MAR-2-05 CO:R:C:V 735297 RSD
David A. Eisen, Esq.
Tompkins & Davidson
One Astor Plaza
1515 Broadway, 43rd Floor
New York, New York 10036-8901
RE: Country of origin marking of watches by use of a hang tag;
permanent; conspicuous; 19 CFR 134.44
Dear Mr. Eisen:
This in response to your letter dated August 4, 1993,
requesting a ruling under Part 177 of the Customs Regulations
submitted on behalf of Fossil, Inc., of Dallas, Texas concerning
the country of origin marking of watches. We have received a
representative sample of the proposed hang tag that will be used
to marked the imported watches.
FACTS:
Fossil Inc., proposes to mark the country of origin of watches
that it will be importing through use of hang tags. The hang tags
will be affixed to the band of the watch. The sample hang tag has
a black elastic string, which we presume will be used to attach the
hang tag to watch band. We have no indication where on the watch
band the hang tag will placed and exactly how it will be attached
to watch band. The hang tag has a logo for Fossil Watches printed
on it. Below this logo, the following is written in black letters
of about 4.5 points against a white background:
JAPAN MOVEMENT
STRAP MADE
IN HONG KONG
ISSUE:
Is the proposed method of marking the watches and watch
straps, through the use of a hang tag as described above and
illustrated by sample hang tag acceptable?
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, and permanently as the nature of the article (or
container) will permit, in such manner as to indicate to the
ultimate purchaser in the U.S. the English name of the country of
origin of the article. Congressional intent in enacting 19 U.S.C.
1304 was that the ultimate purchaser should be able to know by an
inspection of the marking of 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." United
States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940).
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(b), Customs Regulations (19 CFR
134.41(b)), mandates that the ultimate purchaser in the U.S. must
be able to find the marking easily and read it without strain.
It has been the position of the U.S. Customs Service for many
years that the country of origin of a watch or clock is the country
of manufacture of the watch or clock movement. The addition of the
hands, dial, case, or watchband add definition to the time piece
but do not change the character or use of the watch or clock
movement which is the "guts" of the watch or clock. Accordingly,
in order to satisfy the requirements of 19 U.S.C 1304, a watch must
be legibly marked with the name of the country of manufacture of
the watch movement in a conspicuous place.
Section 134.43(b), Customs Regulations (19 CFR 134.43(b)), in
conjunction with section 11.9, Customs Regulations (19 CFR 11.9),
provides that watches must be marked in accordance with the special
marking requirements set forth in Chapter 91, Additional U.S. Note
4 of the Harmonized Tariff Schedule of the United States (HTSUSA)
(19 U.S.C. 1202). This note requires that any watch movement, or
case provided for in the subpart, whether imported separately or
attached to any article provided for in the subpart, shall not be
permitted to be entered unless conspicuously and indelibly marked
by cutting, die-sinking, engraving, stamping, or mold-marking
(either indented or raised), as specified in the provisions of this
note. This marking is mandatory. The Customs Service has no
authority for granting exceptions to the special marking
requirements for watches.
Section (a) of Additional U.S. Note 4 requires that watch
movements shall be marked on one or more of the bridges or top
plates to show the manufacturer or purchaser; and, in words, the
number of jewels, if any servicing a mechanical purpose as
frictional bearings. Section (c) of Additional U.S. Note 4
requires that watch cases shall be marked on the inside or outside
of the back cover to show the name of the country of manufacture,
and the name of the manufacturer or purchaser. The country of
manufacture in these requirements refers to where the movements and
cases are manufactured rather than where the watch was made. The
special marking must be accomplished by one of the methods
specified in the Additional U.S. Note 4, and using stickers is not
an acceptable alternative.
You are inquiring as to whether the watches that Fossil
imports can be marked with hang tags. As a general rule, section
304 marking requirements are best met by marking worked into the
article at the time of manufacture. For example, it is suggested
that the country of origin for metal articles be die-sunk, molded
in or etched. See 19 CFR 134.41. However, for section 304
marking, the Customs Service normally permits any reasonable method
of marking that will remain on the article during handling until
it reaches the ultimate purchaser. This includes the use of paper
stickers or pressure sensitive labels and string tags. If hang
tags or pressure sensitive labels are used, section 134.44, Customs
Regulations (19 CFR 134.44), provides that they must be so securely
affixed in a conspicuous place that, unless deliberately removed,
they will remain on the article while it is in storage or on
display and until it is delivered to the ultimate purchaser.
For section 304, the country of origin marking for a watch
may be placed in any conspicuous location. This would include
marking on the face of the dial or on the outside surface of the
back cover of the watch case. An adhesive sticker or hang tag may
be used for section 304 marking on a watch as long as the sticker
or hang tag is affixed so securely that, unless deliberately
removed, it will remain on the watch while it is in storage or on
display until it is delivered to the ultimate purchaser. The marking must also be legible and in a conspicuous
place so that the ultimate purchaser can make an informed
purchasing decision. See HQ 734758 (March 1, 1993).
In this case, a hang tag will be attached to the watch straps.
The country of origin marking, "Japan Mvmt", on the sample hang tag
can be read without strain. Therefore, we find the country of
origin marking to be legible. Although we do not have a sample of
how or where the hang tag will be attached to the watch strap or
band, generally, a hang tag attached to the watch strap would be
a conspicuous location to put the country of origin marking for a
watch. However, because we do not have a sample of how the hang
tags will be attached to the watch straps, we cannot rule on
whether the hang tags are sufficiently permanent to satisfy the
requirements of 19 CFR 134.41(b) and 19 CFR 134.44.
The special marking requirements of Additional U.S. Note 4 of
Chapter 91 of the HTSUS as indicated above cannot be satisfied by
the use of a hang tag. One of the specified methods must be used.
Consequently, the markings on the hang tag do not satisfy the
special marking for watches of U.S. Additional Note 4 of Chapter
91 of the HTSUS. To satisfy the special marking requirements, the
movements and the watch case must be marked, as specified above,
by cutting, die-sinking, engraving, stamping, or mold-marking
(either indented or raised). We have no indication as to whether
the watch movements or watch cases are correctly marked.
Additionally, with regard to the watch strap or band, Customs
has determined that a watch strap must be separately marked when
its country of origin is different than that of the watch. This
is because the attachment of the watch strap to the watch does not
effect a substantial transformation of the watch strap; after
attachment, the strap maintains its separate identity. See HQ
734565 (October 16, 1993). The marking on the hang tag regarding
the country of origin of the watch strap would satisfy the
requirements of 19 U.S.C. 1304 for indicating the country of origin
of the watch strap.
HOLDING:
Assuming that the sample hang tag is securely affixed to the
watch strap so that it will remain on the watch until it reaches
the ultimate purchaser, the country of origin marking of the watch
through the use of a hang tag attached to the watch strap satisfies
the requirements of 19 U.S.C. 1304. The marking on the hang tag
does not satisfy the special marking requirements of U.S.
Additional Note 4 of the Chapter 91 of the HTSUS. The marking on
the hang tag is an acceptable method of indicating the country of
origin of the watch strap.
Sincerely,
John Durant, Director