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 > 1991 HQ Rulings > HQ 0732498 - HQ 0732964 > HQ 0732808

Previous Ruling Next Ruling



HQ 732808


December 12, 1989

MAR 2-05 CO:R:C:V 732808 NL

CATEGORY: MARKING

John Swauger
Managing Director (Purchasing)
The Roadster Factory
P.O. Box 332
Armagh, PA 15920

RE: Country of Origin Marking of Auto Parts

Dear Mr. Swauger:

This is in response to your letter of October 9, 1989, in which you request a blanket exemption from country of origin marking for automotive parts imported by your company. It is not within our authority under section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), to grant blanket exemptions. However, the ruling which follows outlines how your company may obtain some modifications to the country of origin marking requirements.

FACTS:

The Roadster Factory imports replacement parts for imported automobiles from a number of countries, and then sells them, largely by mail order, to customers in the U.S. Customs officials at Pittsburgh, Pennsylvania have issued a number of marking notices regarding these imports, having found that some of the parts were not properly marked with their countries of origin at the time of importation. After entry the parts are warehoused. When a customer places an order a label is generated for each part which displays part number, description, customer name and number, and location in the warehouse. In 1988 the Roadster Factory added the capability of printing country of origin information on the label accompanying each part. Some of the parts are packed in envelopes to which the labels are affixed, while others are apparently shipped with the labels directly affixed to them. You state that the label system insures that the marking is always in a location which is easy for the retail customer to find, and the wording on the statement
and the size of the print is always consistent. It is your position that the label system makes the labelling of the parts prior to importation redundant. You have submitted samples of the labels.

ISSUE:

Under what circumstances can Customs approve marking labels affixed after importation as satisfying 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 United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its 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.

Unless one of the exceptions applies, imported articles must be individually marked at the time of importation. If they are not, Customs will issue a marking notice requiring either that the goods be redelivered to Customs custody or that they be remarked. Among the exceptions to the requirement that imported articles be individually marked at the time of importation is 19 U.S.C. 1304(a)(3)(D), which provides that an article may be excepted if its container will reasonably indicate its country of origin to the ultimate purchaser. For such an exception to be approved pursuant to a headquarters ruling as provided in Part 177, Customs Regulations (19 CFR Part 177), we require the importer to demonstrate that the imported article will, in all foreseeable circumstances, reach the ultimate purchaser in the marked container in which it was imported. See HQ 729075 (January 13, 1986).

It is evident that if an imported article is to be repacked after importation, it is not possible for the importer to offer the assurances necessary to support the approval of a 19 U.S.C. 1304(a)(3)(D) exception pursuant to a headquarters ruling. However, section 134.34, Customs Regulations (19 CFR 134.34), offers importers an alternative route to approval of a 19 U.S.C. 1304(a)(3)(D) exception. The difference is that because the article does not reach the ultimate purchaser in the marked container in which it was imported, a continuing Customs supervisory role is necessary. Such supervision cannot be directed from Customs Headquarters, but necessarily must originate with the district and must be within the discretionary control of Customs officers on the site.

Section 134.34 provides that the exception may be authorized in the discretion of the district director provided that: the containers in which the articles are repacked will indicate the origin of the articles; the importer arranges for Customs supervision of the repacking or provides verification satisfactory to Customs that the repacking results in acceptable country of origin marking prior to liquidation; and that the liquidation is not deferred more than 60 days. The discretion of the district director is broad. He may determine whether the marking of the repacked containers will comply with 19 U.S.C. 1304. He may determine whether direct supervision, certification, verification, or review of samples is necessary to accomplish the purposes of 19 U.S.C. 1304. He may exercise the the discretion to extend the 60-day liquidation period.

Your letter indicates that the district director has deemed the approval of a blanket exemption to be beyond his authority. To the extent that there is no blanket exemption available under 19 U.S.C. 1304 which can be approved either by Headquarters or the district director, this is accurate. However, the district director has broad discretion to determine the circumstances under which a 19 U.S.C. 1304(a)(3)(D) exception from country of origin marking may be authorized for importers engaged in repacking operations. For example, the district director would be within the scope of his discretion in approving the labels you have submitted as samples on the basis that they constitute adequate marking for the containers of the repacked articles. The district director would be acting within the scope of his discretion in determining that because the marking of the repacked articles will be adequate, and all the imported articles will be so repacked, the individual articles need not be marked at the time of importation. Further, the district director would be acting within the scope of his discretion in determining that the 19 U.S.C. 1304(a)(3)(D) exception may be approved for all entries made over an extended or indefinite period of time, rather than on an entry-by-entry basis. An important element in the exercise of the district director's discretion is his assessment of whether the company requesting the exception can be relied upon to carry through on its undertakings. Another factor to be considered is whether the district has adequate resources to provide the continuing supervision necessary to ensure proper country of origin marking after importation.

HOLDING:

There is no blanket exemption from country of origin marking under 19 U.S.C. 1304. Pursuant to 19 CFR 134.34 the district director may, in the exercise of his discretion, determine the
circumstances under which a 19 U.S.C. 1304(a)(3)(D) exception from country of origin marking may be authorized for importers engaged in repacking operations.

Sincerely,

Marvin M. Amernick
Chief, Value, Special

Previous Ruling Next Ruling