HQ 0731700 - Country of origin marking of imported bows made from U.S. materials - United States International Trade Commision Rulings

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HQ 731700

May 4, 1990

MAR-2 05 CO:R:C:V 731700 EAB

CATEGORY: MARKING

Mr. Mortimer S. Schiff
Lawrence Schiff Silk Mills, Inc.
590 California Road
Quakertown, PA 18951

RE: Country of origin marking of imported bows made from U.S. materials

Dear Mr. Schiff:

This is in reply to your letter dated August 9, 1988, requesting a ruling on the country of origin marking requirements of bows imported from Mexico, made from U.S. ribbon sent abroad. We regret the delay in responding.

FACTS:

Your company manufactures ribbons and other woven narrow fabrics, and sells them along with bows and rosettes. Some of the bows and rosettes are made for you by another U.S. firm which has factories in Mexico. You deliver the spooled ribbon to the firm, which transports it to Mexico, where the ribbon is cut to length and tied into bows. You submitted a sample spool of ribbon and a sample package containing bows. The bows are packed per half-gross into separate envelopes, which are packed and shipped 100-300 envelopes per carton back into the U.S. You state that "We repack the bows in our cartons and sell to our customers here in the states along with ribbon on rolls that have never left the country. The [original] envelopes are stickered with labels indicating Mexico as the point of origin." You "would like to have these packages labeled as follows: '1/2 gross of Bows, Pattern 026-000-311, Ribbon made in U.S.A.'"

ISSUES:

(1) What is the country of origin of bows made in Mexico from ribbon of U.S. origin?

(2) What are the marking requirements of such bows (or their containers), when such bows are repacked and shipped together with spooled ribbon of U.S. origin, to your customers?

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 U.S. shall be marked in a con- spicuous place as legibly, indelibly and permanently as the na- ture 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 primary pur- pose of the country of origin marking statute 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 the product, if such marking should influence his will." United States v. Friedlaender & Co., 27 CCPA 297, 302, C.A.D. 104 (1940); National Juice Products Association v. United States, 10 CIT 48, 628 F. Supp. 978 (1986).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Rules for determining the country of origin of textiles and textile products are found in {12.130, Customs Regulations (19 CFR 12.130). As specifically provided in 19 CFR 12.130(c), any product of the U.S. which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article for the purposes of the Tariff Act of 1930, as amended, and merchandise which falls within the purview of Chapter 98, Subchapter II, Note 2, Harmonized Tariff Schedule of the United States (HTSUS), may not, upon its return to the U.S., be considered a product of the U.S.

Customs finds that the U.S. spooled ribbon was advanced in value in Mexico by the foreign processes of despooling the ribbon, cutting it to length, tying bows and packing the bows for shipment to the U.S. In view of this, we find the country of origin of the bows is Mexico.

With regard to the method of marking, you propose to mark the packages in which the bows are imported with a sticker marked "Mexico". After importation, the bows will be repackaged into cartons with rolls of ribbon of U.S. origin. You propose labelling the new package "Ribbon Made in U.S.A."

Three question must be addressed: 1) whether your proposed wording is acceptable; 2) whether the marking of the packages in which the bows are imported instead of the bows is acceptable; and, if so, 3) whether a sticker is acceptable marking.

With regard to the proposed wording ("Ribbon Made in U.S.A.") on the new carton, it is unacceptable because it does not clearly indicate that Mexico is the country of origin of the bows. If the cartons indicate that the rolls of ribbon are a product of the U.S.A., the cartons must also indicate that the bows are a product of Mexico. In this regard, Section 134.46, Customs Regulations (19 CFR 134.46) provides that in any case in which the letters "U.S.A." appear on an imported article or its container, there shall appear legibly and permanently in close proximity to such letters, and in at least a comparable size, the name of the country of origin preceded by "Made in,", "Product of," or other words of similar meaning, 19 CFR 134.46.

Customs finds that your proposed marking on the carton would not be in compliance with 19 CFR 134.46, since there does not appear in close proximity to the letters "U.S.A.", the name "Mexico" preceded by "Made in" or words of similar meaning. If the cartons refer to the origin of the rolls of ribbon, they should also be marked "Bows Made in Mexico." The packages in which the bows are imported may, however, be marked simply "Mexico".

With regard to the acceptability of marking the packages in lieu of the bows, articles generally excepted from individual country of origin marking are those articles for which the marking of the containers will reasonably indicate to the ultimate purchaser in the U.S. the origin of the articles, 19 CFR 134.32(d). The ultimate purchaser is the last person in the U.S. to receive the article in the form in which it is imported, 19 CFR 134.1(d). Pressure sensitive labels which are affixed in a conspicuous place and so securely that unless deliberately removed they will remain on the article (or its container) while it is in storage or on display and until it is delivered to the ultimate purchaser is an acceptable method of marking, 19 CFR 134.44(b).

Since no information was presented concerning who is the ultimate purchaser, we cannot determine whether this exception from individual marking is applicable and whether a sticker is acceptable.

For your information, as provided in 19 CFR 11.12b(a), tex- tile fiber products imported into the U.S. shall be labeled or marked in accordance with the Textile Fiber Products Identifica- tion Act (15 U.S.C. 70-70k), and the rules and regulations prom- ulgated thereunder by the Federal Trade Commission, unless exempt from marking or labeling under 19 U.S.C. 70i. Customs recommends that you contact the FTC.

HOLDING:

U.S. ribbon which is returned after having been cut to length, tied into bows and packaged has been advanced in value, and the country of origin of such bows is Mexico.

Proper marking of the containers in which the bows are packed in 1/2 gross lots requires the phrase "Bows Made in Mexico," or words of similar meaning if the label includes the letters "U.S.A.", and the phrase "Bows Made in Mexico" or words of similar meaning must be in close proximity to the letters "U.S.A.", and in at least a comparable size.

Insufficient information has been provided to determine whether the marking of the containers alone constitutes acceptable marking.

Sincerely,

Marvin M. Amernick, Chief
Value, Special Programs and
Admissibility Branch

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