MAR-2 RR:NC:1:110 G87305
Mr. Harvey M. Applebaum
Mr. David R. Grace
Covington & Burling
1201 Pennsylvania Avenue, N.W.
P.O.Box 7566
Washington, D.C. 20044-7566
RE: COUNTRY OF ORIGIN MARKING OF IMPORTED REMANUFACTURED LASER PRINTER CARTRIDGES
Dear Mr. Applebaum and Mr. Grace:
This is in response to your letter dated February 12, 2001 requesting a ruling on whether the proposed marking "Made in China" is an acceptable country of origin marking for imported remanufactured laser printer cartridges. The remanufactured units will also contain the original country of origin marking, “Made in China” or “Made in Japan,” which is permanently molded into the plastic case. A marked sample was not submitted with your letter for review. However, a picture of the proposed country of origin marking on the retail box was faxed to this office on March 2, 2001. It is noted that the name and U.S. address of the distributor is also on the retail carton. The marking “Made in China” appears below the U.S. address in the same type and size as the address.
Your request is on behalf of Canon U.S.A., Inc. (CUSA). This issue concerns two Canon laser printer cartridge models: the Canon EP-E and the Canon EP-W. Canon Dalian Business Machines, Inc. in the People’s Republic of China will do the remanufacturing operation. The EP-E is manufactured in Japan or China and the EP-W is manufactured in Japan. It is noted that these are not simple toner cartridges, but contain both the development unit (D-Unit) and the cleaning unit (C-Unit). The spent (depleted of toner) cartridges are purchased as scrap by Canon Dalian. Unacceptable cartridges are discarded during an initial inspection at overseas collection points. Suitable cartridges are then packaged and shipped to the Canon Dalian factory in China. The cartridges are sorted by model number. The first step in the remanufacturing process in disassembly. This includes inspection, vacuum cleaning, and separation of the D-Unit and C-Unit subassemblies. The original country of origin marking is on the outer shell of the D-Unit. Next, the D-Unit and C-Unit are disassembled into component parts. They are broken down into over 30 individual parts and/or subassemblies. The components are cleaned, reconditioned and inspected. Any component that cannot be successfully reconditioned is removed and readied for material recycling. The reconditioned components are sorted by type into bins and the essential identity of the D-Unit, C-Unit and the cartridge is not maintained.
You note that the country of origin mark on the D-Unit mold (component) is not obliterated during this process. It is claimed that such a step would add significant expense, require new machinery and specially trained personnel.
The next step in the process is assembly. The assembly of the D-Unit includes the installation of a special foam part unique to the remanufacturing process and the addition of new toner using specially designed equipment. The toner is a product of Japan. The assembly of the C-Unit involves a new OPC drum (organic photoconductor or photosensitive drum) and other new components as well as reconditioned parts. The new drum for the EP-E model is produced in China, while other new components are produced in Japan. The new drum and components for the EP-W are produced in Japan. While it is noted that no single component or material appears to provide the essential character of these laser printer cartridges, such components and materials as the OPC drum and the toner are significant and essential to the operation of the cartridge. In the final assembly steps the D-Unit and C-Unit are coupled together, the cartridge is checked for leaks, cleaned, inspected, print tested for quality assurance, labeled, sealed in a black plastic bag and boxed in a sealed carton for retail sale. A special seal assembly, which is unique to the remanufacturing process, is also added to the EP-W models.
You indicate that after the cartridges are sealed in opaque black plastic bags, they and their original country of origin markings are not visible. CUSA proposes to mark the retail container “Made in China” as noted above. Marking indicating that the cartridges were remanufactured, as required by the FTC, will also be on the retail carton although the exact form and content has not been finalized. You have also asked that the cartridges themselves be exempted from marking under 19 C.F.R.134.32(d), because the marking of the container “will reasonably indicate the origin of the article.” Since the cartridge is normally not removed from the opaque sealed plastic bag until it is to be inserted into the laser printer, you indicate that the only country of origin marking visible to the ultimate purchaser at the time of acquisition is that on the retail container.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the
U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its 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.
Section 134.46, Customs Regulations (19 CFR 134.46), deals with cases in which the words "United States," or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced, appears on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin. In such a case, 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.
In order to satisfy the close proximity requirement, the country of origin marking must generally appear on the same side(s) or surface(s) in which the name or locality other than the actual country of origin appears.
As in HQ 561412, with regard to the country of origin of the remanufactured laser printer cartridges, it is noted that the operations as described in your submission constitute more than “minor processing” or “simple assembly.” The remanufacturing in China adds significant value to the remanufactured laser printer cartridges and accounts for most of the cost of the finished cartridges. In particular the extensive disassembly, cleaning, refurbishing, extensive assembly, replacement of essential components such as the OPC drum, and recharging with toner appear sufficient to cause a substantial transformation from a scraped spent cartridge into a fully functional toner charged cartridge. Therefore, the country of origin of the remanufactured EP-E and the EP-W will be China.
With regard to the cartridges which retain the original country of origin marking “Made in China,” since this marking is not in conflict with the determined country of origin of the remanufactured cartridges, no further marking will be required on these cartridges. However, it is determined that the original country of origin marking “Made in Japan” may cause confusion as to the actual country of origin of the remanufactured cartridges. In a telephone conference with Mr. David Grace and faxed confirmation on March 8, 2001, this office was informed that Canon has determined that it has the ability to apply glue-backed labels to the outer casing of its remanufactured cartridges that would completely cover the “Made in Japan” engravings. Because the engravings are impressed into the outer casing, the proposed label would completely obscure the old marking. This label would state “Made in China.” The label would have a degree of permanence such that it would remain on the cartridge until it reached the ultimate purchaser in the United States. Therefore, it is determined that the proposed marking of these cartridges is acceptable under Section 134.46, Customs Regulations (19 CFR 134.46).
The proposed marking of the retail cartons containing the imported remanufactured laser printer cartridges, as described above, satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the imported laser printer cartridges when the cartridges are marked as indicated above.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Eileen S. Kaplan at 212-637-7019.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division