CLA-73:RR:NC:1:115 C88019

Mr. John Reich

Cataract Customhouse Brokerage Inc.

2094 Grand Island Boulevard Grand
Island, New York 14072

RE: The tariff classsification and country of origin marking for a lanyard key holder from Canada.

Dear Mr. Reich:

In your letter dated May 20,1998 you requested a tariff classification and country of origin marking ruling.

The sample a jumbo lanyard with "Attitude is everything"imprinted throughout and has a metal clip at the end.The

lanyard is used as a key chain.The lanyard is made of polyproplyene and the metal clip out of steel.The lanyard will be imported by Reader's Digest and given to Public Schools.The schools will give one lanyard to any student free for every magazine subscription they sell.The lanyards are packed in a box and banded in bunches of 500 in the box.The outside of the box is marked with the country of origin as well as each bunch.

Classsification will be based on the General Rules of Interpretation 3(c) that states if an item cannot be classified in other sections, then they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

The applicable subheading for the lanyard key clip will be 7326.908585, Harmonizes Tariff Schedule of the United States (HTS), which provides for other articles of iron or steel,other, other. The rate of duty will be free.

In your request you ask if the marking on the outside of the box is marked with the country of origin along with the bunch of 500 is sufficient. Both Reader's Digest and the Public Schools would receive the lanyards marked in this manner. Under Part 134 of the Customs Regulations covering Country of Origin Marking all items unless excepted by law under Section 304, Tariff Act of 1930 requires 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 its 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.

This office would agree that Readers'Digest is the "ultimate purchaser" and under Section 134.1(4)--if the imported is distributed as a gift the recipient is the "ultimate purchaser",unless the good is a good of a Nafta Country. In that case, the purchaser of the gift is the "ultimate purchaser". Reader' Digest meets the criteria. The individual lanyard need not be marked but the outer container must be marked and properly sealed.

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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 Melvyn Birnbaum at 212-466-5487.

Sincerely,


Robert B. Swierupski
Director, National
Commodity Specialist Division