CLA-2 OT:RR:CTF:TCM H147197 RES
Mr. John Peterson
Neville Peterson LLP
17 State Street – 19th Floor
New York, NY 10004
RE: Reconsideration of New York Ruling Letter N132564, dated December 24, 2010; Country of Origin Marking of Certain Imported Toy Building Blocks.
Dear Mr. Peterson:
This is in response to your letter dated January 26, 2011, on behalf of your client Mega Brands Inc., (“Mega”), requesting that U.S. Customs and Border Protection (“CBP”) reconsider New York Ruling Letter (“NY”) N132564, dated December 24, 2010. In NY N132564, CBP ruled that the imported Toy Building Blocks required special country of origin marking pursuant to 19 CFR § 134.46. CBP has determined that NY N132564 is incorrect.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI, notice of the proposed action was published on February 27, 2013, in Volume 47, Number 10, of the Customs Bulletin. CBP did not receive any comments during the notice period.
FACTS:
Mega Brands imports “Mega Bloks” Children Block Toys (“toy blocks”) from Canada into the United States. The toy blocks are manufactured in Canada and China. These articles are plastic building blocks and other small toys that are assembled by a child.
Mega Brands requested a ruling on the proper country of origin marking for the toy blocks. The toy blocks are packaged in two different cardboard box containers, which are sold at retail in their imported form. Both boxes have pictures of the blocks and small toys in different scenes on the front. Printed on both boxes at the top left corner in a big red and blue cartoon font are the words “MEGA BLOKS.” One box has a small description printed in English and several other languages of the toys contained inside, e.g. “2-in-1 Station to Truck * Estracion 2 en 1 para camion . . . ,” and printed in a cartoon-like font are the words “play n go.” On the front of the other box, at about left-of-center, the phrase “Collect them all!” is printed in English and several other languages. Both boxes have printed across the bottom of the front, in about a 1.5 inch wide strip section, set off with a white background and with black lettering, the following: the “MEGA” trademark; the words “Mega Brands Inc.” with the company’s Canadian address listed under the company name; and written in English and several other languages the phrase “COMPONENTS MADE IN CANADA AND CHINA.”
On the back of one box, are the phrases: “©2010, MEGA Brands Inc. ® & ™ MEGA Brands Inc. EN This toy conforms to: ASTM F963-08 U.S., Canadian Hazardous Products Act CEN Standards E.N. 71. Products and colors may vary”; “Keep this information.”; “Most models can be built one at a time.”; “Do not give packaging materials to a child.”; “51 Pieces.”; and “Proof of purchase.” All of these phrases are written in English and several other languages. In addition, the phrase “Keep this information” (in English and several other languages) is enclosed in a rectangular box with thin black borders and has the letters “CE” in a large stylized font next to the words “MEGA Brands Europe NV” with the Belgium address of Mega Brands underneath it. Lastly, there is the barcode and the symbols for recycling printed on the back of the box. These phrases and symbols cover the entire back of one box.
On the back of the second box, are the phrases: “©2009, MEGA Brands Inc. ® & ™ MEGA Brands Inc. EN This toy conforms to: ASTM F963-08 U.S., Canadian Hazardous Products Act CEN Standards E.N. 71. Products and colors may vary”; “Keep this information.”; and “Most models can be built one at a time.” In addition, the phrase “Keep this information” (in English and several other languages) is enclosed in a rectangular box with thin black borders and has the letters “CE” in a large stylized font next to the words “MEGA Brands Europe NV” with the Belgium address of Mega Brands underneath it. There are no barcodes or recycling symbols on the back of the box. The phrases and symbols cover one quarter of the back of the box in the top left corner.
