MAR-2-05 CO:R:C:S 735482 KR
Mr. Steven P. Sonnenberg
Sonnenberg, Anderson & Rodriguez
200 South Wacker Drive
33rd Floor
Chicago, Illinois 60606
RE: Country of origin marking of fastener; alternative country
of origin marking.
Dear Mr. Sonnenberg:
This is in response to your letter dated January 9, 1995,
requesting a country of origin marking ruling on behalf of your
client, Whitesell Manufacturing, Inc., regarding fasteners which
are manufactured in the U.S. and Taiwan. You have submitted
sample boxes for our review.
FACTS:
You state that Whitesell Manufacturing Inc. (hereinafter
"Whitesell"), manufacturers fasteners which are sold directly to
the end users, and sells none through distributors to the general
public. You state that 80% of the fasteners are of U.S. origin
and 20% are imported from Taiwan. The fasteners are not
commingled, but are kept in separate inventory. The fasteners
are sold in boxes. Each box of fasteners contains only domestic
or only imported fasteners. The fasteners are never commingled.
You state that there are three types of labels used on the
boxes Whitesell uses to package the fasteners. The boxes
containing the imported fasteners bear a label which reads:
THIS CARTON CONTAINS DOMESTIC FASTENERS
AND/OR FASTENERS PRODUCED IN TAIWAN
THESE FASTENERS HAVE BEEN PRODUCED TO
MEET ALL WHITESELL MANUFACTURING'S
QUALITY STANDARDS
MADE IN TAIWAN
You state that although the box will only contain imported
fasteners, the language including "DOMESTIC" fasteners is used in
the case of an error in applying a label to the wrong box which
would contain only domestic fasteners.
A box containing only domestic fasteners, but of a type
which is also imported, will be marked with the same label as
above, minus the "MADE IN TAIWAN":
THIS CARTON CONTAINS DOMESTIC FASTENERS
AND/OR FASTENERS PRODUCED IN TAIWAN
THESE FASTENERS HAVE BEEN PRODUCED TO
MEET ALL WHITESELL MANUFACTURING'S
QUALITY STANDARDS
A box containing fasteners of a type which are only produced
domestically are packaged in a box which contains no country of
origin label. Each of the sample boxes was printed with
Whitesell's U.S. address in Muscle Shoals, Alabama.
ISSUE:
Whether the country of origin marking may list alternative
countries as the possible country of origin on the packaging of
fasteners where the fasteners are not commingled.
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 1120 (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(d), Customs Regulations (19 CFR
134.1(d)), defines the ultimate purchaser as generally the last
person in the U.S. who will receive the article in the form in
which it was imported. The definition then gives examples of who
might be the ultimate purchaser if the imported article is used
in manufacture, if the imported article is sold at retail in its
imported form, the purchaser at retail is the ultimate purchaser.
An article is excepted from marking under 19 U.S.C.
1304(a)(3)(D) and 19 CFR 134.32(d), if the marking of a container
of such article will reasonably indicate the origin of such
article. Accordingly, if the fasteners are imported and sold in
marked containers and the ultimate purchaser can tell the country
of origin of the fasteners by viewing the country of origin
marking on the container, the individual pieces would be excepted
from marking under this provision.
Customs policy is that in most circumstances, it is not
acceptable for purposes of 19 U.S.C. 1304 to mark an article
with the legend "Product of ____ or ____". In C.S.D. 89-111 we
ruled that certain effervescent enzymatic cleaner tablets,
products of both the U.S. and West Germany, were required to be
marked for retail sale with the actual country of origin of West
Germany. Although Customs acknowledged that the seller could
avoid expense by using the disjunctive marking, "Made in ___, or
____", Customs was not satisfied that fully accurate marking
would amount to an economic prohibition, and therefore required
the item to be marked with only the actual country of origin of
each individual item.
Although Customs normally requires that an article be marked
with its specific country of origin, in some cases we have
determined that strict compliance with this requirement would be
economically prohibitive and alternative methods have been
approved. In C.S.D. 84-50, regarding fertilizer, and C.S.D. 84-44, regarding honey, the product was a repacked blend from
multiple countries, and marking of the major source countries was
required. In those cases Customs did not agree that it was
economically prohibitive to mark the articles with a substantial
degree of accuracy.
