HQ 0733592 - Country of origin marking of imported sweaters - United States International Trade Commision Rulings

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HQ 733592
August 22, 1990

MAR-2-05 CO:R:C:V 733592 KG

CATEGORY: MARKING

Andrew P. Vance, Esq.
Barnes, Richardson & Colburn
475 Park Avenue South
New York, N.Y. 10016

RE: Country of origin marking of imported sweaters

Dear Mr. Vance:

This is in response to your letter of June 7, 1990, requesting a country of origin ruling on behalf of American International Knitters Corp., regarding imported sweaters.

FACTS:

Your client imports sweaters made from panels that are knit to shape in China, Taiwan or Korea. The panels will then be shipped to the Commonwealth of the Northern Mariana Islands ("CNMI") where they will be assembled into sweaters by looping or sewing. The finished sweaters will then be washed, packed and shipped to the U.S.

ISSUE:

Whether the legends "Made in China, finished in Northern Mariana Islands (U.S.A.)" or "Assembled in Northern Mariana Islands (U.S.A.), knit in China" would be acceptable country of origin markings for imported sweaters made as described above.

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 imported into the U.S. 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 in the U.S. the English name of the country of origin of the article. The Court of International Trade stated in Koru North America v. United States, 701 F.Supp. 229, 12 CIT (CIT 1988), that: "In ascertaining what constitutes the country of origin under the marking statute, a court must look at the sense in which the term is used in the statute, giving reference to the purpose of the particular legislation involved. The purpose of the marking statute is outlined in United States v. Friedlaender & Co., 27 CCPA 297 at 302, C.A.D. 104 (1940), where the court stated that: "Congress intended that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will."

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Treasury Decision 90-17, published in the Federal Register on March 1, 1990 (55 F.R. 7303), announced a change of practice to conform the rules of origin for textile products for all purposes to section 12.130, Customs Regulations (19 CFR 12.130). Pursuant to 19 CFR 12.130, the country of origin of a sweater is the country where the panels are knit. If the panels are knit in one country and assembled in a second country, the first country would be considered the country of origin of the sweater.

In HQ 733323 (May 2, 1990), Customs determined that any acceptable marking for sweaters knit in China must clearly indicate that China is the country of origin. The phrase "Knit in China. Assembled in Hong Kong." was found to clearly indicate that China is the country of origin and therefore, this phrase was ruled to be acceptable for country of origin marking purposes. Similarly, Customs ruled in HQ 733534 (June 7, 1990), that the phrase "Handknit in China" clearly indicates that China is the country of origin and would not cause any confusion as to the origin of any imported product so marked.

Customs treats the CNMI as a territory or possession of the United States. Accordingly, products of the CNMI are excluded from country of origin marking requirements. HQ 729704 (September 12, 1986).

If the sweater panels were knit in China and assembled in the CNMI, the country of origin of the finished sweater would be China in accordance with 19 CFR 12.130. Therefore, the two legends you proposed, which would clearly indicate that China is the country of origin and that the sweaters are then assembled and finished in the CNMI, which is considered a territory or possession of the U.S., are acceptable.

HOLDING:

The two legends you proposed for the imported sweaters described above, are acceptable for country of origin marking purposes.

Sincerely,

Marvin M. Amernick
Chief, Value, Special Programs

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