In NY N132564, the findings in regard to the adequacy of the country of origin markings were described as follows:
While you describe in detail the purpose of the CE mark in Europe, its purpose and function would not be apparent to a consumer in the U.S. The references to Europe and Belgium are preceded by the phrase “Keep this information.” A U.S. consumer would not conclude the stated purpose and function of the foreign references based on this wording. The CE mark with MEGA Brand’s Belgium address and the reference to Europe may mislead or deceive the ultimate purchaser in the United States as to the actual country of origin of the item. Therefore, we find that the special marking requirements of 19 CFR 134.46 are triggered.
ISSUE:
What are the country of origin marking requirements for the imported children’s toy blocks?
LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304 (2011)), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, 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 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." United States v. Friedlander & Co., 27 C.C.P.A. 297 at 302; C.A.D. 104 (1940) (emphases added).
Part 134, U.S. Customs and Border Protection (CBP) Regulations (19 C.F.R. § 134 (2011)) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b) defines “country of origin” as:
[T]he 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 [the marking regulations]…
Section 134.46 states in pertinent part:
In any case 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 location 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 appear 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 of the article, 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.
Mega Brands asserts that the toy building blocks packaging has adequate and proper country of origin marking to inform the ultimate purchaser of the origin of the articles. Mega Brands states that the presence of the Belgium address of its European headquarters does not trigger § 134.46, because it is not displayed in a manner confusing to a reasonable consumer trying to discern the country of origin of the toy blocks.
Pursuant to § 134.46, country of origin markings are required to be in close proximity of the name of any foreign country or locality other than the country or locality in which an article was manufactured if the words or phrases relating to the foreign country or locality are misleading or deceiving the ultimate purchaser as to the actual country of origin of the article.
In the case of the toy blocks at issue here, because there is a Belgium address relating to Mega Brands’ European headquarters and the “CE” symbol, on the back of the boxes, the issue is whether this printed information may mislead or deceive an ultimate purchaser of the toy blocks articles as to where the toy blocks were actually manufactured, which is in Canada and China.
Upon examination of the country of origin markings on the front of the boxes and the way the Belgian address and CE symbol are printed on the back of the boxes, CBP concludes that a reasonable ultimate purchaser would not be misled or deceived as to the toy blocks’ provenance of manufacture and production.
The first thing an ultimate purchaser would observe when shopping at a toy store for the Mega Brands toy blocks is the front of the box, because the front is what stores display facing out to customers. The country of origin marking on the front of the boxes is clearly displayed in black capital letters that is a block font on a white background and is set off from the rest of the front of the box which is decorated in a light blue and with images of the toys inside. An ultimate purchaser would easily discern from examining the front of the box that the toy blocks are manufactured in Canada and China.
Given the prominent marking on the front, the Belgian address on the back of the box, would not reasonably mislead or deceive an ultimate purchaser as to where the toy blocks are manufactured.
In regard to the “CE” symbol, there is nothing about this symbol that would indicate to an ultimate purchaser that it has anything to do with the country of origin of the toy blocks. Even if an ultimate purchaser did not know what the “CE” symbol meant, they reasonably would not assume that it had anything to do with the country of origin of the toy blocks. If anything, the size and the unconventional font of the “CE” symbol gives the impression that it is just that, a symbol relating to something about the toy blocks but not something related to the provenance of the manufacturing of the contents of the boxes. Even the phrase “Keep this Information” does not in any way infer or hint at any type of country of origin for the toy blocks inside the box. Rather, the common sense meaning of this phrase is to retain the address of the Mega Brands headquarters for informational purposes and, if one is familiar with the meaning of “CE”, to note that it conforms with the European health, safety, and environmental requirements.
Therefore, pursuant to § 134.46, because we do not find that the presence of the corporate address and the “CE” symbol on the back of the box may be misleading or deceiving, no additional country of origin marking is required on the back of the box.
HOLDING:
Pursuant to 19 U.S.C. § 1304, the containers the MEGA BLOKS Children’s Block Toys are packaged in are properly marked with the country of origin.
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 CBP officer handling the transactions.
EFFECTS ON OTHER RULINGS:
NY N132564, dated December 14, 2010, is hereby REVOKED.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division