CLA-2-96:RR:NC:N2:221 G87357
Mr. Kevin Egan
E. Besler & Company
P.O. Box 66361
Chicago, IL 60666-0361
RE: The tariff classification of contractor's pencils from Canada and replacement leads from China.
Dear Mr. Egan:
In your letter dated February 12, 2001, on behalf of Johnson Level & Tool, you requested a tariff classification ruling.
The sample submitted with your request is identified as a contractor’s pencil, item #3400. The article is a propelling or sliding pencil consisting of a pencil lead inside a plastic pencil shell. The lead is extended or retracted by sliding a button on the side of the pencil shell. Item 3410 is a set of replacement leads. The samples are being returned as you requested.
The applicable subheading for the sliding pencils will be 9608.40.8000, Harmonized Tariff Schedule of the United States (HTS), which provides for propelling or sliding pencils (for example, mechanical pencils): other. The rate of duty will be free.
The applicable subheading for the replacement leads will be 9609.20.4000, HTS, which provides for pencil leads, black or colored: over 1.5 mm in maximum cross-sectional dimension. The rate of duty will be free.
You also request a ruling on the country of origin for the sliding pencils and the leads. The plastic pencil shell is manufactured in Canada. The pencil leads are produced in China and shipped in bulk to Canada. Some of the Chinese origin leads are inserted in the Canadian manufactured pencil shells. Other Chinese origin leads are packaged in Canada for retail sale as replacement leads for the contractor’s pencils. The pencil leads lose their identity when they are assembled into the pencil shells, and the country of origin of the sliding pencils, including the lead that has been inserted into them, is Canada. The country of origin of the pencil leads that are merely packaged in Canada remains China. Therefore, the replacement pencil leads should be marked to indicate China, rather than Canada, as their country of origin.
The blister package holding the pencil and the blister package holding the replacement leads are both printed with the words, “Mfd. in Canada by JOHNSON LEVEL & TOOL, MEQUON, WISCONSIN USA, MONTREAL, QUEBEC, CANADA.” The letters in the phrase “Mfd. in Canada” are significantly smaller in size than the letters in the other place names.
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.
Section 134.46, Customs Regulations (19 CFR 134.46), deals with cases 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 locality 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, appears 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. In such a case, 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 order to satisfy the close proximity requirement, the country of origin marking must generally appear on the same side(s) or surface(s) in which the name or locality other than the actual country of origin appears. Please note that the phrase “Made in Canada,” for the pencils, or “Made in China,” for the replacement leads, should appear in letters at least equal in size to the letters in the other place names on the blister card.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Joan Mazzola at 212-637-7034.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division