In HQ 734101 (July 9, 1991), we allowed toys sold inside
plastic eggs in a vending machine to be individually marked with
the actual country of origin, but since this was not visible, to
have the machine marked "The Toys Contained In This Machine Are
Marked With The Country Of Origin, And May Be Made In One Or More
Of The Following Countries: Hong Kong Taiwan China". In
that case, the items themselves are marked with the actual
country of origin but the packaging contains the alternative
country of origin designations. However, in the toy case, the
marking with the alternative countries of origin also stated that
the individual items contained the country of origin marking. In
another case, Customs ruled that an importer of automobile parts
may mark the packaging "Contents Imported, See Article for
Country of Origin". HQ 734491 (April 13, 1992).
Customs discussed the commingling and marking of
semiconductors in T.D. 75-187 (July 22, 1975). In that case
Customs allowed the marking in the alternative of semiconductors.
That case stated, however, "This ruling will apply only where all
of the commingled devices are made in foreign countries. The
ruling will not be applicable if foreign devices are commingled
with domestically-manufactured devices."
In HQ 734165 (December 2, 1991), Customs ruled that for LEGO
toy building blocks, U.S. products may be commingled with foreign
products and be marked in the alternative. The marking was
allowed because the blocks were small and difficult to mark;
fungible; and even though molded in different countries, the
initial pellets used to make the block were all made in the same
location.
Screws, nuts, bolts, and washers are different types of
industrial fasteners. In Headquarters Ruling Letter 723668,
C.S.D. 84-56 (December 12, 1983), Customs approved an alternative
method of marking for industrial fasteners. Customs, in C.S.D.
84-56, has allowed one exception to the rule not allowing marking
in the disjunctive. In C.S.D. 84-56, Customs allowed fasteners
to be marked "from one or more of the following countries...." to
indicate the country of origin of fasteners, where there were
many varieties from many countries. The major source countries
were required to be indicated. That ruling permits a country of
origin label which lists only the major source countries from
which a repackager acquired his stock. The label should list the
countries in the order of the greatest percentage of stock (by
weight or piece) to the least percentage of stock. Countries
from which a repackager obtains only small quantities of
fasteners need not be listed. This partial exemption from
Customs law was allowed to "eliminate the economic prohibitions
of strict compliance but preserve the repackager's obligation to
advise the ultimate purchaser of the foreign origin of the
repackaged fasteners." C.S.D. 84-56. See also HQ 732382
(November 20, 1989)(regarding how to mark the containers of
fasteners when a company commingles foreign and U.S. made
fasteners).
In each of the cases allowing alternative form of marking,
either the actual item was marked with its country of origin, or
the items were commingled thereby necessitating multiple
countries of origin. In the instant case, Whitesell is not
marking the fasteners themselves with their country of origin,
nor is Whitesell commingling the fasteners. Whitesell will
actually know the country of origin of the fasteners it is
putting in each box. Therefore, we do not find it necessary to
allow an alternative means of marking the boxes of fasteners. We
do not believe that the possibility of an error in placing a
country of origin label establishes sufficient grounds for
finding a legal exception to the marking requirements.
Moreover, section 134.46, Customs Regulations (19 CFR
134.46), requires that when the name of any city or locality in
the U.S., or the name of any foreign country or locality other
than the name of the country or locality in which the article was
manufactured or produced, appear on a imported article or its
container, there shall appear, legibly and permanently, in close
proximity to such words, letters or name, and in at least a
comparable size, the name of the country of origin preceded by
"Made in," "Product of," or other words of similar meaning.
Customs has ruled that in order to satisfy the close proximity
requirement, the country of origin marking must appear on the
same side(s) or surface(s) in which the name of the locality
other than the country of origin appears. See HQ 708994 (April
24, 1978). The purpose of 19 CFR 134.46 is to prevent the
possibility of misleading or deceiving the ultimate purchaser as
to the origin of the imported article. Section 134.36(b)
provides that no exceptions to marking required under 134.46
should be made.
All the boxes used by Whitesell have Whitesell's U.S.
address in Muscle Shoals, Alabama, printed on the side panel of
the box. The country of origin marking, even if allowed, appears
on the top of the box. For those boxes containing imported
fasteners, the country of origin must appear on the same side as
the U.S. address of Whitesell, preceded by the words "Made in" or
"Product of" or other similar words.
HOLDING:
Whitesell must mark the boxes of the imported fasteners with
their country of origin, without indicating that the box may also
contain domestic fasteners, as discussed above. The country of
origin must appear on the same side or panel as the U.S. address
of Whitesell, preceded by the words "Made in" or "Product of" or
other similar words, in similar sized print as used for the U.S.
address.
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is entered. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division