United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1990 HQ Rulings > HQ 0732822 - HQ 0733678 > HQ 0733661

Previous Ruling Next Ruling


HQ 733661

August 30, 1990

MAR-2-05 CO:R:C:V 733661 KG

CATEGORY: MARKING

Edward B. Ackerman, Esq.
Siegel, Mandell & Davidson, P.C.
One Whitehall Street
New York, N.Y. 10004

RE: Country of origin marking of imported locksets

Dear Mr. Ackerman:

This is in response to your letter of July 11, 1990, requesting a country of origin ruling on behalf of Schlage Lock Co., regarding imported locksets assembled in Mexico.

FACTS:

Your client imports locksets and parts of locksets from Mexico, comprised of both U.S. and Mexican made components. You assert that your products are entitled to a partial duty exemption under subheading 9802.00.80 of the Harmonized Tariff Schedule of the United States ("HTSUS") and may be entitled to duty-free entry as qualifying products under the Generalized System of Preferences ("GSP"). You plan to enter the imported locksets as duty-free under the GSP.

ISSUE:

Whether marking the imported locksets and parts of locksets, which are entered as duty-free under the GSP, with the legends "Assembled in Mexico from U.S. and Mexican components" or "Assembled in Mexico" would satisfy the country of origin marking requirements.

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.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 10.22, Customs Regulations (19 CFR 10.22), states that assembled articles entitled to the duty exemption under subheading 9802.00.80 of the Harmonized Tariff Schedule of the United States ("HTSUS"), are considered products of the country of assembly for the purposes of country of origin marking. If an imported assembled article is made entirely of American-made materials, the United States origin of the material may be disclosed by using a legend such as "Assembled in ____ from material of U.S. origin," or a similar phrase.

The crux of the issue presented is whether an imported article entitled to the partial duty exemption under HTSUS subheading 9802.00.80 but actually entered duty free under another provision could be marked in accordance with 19 CFR 10.22 to satisfy the country of origin marking requirements. This provision provides a standard for country of origin determinations that applies only to assembled articles that are "entitled" to the partial duty exemption under HTSUS subheading 9802.00.80. The provision does not state that the assembled article must be entered under HTSUS subheading 9802.00.80 to apply. A fundamental rule of statutory construction is that if the language of a statute is clear and unambiguous, it must be held to mean what it plainly expresses. Sutherland Stat Cons sec. 406 (4th Ed). The term "entitled" is defined in Webster's New World Dictionary (2nd College Edition), means "having a right to." In this case, it is asserted that the imported assembled articles have a right to or are eligible for a partial duty exemption under HTSUS subheading 9802.00.80. If, in fact, the imported assembled articles do have such a right or eligibility, the articles are within the ambit of 19 CFR 10.22 and should be marked accordingly.

As you are aware, Customs ruled in HQ 731507 (October 17, 1990), that the marking "Assembled in _______ from U.S. and Japanese materials" is an acceptable country of origin marking under 19 CFR 10.22 for products entitled to the partial duty exemption under HTSUS subheading 9802.00.80 and made out of both U.S. and Japanese components. The ruling clearly stated that "the origin of the materials comprising the assembled article may be added to the country of origin determination, whether or not the article consists entirely of U.S. materials." This case is similar to HQ 731507 because the assembled articles are made up of both U.S. and foreign materials and the importer desires that the country of origin marking reflect the content of the materials. Pursuant to the provisions of 19 CFR 10.22, if the imported locksets or parts of locksets are entitled to the partial duty exemption under HTSUS subheading 9802.00.80, they can be marked "Assembled in Mexico," or "Assembled in Mexico of U.S. and Mexican components."

HOLDING:

The language of 19 CFR 10.22 is interpreted to mean that imported assembled articles are within the ambit of 19 CFR 10.22 if such articles are entitled or eligible for the partial duty exemption under HTSUS subheading 9802.00.80. There is no requirement that the goods are actually entered under that subheading for 19 CFR 10.22 to apply.

If the imported locksets or parts of locksets are entitled to the partial duty exemption under HTSUS subheading 9802.00.80, they can be marked "Assembled in Mexico," or "Assembled in Mexico of U.S. and Mexican components."

Sincerely,

Marvin M. Amernick
Chief, Value, Special Programs

Previous Ruling Next Ruling

See also: