HQ 0730932 - Country of origin marking requirements for rubber locks used on backhoe/loader buckets - United States International Trade Commision Rulings

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HQ 730932
November 16, 1988

MAR-2-05 CO:R:C:V 730932 jd

CATEGORY: MARKING

Mr. Claude Brosseau
A. N. Deringer, Inc.
30 West Service Road
Champlain, New York 12919-9703

RE: Country of origin marking requirements for rubber locks used on backhoe/loader buckets

Dear Mr. Brosseau:

This is in reply to your letter of December 1, 1987, concerning the country of origin marking requirements for rubber locks. The locks are used to hold the teeth of the bucket of a backhoe or loader.

FACTS:

According to your submission, your client imports rubber locks from Spain in lots of 200 or more. The locks are not individually marked as to country of origin because it is claimed that any variance in their dimensions caused by molding in the marking would make the locks useless. Stickers are not used since it would be "economically unfeasible" [sic] and "impracticle" [sic] should someone assemble a tooth before removing the sticker.

The teeth are sold to dealers in the U.S. in lots of 25 to 200 pieces. You wish to know if marking the outer container of the locks would satisfy country of origin marking requirements. You base your request for an exception to individual marking on { 134.32(c) and (o), Customs Regulations (19 CFR 134.32(c) and

ISSUE:

Does country of origin marking on the outer container of rubber locks, i.e., pieces used to hold the teeth on buckets of backhoes or loaders, satisfy the requirements of 19 U.S.C. 1304?

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 (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 a manner as to indicate to an ultimate purchaser
in the United States the English name of the country of origin of the article.

Section 134.32, Customs Regulations (19 CFR 134.32), lists various exceptions to the requirement that articles be individually marked. Pertinent to this discussion are { 134.32 (c) and (o) which exempt articles that cannot be marked either prior to or after importation because the expense would be economically prohibitive and { 134.32(d) which exempts articles for which the marking of the containers will reasonably indicate the origin of the articles.

With regard to imported articles intended to be repacked in retail containers after release from Customs custody, { 134.26, Customs Regulations (19 CFR 134.26), provides that the importer must certify to the district director that: (1) if the importer does the repacking, he shall not obscure any existing country of origin marking, or if the articles are not marked, the new containers shall be marked to indicate the origin of the articles; or (2) if the article is to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify that party in writing at the time of sale or transfer that any repacking of the article must comply with country of origin marking requirements.

It is the opinion of this office that you have not provided sufficient information upon which to grant an exemption from individual marking based on prohibitive economic expense. While we do not doubt the veracity of your statement that marking by means of placing labels on each lock would be economically prohibitive, that mere assertion, unsupported by some actual cost estimates, could never be the basis for granting an exception to individual marking. Further, we note that no reference is made to the possibility of placing each lock in a bag, using a hang tag, etc.

However, based on the situation you have described it would appear that the rubber locks are eligible for an exception to individual marking under { 134.32(d). It is stated that shipments of locks arrive from Spain in outer containers properly marked as to country of origin. If locks will reach ultimate purchasers in the United States in these original containers, or if lots which are repacked are marked as described in { 134.26, the marking on the outer containers will satisfy country of origin marking purposes. (See T.D. 74-122.)

HOLDING:

Rubber locks, i.e., pieces used to hold the teeth on buckets of backhoes or loaders, as described above, are not eligible for an exception to individual marking based on prohibitive economic expense. However, proper country of origin marking on the outer container of lots of rubber locks reaching the ultimate purchaser in the United States will satisfy the requirements of 19 U.S.C. 1304.

Sincerely,

Marvin M. Amernick
Chief, Value, Special Programs and

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