ENT-1-07-CO:R:C:E 224671 CB
Mr. James Tang
BJ Customs Brokerage Co.
P.O. Box 91034
Los Angeles, CA 90009-1034
RE: Loh Sun International Inc.; relabelling of cigarettes with
Surgeon General's warning; 26 U.S.C. 5713; 15 U.S.C. 1333
Dear Mr. Tang:
This is in response to your letter of April 21, 1993, on
behalf of your client Loh Sun International Inc., wherein you
requested a ruling on the following fact situation:
FACTS;
According to your letter, your client imports several brands
of British cigarettes from Singapore. Each of the packaged
cigarettes have the country of origin label as required. However,
because these cigarettes were originally intended for Asian
markets, in most instances they do not bear the required Surgeon
General's warning label as required by law. One of the reasons the
importer was not able to have the goods labelled in Singapore was
the fact that the cigarettes were in a bonded warehouse in
Singapore and no manipulation of any kind is allowed.
Your client is seeking permission from Customs to relabel the
product with the Surgeon General's warning label at your client's
warehouse and to pay the necessary costs to cover any Customs
verification of the labelling. You state that relabelling in a
foreign trade zone or bonded warehouse would pose a financial
hardship on your client.
ISSUE:
Whether the proposed procedure is permissible?
LAW AND ANALYSIS:
All cigarettes imported into the United States must be marked
in accordance with 26 U.S.C. 5723 and 15 U.S.C. 1331 et seq.
("the Cigarette Act"). Section 4 of the Cigarette Act imposes
labelling requirements on the manufacturers, packagers, and
importers of cigarettes. Section 4(c) requires that any company
wishing to sell cigarettes within the United States must submit a
letter to the Federal Trade Comission explaining how it will comply
with the warning label display requirements.
Cigarettes that do not bear the required markings are
considered restricted, not prohibited, merchandise. They are
considered restricted because cigarettes not permitted entry for
labelling violations may be entered if the defect in labelling is
cured. Restricted merchandise is permitted entry into a Customs
Bonded Warehouse (CBW) or a Foreign Trade Zone (FTZ) only.
Altering the labelling or packaging of tobacco products within the
Customs territory of the U.S. is not permitted unless the party
doing so has obtained a permit from the Bureau of Alcohol, Tobacco
and Firearms. See 26 U.S.C. 5713. Permits are issued only to
those parties engaged in the full range of activities associated
with tobacco products manufacturing. Permits will not be granted
solely for relabelling activities. Therefore, if your client
wishes solely to relabel the cigarettes, it will be unable to do
so within the Customs territory of the United States.
However, applying the warning label to the cigarettes can be
done in an FTZ which is outside of the Customs territory.
Cigarettes altered in a zone are permitted entry into the United
States, provided all other applicable laws and requirements are
satisfied.
HOLDING:
Cigarettes which do not bear the Surgeon General's Warning are
restricted merchandise. Altering the cigarette package, within the
Customs territory, requires a permit from the Bureau of Alcohol,
Tobacco and Firearms. However, relabelling may be conducted in a
foreign trade zone without the need for a permit.
Sincerely,
John Durant, Director
Commercial Rulings Division