MAR-2-05 CO:R:C:V 735503 RSD
Mr. Stephen Degiacomo
Sports Marketing Int'l, Inc.
1874 Center Street
Boston, Massachusetts 02132
RE: Country of origin marking for watches, marked on the back of
watch cases; movements; use of the phrase "assembled in"; 19 CFR
134.46; HQ 735474
Dear Mr. Degiacomo:
This is in response to your letter sent to our office by fax
transmission on February 18, 1994, regarding a proposed country of
origin marking for wrist watches. A copy of your proposed marking
for the watches was sent with your fax.
FACTS:
Your letter indicates that you propose to imprint the country
of origin marking on the back casings of watches you are importing
into the United States. The marking on the watch as illustrated
by the copy you faxed has two circles. Inside the inner circle the
letters SMi is in a bold type, and it is above the words "WATER
RESISTANT". Inside the outer circle the words "WATCH ASSEMBLED IN
CHINA" "JAPAN MOVEMENT" appear. The two phrases in the outer
circle are adjacent to each other in a circular fashion and are
separated by dots. On the faxed copy, the letters in both phrases
are approximately the same size. We have no indication of the size
of the marking or the method of the marking on the actual watch.
ISSUE:
Does the proposed marking as described above and illustrated
by the faxed copy which will be imprinted on the back of a watch
case satisfy the country of origin marking requirements for
watches?
FACTS:
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 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 the
marking on a watch "Swiss Movement Parts Assembled in China" was
not acceptable because it did not properly indicate the country of
manufacture of the watch movement to the ultimate purchaser.
However, in HQ 735474, we ruled that the marking "Movement
Philippines" "Assembled in Hong Kong" on a watch was acceptable.
We explained that 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.
We pointed out that the phrase "assembled in Hong Kong" provided
consumers with additional information regarding where the watch
was assembled or encased and it was not false or misleading.
Therefore, the country of origin marking "JAPAN MOVEMENT" "WATCH
ASSEMBLED IN CHINA", on the back of the watch case as shown on the
copy you sent, would be acceptable if this information is
accurate. In addition, the marking must be legible and conspicuous
so that the ultimate purchaser can easily find the marking and read
it without strain.
However, because there is a reference 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". We note that the proposed marking as
shown in the faxed copy is in a comparable size and in close
proximity to the word China. Therefore, the proposed marking meets
the requirements of 19 CFR 134.46
You should also be aware that section 134.43(b), Customs
Regulations (19 CFR 134.43(b)), in conjunction with section 11.9,
Customs Regulations (19 CFR 11.9), provides that watches must be
marked in accordance with the special marking requirements set
forth in Chapter 91, Additional U.S. Note 4 of the Harmonized
Tariff Schedule of the United States (HTSUSA) (19 U.S.C. 1202).
This note requires that any watch movement, or case provided for
in the subpart, whether imported separately or attached to any
article provided for in the subpart, shall not be permitted to be
entered unless conspicuously and indelibly marked by cutting, die-
sinking, engraving, stamping, or mold-marking (either indented or
raised), as specified in the provisions of this note. This marking
is mandatory. The Customs Service has no authority for granting
exceptions to the special marking requirements for watches.
Section (a) of Additional U.S. Note 4 requires that watch
movements shall be marked on one or more of the bridges or top
plates to show the manufacturer or purchaser; and, in words, the
number of jewels, if any servicing a mechanical purpose as
frictional bearings. Section (c) of Additional U.S. Note 4
requires that watch cases shall be marked on the inside or outside
of the back cover to show the name of the country of manufacture,
and the name of the manufacturer or purchaser. The country of
manufacture in these requirements refers to where the movements and
cases are manufactured rather than where the watch
was made. The special marking must be accomplished by one of the
methods specified in the Additional U.S. Note 4, and using stickers
is not an acceptable alternative.
HOLDING:
The proposed marking "JAPAN MOVEMENT" "WATCH ASSEMBLED IN
CHINA" for imported watches is acceptable provided that it
accurately describes the watches and the marking is legible,
conspicuous, and permanent. The marking shown on the faxed copy
satisfies the requirements of 19 CFR 134.46.
Sincerely,
John Durant, Director
Commercial Rulings Division