eligibility,
the articles are within the ambit of 19 CFR 10.22 and should be
marked accordingly.
As you are aware, Customs ruled in HQ 731507 (October 17,
1990), that the marking "Assembled in _______ from U.S. and
Japanese materials" is an acceptable country of origin marking
under 19 CFR 10.22 for products entitled to the partial duty
exemption under HTSUS subheading 9802.00.80 and made out of both
U.S. and Japanese components. The ruling clearly stated that
"the origin of the materials comprising the assembled article may
be added to the country of origin determination, whether or not
the article consists entirely of U.S. materials." This case is
similar to HQ 731507 because the assembled articles are made up
of both U.S. and foreign materials and the importer desires that
the country of origin marking reflect the content of the
materials. Pursuant to the provisions of 19 CFR 10.22, if the
imported locksets or parts of locksets are entitled to the
partial duty exemption under HTSUS subheading 9802.00.80, they
can be marked "Assembled in Mexico," or "Assembled in Mexico of
U.S. and Mexican components."
HOLDING:
The language of 19 CFR 10.22 is interpreted to mean that
imported assembled articles are within the ambit of 19 CFR 10.22
if such articles are entitled or eligible for the partial duty
exemption under HTSUS subheading 9802.00.80. There is no
requirement that the goods are actually entered under that
subheading for 19 CFR 10.22 to apply.
If the imported locksets or parts of locksets are entitled
to the partial duty exemption under HTSUS subheading 9802.00.80,
they can be marked "Assembled in Mexico," or "Assembled in Mexico
of U.S. and Mexican components."
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch