MAR 2-05 CO:R:C:V 734646 LR
Mr. Ronald E. Senn
Customs/Import Mgr., Transportation
3M Center PO Box 33250
St. Paul, MN 55133
RE: Country of origin marking of disposable containers;
19 CFR 134.32(m); U.S. articles exported and returned;
abrasive belting material; HRL 729316; articles of foreign
origin
Dear Mr. Senn:
This is in response to your letter dated May 13, 1992,
requesting a ruling on the country of origin marking of imported
disposable containers for abrasive belting material excepted from
marking under 19 CFR 134.32(m).
FACTS:
Minnesota Mining and Manufacturing Company (3M), produces
abrasive belting material in the U.S. into continuous rolls in
various widths. The rolls are exported to Mexico and processed
there by cutting to proper length (and, in some cases also to
proper width), and splicing the ends. In Headquarters Ruling
Letter (HRL) 729316, April 20, 1989, it was determined that the
Mexican processing did not substantially transform the belts into
a product of Mexico and that the belts are excepted from marking
pursuant to 19 CFR 134.32(m) pertaining to U.S. goods exported and
returned. You now ask whether disposable containers containing the
finished product are required to be labeled as to origin and if so,
whether "Made in the United States" is acceptable.
ISSUE:
What are the 19 U.S.C. 1304 country of origin marking
requirements for disposable containers for abrasive belts which
are excepted from marking under 19 CFR 134.32(m)?
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 (emphasis added). Part 134,
Customs Regulations (19 CFR Part 134), implements the country of
origin marking requirements and exceptions of 19 U.S.C. 1304.
Should the containers be labeled to indicate their own origin?
The marking requirements for containers are set forth in 19
U.S.C. 1304(b) and 19 CFR Part 134, Subpart C. 19 U.S.C. 1304(b)
states that "usual containers in use as such at the time of
importation shall in no case be required to be marked to show the
country of their own origin." 19 CFR 134.24(d) similarly provides
that usual disposable containers in use as such at the time of
importation shall not be required to be marked to show the country
of their own origin. Usual containers include those ordinary
disposable types of containers or holders, including cans, bottles,
paper or polyethylene bags, paperboard boxes, and similar
containers or holders which are ordinarily discarded after the
contents have been consumed. See 19 CFR 134.24(a). For purposes
of this ruling, we assume that the containers in question are usual
disposable containers which fall within these provisions.
Accordingly, they are not required to be marked with their own
country of origin.
Should the containers be labeled to indicate the origin of the
contents?
In general, disposable containers are required to indicate
the country of origin of their contents. In this regard, 19 CFR
134.24(d) provides that usual disposable containers in use as such
at the time of importation shall be marked to indicate the origin
of their contents regardless of the fact that the contents are
excepted from marking requirements. 19 CFR 134.22(a) similarly
states that when an article is excepted from the marking
requirements, the outermost container or holder in which the
article ordinarily reaches the ultimate purchaser shall be marked
to indicate the country of origin of the article whether or not the
article is marked to indicate its country of origin. In such
manner, the ultimate purchaser will be advised of the country of
origin of the contents, even though the contents are not required
to marked. However, based on the following discussion, we conclude
that these provisions do not apply when the contents are excepted
from marking under 19 CFR 134.32(m).
19 CFR 134.32(m) excepts from marking products of the United
States which are exported and returned. Even though this provision
is included as an "exception", articles which qualify under
134.32(m) are actually outside the scope of 19 U.S.C. 1304. This
is because the marking requirements set forth in 19 U.S.C. 1304
apply only to "articles of foreign origin imported into the United
States and foreign origin refers to a country of origin other than
the United States. 19 CFR 134.1(c). (Country of origin means the
country of manufacture, production, or growth of any article of
foreign origin entering the United States. 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" within the meaning of Part 134. 19 CFR
134.1(b))
In the case of a U.S. article exported and returned, with
limited exceptions not applicable here, we have determined that
such article is not required pursuant to 19 U.S.C. 1304 to be
marked with its country of origin unless it has been substantially
transformed prior to its return. Absent a substantial
transformation, the article in question remains a U.S. article and
is not "an article of foreign origin". Accordingly, U.S. articles
exported and returned are not articles of foreign origin which are
subject to the marking requirements of 19 U.S.C. 1304. An
alternative approach would be to conclude, as we did in HRL 729316,
that such articles are excepted from marking pursuant to 19 CFR
134.32(m), pertaining to U.S. articles exported and returned. In
either case, no marking of the article is required whether such
marking appears on the article itself or on its container. The
general requirement that usual disposable containers be marked to
indicate the origin of the contents is simply not applicable when
the contents are not of foreign origin.
Since we determined in HRL 729316 that the subject U.S.
abrasive belting material is not substantially transformed in
Mexico, it would not be considered an article of foreign origin
subject to the requirements of 19 U.S.C. 1304 on its return.
Accordingly, notwithstanding the container provisions set forth in
19 CFR Part 134, Subpart C, assuming the disposable container is
imported with the product, no 19 U.S.C. 1304 marking requirements
apply either to the product or its container. Whether they may be
labeled "Made in the United States" is a question which should be
addressed to the Federal Trade Commission.
HOLDING:
For purposes of 19 U.S.C. 1304, disposable containers imported
with abrasive belts excepted from marking pursuant to 19 CFR
134.32(m) are not required to be marked either with their own
country of origin or with the origin of their contents.
Sincerely,
John Durant, Director