HQ 0733786 - Country of origin marking of imported T-shirts; 19 CFR 12.130(c); embroidery - United States International Trade Commision Rulings

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HQ 733786
December 10, 1990

MAR-2-05 CO:R:C:V 733786 KG

CATEGORY: MARKING

Ms. Vivian B. Harvey
Mariposa
1497 Belmont Road
Columbus, Ohio 43201

RE: Country of origin marking of imported T-shirts; 19 CFR 12.130(c); embroidery

Dear Ms. Harvey:

This is in response to your letter of September 1, 1990, requesting a country of origin ruling regarding imported T- shirts. A sample T-shirt was submitted for examination.

FACTS:

Your company purchases T-shirts made in the U.S. and ships them to Guatemala where they are embroidered by hand. The sample is a royal blue 100% cotton T-shirt embroidered with over 40 small figures of animals. Some animal figures contain several colors of thread. After being embroidered, the T-shirts are shipped back to the U.S. for sale. Because the T-shirts are made in the U.S., they each have a cloth label sewn into the neck which has the legend "Made in the U.S." on the front together with the size.

ISSUE:

What is the proper country of origin marking of a domestically made T-shirt embroidered in Guatemala?

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."

Section 12.130, Customs Regulations (19 CFR 12.130), provides country of origin requirements for textiles and textile products. According to 19 CFR 12.130(c), any product of the U.S. which is returned after being advanced in value or improved in condition abroad or assembled abroad may not, upon its return to the U.S., be considered a product of the U.S. Customs recently ruled in HQ 555760 (November 16, 1990), that U.S.-made T-shirts embroidered in Guatemala were advanced in value and improved in condition abroad and therefore, could not be considered a product of the U.S. and that the original label in the T-shirt which stated that the T-shirt was made in the U.S. must be removed. This case is indistinguishable from HQ 555760. The extent of the embroidering and the use of different colors of thread advances the T-shirt in value and improves it in condition. Therefore, pursuant to 19 CFR 12.130(c), the country of origin of the embroidered T-shirt would be Guatemala. The original country of origin label in the T-shirt must be removed, as it is an inappropriate label and would be misleading. The T-shirt must be marked to indicate to the ultimate purchaser in the U.S. that Guatemala is the country of origin. A label with a legend such as "Made in Guatemala, U.S.A. fabric" or "Product of Guatemala, U.S.A. fabric" would be acceptable.

HOLDING:

Pursuant to 19 CFR 12.130(c), the country of origin of the embroidered T-shirt would be Guatemala because the original T- shirt is advanced in value and improved in condition abroad. Therefore, for the purposes of 19 U.S.C. 1304 the T-shirt must be marked to indicate that Guatemala is the country of origin.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication is accurate and complete in every material respect. Should it subsequently be determined that the information furnished is not complete and does not comply with 19 CFR 177.9(b)(1), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished this may affect the determination of country of origin. Accordingly, it is recommended that a new ruling request be submitted in accordance with section 177.2. Customs Regulations (19 CFR 177.2).

Sincerely,

John Durant
Director,

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