HQ 0731088 - Country of origin marking requirements for polypropylene mesh bags - United States International Trade Commision Rulings

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HQ 731088

June 3, 1988

MAR-2-05 CO:R:C:V 731088 jd

CATEGORY: MARKING

Jack P. Caolo, Esq.
3600 LTV Center LB 136
2001 Ross Avenue
Dallas, Texas 75201-2997

RE: Country of origin marking requirements for polypropylene mesh bags

Dear Mr. Caolo:

This is in reply to your letters of March 1, and April 22, 1988, requesting a ruling on the country of origin marking requirements applicable to polypropylene mesh bags.

FACTS:

According to your submission, your client imports polypropylene mesh bags, empty and laid flat, in bales of several thousand each. Each bale is bound firmly with a wrapping, and the wrapping is imprinted with the words "Made in China".

Your client's customers are packers of perishable fresh produce. These packers purchase bags baled in units of 1000 and use the bags as containers in which to send the produce to market. You characterize the bags as disposable and not the kind that would typically be reused after the produce is consumed.

We note a discrepancy between your two letters, one stating bales consist of several thousand bags, the other stating bales consist of 1000 bags. However, we assume there is no problem with large bales being divided into smaller bales after importation because of your affirmative statement that, "[B]ales of polymesh bags are not broken open until after they are sold and delivered to the ultimate user. [Your client], or a reseller for [your client], sells the bale to the ultimate user of the bags while they are bound in the bale. [Your client] prohibits persons who purchase the bales from breaking them down and reselling the bags."

We further note that your letters reference some difficulties your client has experienced at some Customs districts concerning importations of these bags. You must follow the procedure for internal advice set forth in { 177.11(b)(2), Customs Regulations (19 CFR 177.11(b)(2)), or protest in { 174.11, Customs Regulations (19 CFR 174.11), for any matter you may wish to pursue regarding those prior shipments. However, in light of the economic hardships mentioned in your letters (and in phone calls), we can address your questions regarding prospective shipments.

ISSUE:

Are packers of fresh produce the ultimate purchasers of bales of polypropylene mesh bags used to pack produce for market, such that country of origin marking on the bale wrappers satisfies 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 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 the ultimate purchaser the English name of the country of origin of the article. Section 134.1(d), Customs Regulations (19 CFR 134.1(d)), defines "ultimate purchaser" as "generally the last person in the U.S. who will receive the article in the form in which it was imported."

Section 134.24, Customs Regulations (19 CFR 134.24), refers to containers or holders not designed or capable of reuse. Paragraph (b) specifically refers to disposable containers that are imported empty and states that when such containers are packed and sold in multiple units, country of origin marking requirements may be met by marking the outermost container which reaches the ultimate purchaser.

It is the opinion of this office that fresh produce packers are the ultimate purchasers of bales of polypropylene mesh bags. When a packer purchases a bale and uses the bags to market produce, each bag becomes a disposable container used to present produce for sale; the bag itself is no longer a separate article of commerce. Accordingly, the country of origin marking on the bale wrapper satisfies marking requirements in that the marking is reaching the ultimate purchaser of the bags.

HOLDING:

Fresh produce packers who purchase bales of polypropylene mesh bags and use the bags to pack produce for market are the ultimate purchasers of the bags. Country of origin marking on the bale wrappers, provided it is conspicuous, legible, indelible and permanent, and conveys the English name of the country of origin of the bags, satisfies the requirements of 19 U.S.C. 1304.

Sincerely,

Marvin M. Amernick

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