MAR-2-05 CO:R:C:V 735474 RSD
Timothy C. Stanceu, Esq.
Hogan & Hartson
555 13th, N.W.
Washington, D.C. 20004
RE: Country of origin marking for watches assembled in one country
using movements manufactured in a second country; use of the phrase
"assembled in"; HQ 735251; HQ 718311
Dear Mr. Stanceu:
This is in response to letter submitted by Timex Corporation
(Timex) requesting a ruling on the country of origin marking
requirements for imported watches assembled in one country using
a movement manufactured in a second country. You have informed us
that this ruling should be addressed to your office rather than
directly to Timex.
FACTS:
Timex intends to import watches that are assembled ("encased")
in one country using watch movements that are manufactured in
another country. Timex proposes to mark such watches with the
notation "Movement (English Name of country)" in close proximity
to the notation "Assembled in (English name of the country in which
the watch is assembled)". For example, a watch assembled in Hong
Kong from a movement manufactured in the Philippines would be
marked as follows:
Movement Philippines
Assembled in Hong Kong
Although no sample was submitted, Timex represents that the
marking would be legibly and conspicuously placed on the case back
of the watches, and the two country names will be in close
proximity to each other. The watches will be imported through the
port of New York and possibly other ports.
ISSUE:
Is the proposed marking of a watch indicating the country
where the watch movement is manufactured and a second country where
the watch is assembled acceptable?
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, and permanently as the nature of the article (or
container) will permit, in such 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 of 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).
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR
134.41(b)), mandates that the ultimate purchaser in the U.S. must
be able to find the marking easily and read it without strain.
It has been the position of the U.S. Customs Service for many
years that the country of origin of a watch or clock is the country
of manufacture of the watch or clock movement. The addition of the
hands, dial, case, or watchband add definition to the time piece
but do not change the character or use of the watch or clock
movement which is the "guts" of the watch or clock. Accordingly,
in order to satisfy the requirements of 19 U.S.C 1304, a watch must
be legibly marked with the name of the country of manufacture of
the watch movement in a conspicuous place.
In a ruling issued to Timex, HQ 718311 (January 26, 1982),
Customs held that the proposed marking, "Assembled in Taiwan"
"Movement Japan" marked in close proximity on the case back of a
watch would satisfy the requirements of section 304 of the Tariff
Act of 1930, as amended (19 U.S.C. 1304).
In HQ 735251 (October 7, 1993), Customs ruled that the phrase
"Assembled in" was not sufficient to designate the country of
origin of an article under 19 U.S.C. 1304. We also held that
marking on watch "Swiss Movement Parts Assembled in China" was not
acceptable because it did not properly indicate the country of
manufacture of the watch movement.
These two rulings concerned different issues. HQ 735251 dealt
with the question of whether the phrase "Assembled in", without any
additional marking, before a country name would be sufficient to
indicate the country of origin of a watch. It did not hold that
phrase "assembled in" could never appear on a watch which was
otherwise properly marked with its country of origin. Furthermore,
it did not revoke or modify HQ 718311 and thus HQ 718311 is still
in effect.
In this case, the country of origin of the watch is properly
indicated by the marking "Movement Philippines". The phrase
"assembled in Hong Kong" provides consumers with additional
information regarding where the watch was assembled or encased and
it is not false or misleading. 19 U.S.C. 1304 does not prohibit
additional information, such as where certain processing is done
or the name of the country where some parts are made, from being
put on the article, provided that the article is properly marked
with its country of origin and the information is not false or
misleading.
However, if reference is made to another country or locality
other than the actual country of origin, the requirements of 19
CFR 134.46 must be met. 19 CFR 134.46 provides that in any case
in which the words "U.S." or "American," the letters "U.S.A.," any
variation of such words or letters, or the name of any city or
locality in the U.S., or the name of any foreign country or
locality other than the country or locality in which the article
was manufactured or produced, appear on an imported article or its
container, there shall appear, legibly and permanently, in close
proximity to such words, letters or name, and in at least a
comparable size, the name of the country of origin preceded by
"Made in," "Product of" or other words of similar meaning.
In HQ 735251, Customs indicated that in the case of watches, the
word "Movement" or an abbreviation for it would be the equivalent
of "Made in".
HOLDING:
The proposed marking "Movement Philippines" "Assembled in Hong
Kong" for imported watches is acceptable provided that the
requirements of 19 CFR 134.46 are satisfied.
Sincerely,
John Durant, Director