HQ 0733879 - Country of origin marking of plastic baseballs sold to schools, military bases and institutional organizations; ultimate purchaser; 19 U.S.C. 1304(a)(3)(D); 19 CFR 134.32(d); 19 CFR 134.1(d); Friedlaender & Co.; Koru North America; 710493; 733678; 733702 - United States International Trade Commision Rulings

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HQ 733879

November 28, 1990

MAR-2-05 CO:R:C:V 733879 EAB

CATEGORY: MARKING

Ms. Margaret Kelcey
Customs Coordinator
BSN Sports
P.O. Box 7726
Dallas, Texas 75209

RE: Country of origin marking of plastic baseballs sold to schools, military bases and institutional organizations; ultimate purchaser; 19 U.S.C. 1304(a)(3)(D); 19 CFR 134.32(d); 19 CFR 134.1(d); Friedlaender & Co.; Koru North America; 710493; 733678; 733702

Dear Ms. Kelcey:

This is in reply to your letter dated October 18, 1990, in which you request a ruling on the proper country of origin marking of plastic baseballs of foreign origin.

FACTS:

Your company imports unmarked plastic baseballs that are designed to be used in pitching machines. They are imported in one gross, sealed cardboard cartons marked "Made in Taiwan". You sell the plastic baseballs only in the original, unopened cartons to schools, military bases and institutional organizations for their own use. You request a ruling excepting the plastic baseballs from individual country of origin marking.

ISSUE:

Whether individual imported plastic baseballs are excepted from country of origin marking.

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 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. 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. Section 134.1(d), Customs Regulations (19 CFR 134.1(d)), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser.

In this case, the schools, military bases and institutions purchase these plastic baseballs from you in their imported form and for their own use. We find, therefore, that the schools, military bases and institutions are the ultimate purchasers of the imported plastic baseballs. See, e.g., Legal Determination 79-0382 (HQ 710493, July 17, 1979), airlines were the ultimate purchasers of imported dinnerware to be used to serve in-flight meals; HQ 733678 (August 30, 1990), hospitals and hospital supply distributors were the ultimate purchasers of imported surgical towels to be used by them; and HQ 733702 (October 15, 1990), institutions and schools were the ultimate purchasers of imported shuttlecocks purchased by them for their own use and not for resale, in their original, unopened and properly marked containers.

Pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d), excepted from individual marking requirements are imported articles for which the marking of the containers will reasonably indicate the origin of the articles. This exception applies in cases where the article is imported in a properly marked container and Customs officials at the port of entry are satisfied that the ultimate purchaser will receive the article in its original, unopened and properly marked container. Accord, Legal Determination 79-0382, HQ 733678 and HQ 733702, supra. In this case, the plastic baseballs are sold to the schools, military bases and institutions in their original, unopened and properly marked containers.

HOLDING:

The ultimate purchaser of the imported plastic baseballs is the school, military base or institution that will use them in their imported condition and not otherwise process or sell them. The plastic baseballs may be excepted from country of origin marking pursuant to 19 CFR 134.32(d), provided that Customs officials at the port of entry are satisfied that they will be used only in the manner described above and that the school, military base or institution will receive them in their original, unopened containers that are marked to indicate the country of origin of the plastic baseballs. Statements to this effect may be required by the district director of Customs at the port of entry.

Sincerely,

Marvin M. Amernick, Chief
Value, Special Programs and

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