MAR-2-05 CO:R:C:V 734085 RSD
Ms. Carolyn Hsu
Rifle Jeans USA
1385 Broadway #302
New York, New York 10018
RE: Country of origin marking of jeans manufactured in Saipan;
Northern Mariana Islands, U.S. Possessions, FTC; 19 CFR 134.32(l)
Dear Ms. Hsu:
This is in response to your letter of February 6, 1991,
requesting a ruling on the country of origin marking requirements
for jeans manufactured in Saipan from imported fabric.
FACTS:
Rifle Jeans USA is planning to import jeans manufactured in
Saipan from imported fabric. The jeans will have a sewn label
with an American Flag sewn next to the marking "Made In USA of
Imported Fabric."
ISSUE:
Can jeans manufactured in Saipan be marked with a label which
states "Made in the USA from Imported Fabric?"
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.
Saipan is part of the Northern Mariana Islands. Commencing
on July 18, 1947, the U.S. became the administering authority of
the Trust Territory of the Pacific Islands, area including the
Northern Mariana Islands (Trusteeship Agreement, 61 Stat. 3301,
T.I.A.S. No. 1665, U.N.T.S. 189). In accordance with provisions
of the trust agreement to promote self-government for the peoples
for the trust territory, on March 24, 1976, the U.S. signed a
Covenant to Establish a Commonwealth of the Northern Mariana
Islands in Political Union with the United States, Pub L. 94-241,
90 Stat. 263. That covenant became fully effective as of
November 4, 1986 and replaced the trusteeship agreement
(Presidential Proclamation 5564 of November 3, 1986 and E.O.
12572 of November 3, 1986).
Article 6 of the Covenant, section 603(c), provides that
"Imports from the Northern Mariana Islands into the customs
territory of the United States will be subject to the same
treatment as imports from Guam into the customs territory of the
United Sates."
In HQ 725787, July 25, 1984, Customs ruled that products of
Guam are excepted from country of origin marking requirements of
19 CFR 134.32(l), as products of possessions the U.S. Customs
has also previously ruled that the Northern Mariana Islands are a
territory or possession of the U.S. and products therefrom would
be excluded from the country of origin marking requirements. See
HQ 731028, July 18, 1988.
The Federal Trade Commission has jurisdiction over the
approval of "Made in the U.S.A." markings. However, the Federal
Trade Commission, pursuant to rules and regulation issued under
the authority of the Textile Fiber Product Identification Act,
stated in a Staff opinion letter that garments made in Saipan of
imported fabric should be labeled "Made in USA of Imported
Fabric" (FTC letter to Andrew P. Vance, Esq. dated February 26,
1988). See HQ 731028, July 18, 1988.
You also inquire whether an American flag can be sewn next
to the "Made in USA of Imported Fabric" label of the jeans would
be allowed. Because there is no specific provision prohibiting
it, for Customs purposes the placing of an American flag next to
the label is permissible.
You should be aware that this ruling only applies if the
processing in Saipan results in a substantial transformation of
the fabric in accordance with 19 CFR 12.130. Cutting of fabric
into parts and the assembly of those parts into a completed
garment generally results in a substantial transformation; a
simple assembly of cut pieces generally does not result in a
substantial transformation (see 19 CFR 12.130(e)(i)(iv)).
HOLDING:
Jeans that are a product of the Northern Mariana Islands are
exempt from the country of origin marking requirements of 19
U.S.C. 1304 upon importation into the U.S. and in accordance with
FTC requirements may be marked with the statement "Made in the
U.S.A. from imported Fabric." The sewing of an American flag
next to the label is permissible.
Sincerely,
John Durant, Director
Commercial Rulings Division