MAR-20-5 CO:R:C:V 733990 RSD
Mr. Alfredo Perez
Frontier Products Co.
2910 San Bernardo
Laredo, Texas 78040
RE: Country of origin marking requirements for imported flint
rock arrowheads, stones; 19 CFR 134.32(c); economically
prohibitive
Dear Mr. Perez:
This is in response to your letter of December 2, 1990 and
your follow up letters of February 11, 1991 and March 12, 1991
requesting a binding ruling on the country of origin marking
requirements for flint rock arrowheads imported from Mexico. Two
sample arrowheads accompanied the submission.
FACTS:
Frontier Products Co. (Frontier) is in the import/export and
mail order business, selling western, indian, and muzzleloading
supplies. Frontier has been importing flint rock arrowheads from
Mexico through the port of Laredo. The arrowheads are designed
to look primitive and are made out of stone. They are sold as
souvenirs through souvenir stands. The arrowheads are imported
in bags containing 1,000 arrowheads, which are marked with "MADE
IN MEXICO." The individual arrowheads are taken out of the bag
and are sold loose. Frontier had been importing between 5,000
and 8,000 arrowheads a week.
Local Customs officials advised Frontier that the each
arrowhead must be individually marked to indicate its country of
origin. Frontier is marking the arrowheads with a sticker to
indicate its country of origin. Your letter indicates that it
costs $325.10 to import 6,000 arrowheads a month without a
country of origin sticker. Placing the stickers on the
arrowheads increases the cost of importing the 6,000 arrowheads
by $36, of which $18 is for the cost of the stickers and $18 is
for the labor costs of putting the stickers on the arrowheads.
You indicate that the major problem in marking the arrowheads is
the time it takes to put the stickers on the arrowheads. You
claim that the delay caused by putting the stickers on the
arrowheads has resulted in a reduction in the amount of
arrowheads imported into the U.S. from 24,000 to 6,000. This has
caused a significant reduction of monthly profit from $1000.68
down to $179.40. You further state that the marking is done by
two regular workers and one part-time worker and that you have to
pay your employees, who have other duties, overtime to do the
marking.
ISSUE:
Whether the arrowheads are excepted from country of origin
marking under 19 CFR 134.32(c) covering articles that cannot be
marked prior to shipment to the U.S. except at an expense
economically prohibitive of its importation?
LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304) provides that, unless excepted, every article of foreign
origin imported into the U.S. shall be marked in a conspicuous
place as legibly, indelibly, and permanently as the nature of the
article (or 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., 27 C.C.P.A. 297 at 302 (1940). 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. As provided in section 134.41(b), Customs
Regulations (19 CFR 134.41(b)), the country of origin marking is
considered conspicuous if the ultimate purchaser in the U.S, is
able to find the marking easily and read it without strain. That
section further provides that the degree of permanence should be
at least sufficient to insure that in any reasonably foreseeable
circumstance the marking shall remain on the article until it
reaches the ultimate purchaser unless it is deliberately removed.
An article may be excepted from marking under 19 U.S.C.
1304(a)(3)(c) and 19 CFR 134.32(c), if the article cannot be
marked prior to shipment to the U.S. except at an expense
prohibitive of its importation. You indicate that your cost of
importing 6,000 arrowheads is $323.10 ($.054/per arrowhead).
Placing a sticker on the arrowheads increases your cost by only
$36 (about $.006 per arrowhead). The profit realized from
selling the arrowheads without the marking was about $.04 per
arrowhead. We do not find that this cost of marking qualifies as
an economically prohibitive one. Although the increased costs
associated with marking on a low cost item like the arrowheads
may be significant, in this case we do not find them economically
prohibitive. It appears that the major problem associated with
marking the arrowheads is that the increased time involved in
marking the arrowheads causes a sizeable reduction in the number
of arrowheads that can be imported into the U.S. In order to
comply with the marking law, it may be necessary for you to hire
additional employees for the purpose of marking the arrowheads.
HOLDING:
The arrowheads do not qualify for an exception from
individual marking under 19 U.S.C. 1304(a)(3)(c) and 19 CFR
134.32(c). They must be individually marked to indicate their
country of origin.
Sincerely,
John Durant, Director
Commercial Rulings Division