MAR-2-05 CO:R:C:V 733838 KG
Mrs. Helen Sugar
C.J. Tower Inc.
128 Dearborn Street
Buffalo, New York 14207-3198
RE: Country of origin marking of imported stuffed cotton dolls;
substantial transformation; conspicuous; 19 CFR 134.41; clearly
indicate
Dear Mrs. Sugar:
This is in response to your letter of October 4, 1990,
requesting a country of origin ruling on behalf of Ganz Bros.
Toys regarding imported stuffed cotton dolls.
FACTS:
The cotton shells are made in the Orient; these cotton
shells have the face and clothing sewn on and have all the
characteristics of the finished doll except that they are not
stuffed. The shells are stuffed and then closed up in Canada.
No information was given about where the stuffing originates.
The finished dolls will then be shipped to the U.S. Two sample
dolls, one stuffed and one not stuffed, were submitted for
examination. The sample shell was made in China. Your client
submitted a sample label which contains the legend, "Shell made
in China Stuffed in Canada." The location of the label on the
sample is sewn into the side seam of the doll which is underneath
the skirt of the doll. Your client proposed that this label be
sewn into the hem of the back of the skirt on future shipments.
No information was submitted regarding the value of the various
components or about the processing involved in stuffing the
dolls.
ISSUE:
What is the country of origin for the purposes of 19 U.S.C.
1304 of these stuffed dolls?
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. Section 134.1(b), Customs Regulations (19 CFR
134.1(b)), defines the country of origin of an article 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 for country of origin marking purposes.
A substantial transformation occurs when articles lose their
identity and become new articles having a new name, character or
use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at 270
(1940), National Juice Products Association v. United States, 10
CIT 48, 628 F.Supp. 978 (CIT 1986), Koru North America v. United
States, 12 CIT ___, 701 F.Supp. 229 (CIT 1988).
These cotton shells already have all the physical
characteristics of the finished doll, including the face and
clothing, except for the stuffing. Clearly, these shells are
dedicated to use and could not be made into any article except
the finished doll envisioned. The stuffing operation does not
alter the name or character of the cotton shell or create a new
article of commerce. Although the doll is not functional until
it is stuffed, this factor is not determinative. The orange
juice concentrate in National Juice, which was held to be not
substantially transformed when processed into orange juice, was
not drinkable in its imported form. No figures were submitted
concerning the cost of the Chinese or Canadian processing and
there is no indication that the processing is costly. Further,
no information was submitted about the processing operation in
Canada and we assume that it is a simple stuffing sewing
operation. Based on the limited information presented, we
conclude that there is no new article of commerce and no change
in name, character or use. Therefore, the cotton shells are not
substantially transformed in Canada and the country of origin of
the stuffed dolls is the country where the cotton shells are
made.
The label used to mark the country of origin must clearly
indicate the country where the doll is made. For instance, for
the sample submitted, the country of origin of the doll would be
China and the doll must be properly marked to indicate that
China is the country of origin. The legend "Shell made in China
Stuffed in Canada" does not clearly indicate the country of
origin of the doll and would not be an acceptable country of
origin marking.
Section 134.41(b), Customs Regulations (19 CFR 134.41(b)),
requires that the marking be conspicuous enough that ultimate
purchaser will be able to find the marking easily and read it
without strain. The location of the label on the sample doll
would not satisfy the requirements of 19 CFR 134.41(b), because
the ultimate purchaser would have to lift up the doll's skirt to
see the label. Without a sample of the proposed marking, we
cannot determine whether such marking is conspicuous. We suggest
sewing the label into one of the hands or the feet of the doll.
HOLDING:
The country of origin of the stuffed dolls is the country
where the cotton shells are made. The legend "Shell made in
China Stuffed in Canada" does not clearly indicate the country of
origin of the doll and would not be an acceptable country of
origin marking. The label on the sample doll, which is sewn in
the side seam underneath the skirt, is not conspicuous and
therefore, is unacceptable.
Sincerely,
John Durant
Director,
Commercial Rulings Division