MAR-02 RR:TC:SM 560629 MLR
Robert C. Beasley, Esq.
Paws Incorporated
5440 E. County Road 450 N.
Albany, Indiana 47320-9728
RE: Country of Origin Marking; garments; 19 CFR 134.32(f)
Dear Mr. Beasley:
This is in reference to your letter dated August 27,
1997, concerning the country of origin marking
requirements of certain t-shirts and sweatshirts.
FACTS:
As indicated on the Notice to Mark form provided to
you by Customs at JFK, 72 t-shirts and 12 sweatshirts were
imported without country of origin marking or fiber
content labeling. You also state that the garments may be
imported at another port. You state that the garments
were manufactured abroad by your licensee (in this case
Elms Marketing) and that the garments will not be sold in
the U.S. You also state that the garments are imported as
pre-production samples for Paws' verification which is
required pursuant to the "Garfield Licensing Agreement--International" (submitted for our review). You have also
submitted a letter from Elms Marketing stating that the
goods are made in the U.K. and are 100 percent cotton, and
that they are not for resale but are design approvals
only. A proforma statement is also enclosed indicating
that the "adult cotton t-shirts" are "samples for approval
and/or showroom use not for resale" and are of British
origin.
ISSUE:
Whether the garments may be excepted from country of
origin marking pursuant ot 19 CFR 134.32(f).
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 imported in 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 country of origin marking requirements and
exceptions of 19 U.S.C. 1304.
In T.D. 54640(6) (July 15, 1958), Customs ruled that
shirts, blouses, coats, sweaters and similar wearing
apparel must be legibly and conspicuously marked with the
name of the country of origin by means of a fabric label
or label made from natural or synthetic film sewn or
otherwise permanently affixed on the inside center of the
neck midway between the shoulder seams or in that
immediate area or otherwise permanently marked in that
area in some other manner. Additionally, the Federal
Trade Commission
requires a label with the country of origin and fiber
content to be located at the neckline.
Section 134.1, Customs Regulations, defines ultimate
purchaser as generally the last person in the U.S. who
will receive the article in the form in which it was
imported.
Section 134.32, Customs Regulations, lists the general
exceptions to the marking requirements, providing, in
pertinent part:
(f) Articles imported for use by the importer and not
intended for sale in their imported or any other form;
and
(h) Articles for which the ultimate purchaser must
necessarily know the country of origin by reason of
the circumstances of their importation or by reason of
the character of the articles even though they are not
marked to indicate their origin.
Before we can determine whether any of the above
exceptions apply, we must decide who is the ultimate
purchaser. In Headquarters Ruling Letter (HRL) 732082 of
March 14, 1989, Customs ruled on the country of origin
requirements of imported articles to be used by the
importer as samples to be shown to prospective customers
to solicit sales of similar articles. Customs determined
that the ultimate purchaser was the importer who uses the
samples in his business, and not the prospective customer.
As such, the imported samples could be excepted from
marking under 19 CFR 134.32(f).
In this case, the information submitted indicates that
Paws is the importer who will verify that the garments
have been produced according to the terms of their
licensing agreement, and it is stated that the garments
will not be sold in the U.S. Furthermore, information has
been submitted from Elms Marketing, the licensee, that the
fiber content is 100 percent cotton and that the garments
are of British origin. Accordingly, we find that under
these circumstances Paws is the ultimate purchaser and the
garments may be excepted from country of origin marking
pursuant to 19 CFR 134.32(f).
Additionally, we have contacted Mr. Bret Smart at the
Federal Trade Commission and he informs us that the
garments may be excepted from the fiber content labeling
requirements as the garments will not be offered for
retail sale in the U.S.
HOLDING:
Based upon the information submitted and pursuant to 19
CFR 134.32(f), we find that since the garments are not
offered for retail sale in the U.S., that the garments may
be excepted from the country of origin marking requirements.
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