MAR-2-05 RR:TC:SM 559849 MLR

Mr. Bruce Berhow
General Manager
Malco Products, Inc.
14080 State Hwy. 55 NW
Annandale, MN 55302-0400

RE: Country of origin marking for sheet metal screws; Japan; Taiwan; repacking

Dear Mr. Berhow:

This is in reference to your letter of May 7, 1996, requesting a ruling concerning the country of origin marking requirements for sheet metal screws imported from Japan and Taiwan.

FACTS:

You indicate that Malco will import sheet metal screws of the same part number and performance specifications from Japan and Taiwan. Initially, only 25 percent of the screws will be imported from Taiwan, but this percentage could increase to between 50-75 percent. The screws will be stored according to their part number rather than their country of origin. Some of the screws will be repackaged into smaller packages for resale to your customers and you wish to mark the container "Made in Japan or Taiwan".

ISSUE:

What is the proper country of origin marking of the imported sheet metal screws.

LAW AND ANALYSIS:

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. 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. Friedlaender & Co. Inc., 27 CCPA 297, 302, C.A.D. 104 (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 134.33, Customs Regulations (19 CFR 134.33), excepts certain articles from individual country of origin marking in accordance with 19 U.S.C. 1304(a)(3)(J) and only requires that the outermost container in which the article ordinarily reaches the ultimate purchaser be marked with the country of origin. Screws are listed as one of the articles entitled to this exception.

Generally, Customs policy is that absent other circumstances, it is not acceptable for purposes of 19 U.S.C. 1304 to mark an article in the disjunctive, e.g., "Product of ____ or ____". However, in C.S.D. 84-56 (December 12, 1983), Customs allowed an exception to the rule not allowing marking in the disjunctive. In C.S.D. 84-56, Customs allowed industrial fasteners (i.e., screws, nuts, bolts and washers) 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. Only the major source countries from which a particular repackager acquired his stock were required to be listed on the container label. It was also found that the list should begin with that country from which a distributor obtains the greatest percentage (by weight or by piece) of his stock. It was also not necessary to list all countries from which a particular repackager obtained only relatively small quantities of fasteners. Customs allowed this partial exemption 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."

In Headquarters Ruling Letter (HRL) 734165 dated December 2, 1991, Customs considered U.S.- and foreign-made LEGO bricks and shapes commingled together in containers and then, by a random process, packaged into retail packages. The phrase "Made in Denmark, Switzerland, and U.S.A." was approved since it was highly probable that a LEGO set would contain some pieces from all three countries, and, therefore, the marking on the container would properly inform the ultimate purchaser of the countries of origin in the LEGO set

In this case, you have indicated that the screws will be stored according to their part number and not according to their country of origin, and that you will be importing at least 25 percent from either Taiwan or Japan. Therefore, it appears that it is highly probable that each package of screws will contain screws from both Japan and Taiwan. It also does not appear that the result reached in C.S.D. 84-56 applies in this case since you will only be importing from two source countries. Accordingly, rather than the marking "Made in Japan or Taiwan", it is our opinion that the label on the container should read "Made in Japan and Taiwan".

Additionally, please be aware that the requirements of 19 CFR 134.25 (copy enclosed) must be satisfied, which sets forth the certification requirements if the screws are imported in bulk and repackaged into retail packages. The importer must certify to the port director on entry that the articles intended to be repacked in new containers for sale to an ultimate purchaser after their release from Customs custody, will be marked, or that he will notify the purchaser or transferee of such articles who does the repacking of such marking requirements.

HOLDING:

Based on the facts submitted, screws imported from Japan and Taiwan which are commingled and repackaged into smaller containers may be marked "Made in Japan and Taiwan" provided the certifications requirements of 19 CFR 134.25 are satisfied. A copy of this ruling letter should be attached to the entry documents filed at the time the goods are 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
Tariff Classification Appeals
Division