CLA-2 OT:RR:CTF:TCM H283715 LWF
David P. Sanders
Cassidy Levy Kent (USA) LLP
2000 Pennsylvania Ave., NW
Suite 3000
Washington, D.C. 20006
Re: Country of origin marking for imported Apple iPhone smartphone devices; 19 U.S.C. § 1304; 19 C.F.R. § 134
Dear Mr. Sanders:
This is in response to your request, on behalf of Apple, Inc. (“Apple”), dated February 15, 2017, for a prospective ruling by U.S. Customs and Border Protection (CBP) concerning the country of origin marking requirements for imported Apple iPhone smartphone devices. Specifically, you ask that CBP determine whether proposed country of origin marking, “Designed in California. Assembled in China,” on the outermost surface of Apple iPhone retail packaging containers satisfies the country of origin marking requirements set forth in 19 U.S.C. § 1304 and 19 C.F.R. § 134. For the reasons explained below, this office finds that Apple’s proposal satisfies the applicable CBP country of origin marking requirements.
FACTS:
Apple imports iPhone smartphone devices into the United States in individual containers that are packaged for retail sale. Each container holds one iPhone and is wrapped in clear plastic. All print on the container is visible and legible through the outer plastic wrapping. The imported iPhone remains in its container, which serves as the retail packaging of the device, until it reaches the ultimate purchaser.
Apple states that it intends to permanently print a country of origin marking on the outermost surface of each iPhone retail container, so that the ultimate purchaser is made aware of the country of origin of the iPhone device. Specifically, Apple has submitted a picture of the retail packaging of an iPhone 7 smartphone device, upon which the phrase “Designed by Apple in California. Assembled in China,” is permanently printed and made visible on the outermost surface of the container.
ISSUE:
Whether the proposed marking of Apple iPhone retail packaging containers satisfies the country of origin marking requirements set forth in 19 U.S.C. § 1304 and 19 C.F.R. § 134.
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 United States 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 United States, 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.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).
Part 134 of the U.S. Customs and Border Protection (CBP) Regulations (19 C.F.R. § 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Specifically, Section 134.11, CBP Regulations (19 C.F.R. § 134.11), states:
§ 134.11 Country of origin marking required.
Unless excepted by law, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), requires that every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article, at the time of importation into the Customs territory of the United States. Containers of articles excepted from marking shall be marked with the name of the country of origin of the article unless the container is also excepted from marking. 19 C.F.R. § 134.11.
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Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. 19 C.F.R. § 134.1(d) defines the "ultimate purchaser" generally as the last person in the U.S. who will receive the article in the form in which it was imported. See 19 C.F.R. § 134.1.
Additionally, 19 C.F.R. § 134.41(b) states that the ultimate purchaser in the United States must be able to find the marking easily and read it without strain. The degree of permanence of the marking should be at least sufficient to insure that in any reasonably foreseeable circumstance, the marking shall remain on the article (or its container) until it reaches the ultimate purchaser unless it is deliberately removed. The marking must survive normal distribution and store handling. See 19 C.F.R. § 134.41.
With respect to Apple’s inquiry concerning marking of the outermost surface of Apple iPhone retail packaging containers, this office notes that Section 134.32, CBP Regulations (19 C.F.R. § 134.32), sets forth a limited list of conditions that may render an article excepted from the marking requirements set forth in 19 C.F.R. §134.11. Specifically, 19 C.F.R. § 134.32(d), addresses the marking of articles imported in containers:
§ 134.32 General exceptions to marking requirements.
The articles described or meeting the specified conditions set forth below are excepted from marking requirements (see subpart C of this part for marking of the containers):
[…]
(d) Articles for which the marking of the containers will reasonably indicate the origin of the articles[.] 19 C.F.R. § 134.32.
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The general rules for marking articles excepted under Section 134.32, CBP Regulations (19 C.F.R. § 134.32), is set forth in 19 C.F.R. § 134.22(a), which provides as follows:
§ 134.22 General rules for marking of containers or holders.
Contents excepted from marking. When an article is excepted from the marking requirements by subpart D of this part, the outermost container or holder in which the article ordinarily reaches the ultimate purchaser shall be marked to indicate the country of origin of the article whether or not the article is marked to indicate its country of origin. 19 C.F.R. § 134.22.
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Upon review of the applicable country of origin marking requirements and exceptions implemented under Part 134 of the CBP Regulations (19 C.F.R. § 134), this office concludes that Apple’s proposed marking of imported iPhone retail packaging containers satisfies the marking requirements and exceptions of section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304). Specifically, because the iPhone devices are imported in retail packaging containers that are conspicuously and permanently marked with the phrase, “Designed by Apple in California. Assembled in China,” this office has determined that the packaged articles are described by the general exception to marking requirements set forth in 19 C.F.R. § 134.32(d) and satisfy the general rules for the marking of containers, as provided for by 19 C.F.R. § 134.22. Moreover, this office finds that the proposed marking of the iPhone retail packaging containers meet the broader requirements of 19 C.F.R. § 134, because the ultimate purchaser in the United States will be able to find the country of origin marking easily and read it without strain.
In concluding that Apple’s proposed country of origin marking satisfies the requirements of 19 C.F.R. § 134, this office notes that the reference, “Designed by Apple in California,” triggers special marking requirements under 19 C.F.R. § 134.46, because the reference to a location in the United States may mislead or deceive the ultimate purchasers as to the actual country of origin of the articles. Section 134.46, CBP Regulations (19 C.F.R. § 134.46), states as follows:
§134.46 Marking when name of country or locality other than country of origin appears.
In any case in which the words “United States,” or “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or location in the United States, 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, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin of the article, 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. 19 C.F.R. § 134.46.
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Upon review of the proposed country of origin marking on the outermost retail packaging container of the Apple iPhone devices, this office finds that the phrase “Assembled in China” appears legibly and in close proximity to the to the words “Designed in California.” Accordingly, CBP concludes that the country of origin marking, “Designed in California. Assembled in China,” meets the special marking requirements of 19 C.F.R. § 134.46.
HOLDING:
The proposed country of origin marking, “Designed in California. Assembled in China,” permanently printed on the outermost surface of Apple iPhone retail packaging containers, satisfies the country of origin marking requirements set forth in 19 U.S.C. § 1304 and 19 C.F.R. § 134.
A copy of this ruling letter should be attached to the entry documents filed at the time the merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transactions.
Sincerely,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch