CLA-2-95:OT:RR:NC:N4:424
Ms. Gabriela Lockney
Hasbro Inc.
1 Hasbro Place
Providence, RI 02903
RE: The country of origin of the “Secret Lair, Magic: The Gathering” trading cards
Dear Ms. Lockney:
In your letter submitted October 7, 2021, you requested a country of origin ruling for Item number D07400000, “Secret Lair, Magic: The Gathering”, trading cards.
“Magic: The Gathering” is a tabletop and digital trading card game. The “Magic: The Gathering
Trading Card Game” combines collectable cards with a strategy game. Two or more players
battle each other utilizing trading cards depicting different characters, creatures, spells, and
lands. Each card contains a unique graphic image and a text box that explains the card’s game
mechanics. There are currently over 20,000 unique trading cards that make up the game. The “Secret Lair” is a direct-to-consumer product comprised of 6 specially curated cards illustrated by artists located in various countries.
According to the information provided with your request, all 6 of the trading cards, as well as the premium box and paperboard sleeve, will be printed using offset printing technology or digital printing technology and are then cut to size in their respective country of manufacture. The finished cards and packaging are shipped to a maquiladora in Mexico where the product will be packed for export.
Your submission indicates that, except for one card, which is produced in Japan, the above-described cards, the premium box and paperboard sleeve are manufactured in the United States (U.S.).
In Mexico, the assortment of 6 cards is packaged together for retail sale. Each assortment will contain 5 trading cards printed and cut to size in the U.S. and 1 card printed and cut to size in Japan. The cards are packaged in the premium box, then placed inside the paperboard sleeve that is sealed and ready for export to the U.S.
In 19 C.F.R. § 134.1(b), “country of origin" is defined as the country of manufacture, production or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of this part; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter will determine the country of origin.
To allow for a more seamless transition period, at this time, CBP continues to utilize the marking rules set forth in 19 C.F.R. Part 102, with the exception of 19 C.F.R. § 102.19, for purposes of country of origin marking with respect to goods from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11. Applied in sequential order, the required hierarchy establishes that the country of origin of a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because the cards are neither wholly obtained nor produced or produced exclusively from “domestic” materials. Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin determination, we look to section 102.11(a)(3). “Foreign material” is defined in section 102.1(e) as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.”
The applicable tariff shift requirement in section 102.20 for articles classified in subheading 9504.40-9506.29, HTSUS, is:
A change to subheading 9504.20 through 9506.29 from any other subheading, including another subheading within that group.
With respect to the “Secret Lair, Magic: The Gathering” line of trading cards at issue, we find that combining the Japanese card with the U.S. cards, and packaging, in Mexico the product remains classified in subheading 9504.40, HTSUS. The “Secret Lair, Magic: The Gathering” trading cards, do not meet the required tariff shift to be considered changed by manufacture for country of origin marking purposes.
In our view, section 102.11(b) or (c) are also not applicable as the cards are neither a set pursuant to General Rule of Interpretation 3, nor is there a single component(s) within the card assortment that imparts the essential character of the good. Consequently, Section 102.11(d) requires:
(d) Where the country of origin of a good cannot be determined under paragraph (a), (b) or (c) of this section, the country of origin of the good shall be determined as follows:
(d)(1) If the good was produced only as a result of minor processing, the country of origin of the good is the country or countries of origin of each material that merits equal consideration for determining the essential character of the good;
(d)(2) If the good was produced by simple assembly and the assembled parts that merit equal consideration for determining the essential character of the good are from the same country, the country of origin of the good is the country of origin of those parts; or
(d)(3) If the country of origin of the good cannot be determined under paragraph (d)(1) or (d)(2) of this section, the country of origin of the good is the last country in which the good underwent production.
Based on the facts presented in this case, the country of origin of the trading card assortment is determined by 19 CFR 102(d)(1), which indicates that if the good was produced only as a result of minor processing, the country of origin of the good is the country or countries of origin of each material that merits equal consideration for determining the essential character of the good. We note that the cards impart the essential character to the product and that the processing performed in Mexico consisting of packaging or packing is considered minor processing under 19 CFR 102.1(m). Therefore, the country of origin of the card assortment is the U.S. and Japan.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. 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 U.S. the English name of the country of origin of the article. 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. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. As the individual Japanese card component of the trading card assortment does not lose its identity as a result of being packaged together with the cards of U.S. origin in Mexico, the external packaging of the game should be marked in a conspicuous manner to indicate that the finished product contains a component that is made in Japan.
Under 19 U.S.C. §1304, it is only necessary to have a marking that indicates that the finished product contains cards of Japanese origin. Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the USA.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 C.F.R. § 177.9(b)(1). In the event that the facts or merchandise are modified in any way, you should bring this to the attention of U.S. Customs and Border Protection (CBP), and you should resubmit for a new ruling in accordance with 19 C.F.R. § 177.2.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Roseanne Murphy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division