HQ 0734085 - Country of origin marking of jeans manufactured in Saipan; Northern Mariana Islands, U.S. Possessions, FTC; 19 CFR 134.32(l) - United States International Trade Commision Rulings

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HQ 734085
June 3, 1991

MAR-2-05 CO:R:C:V 734085 RSD

CATEGORY: MARKING

Ms. Carolyn Hsu
Rifle Jeans USA
1385 Broadway #302
New York, New York 10018

RE: Country of origin marking of jeans manufactured in Saipan; Northern Mariana Islands, U.S. Possessions, FTC; 19 CFR 134.32(l)

Dear Ms. Hsu:

This is in response to your letter of February 6, 1991, requesting a ruling on the country of origin marking requirements for jeans manufactured in Saipan from imported fabric.

FACTS:

Rifle Jeans USA is planning to import jeans manufactured in Saipan from imported fabric. The jeans will have a sewn label with an American Flag sewn next to the marking "Made In USA of Imported Fabric."

ISSUE:

Can jeans manufactured in Saipan be marked with a label which states "Made in the USA from Imported Fabric?"

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. Congressional intent in enacting 19 U.S.C. 1304 was 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." United States v. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940). C.A.D. 104 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S, is able to find the marking easily and read it without strain.

Saipan is part of the Northern Mariana Islands. Commencing on July 18, 1947, the U.S. became the administering authority of the Trust Territory of the Pacific Islands, area including the Northern Mariana Islands (Trusteeship Agreement, 61 Stat. 3301, T.I.A.S. No. 1665, U.N.T.S. 189). In accordance with provisions of the trust agreement to promote self-government for the peoples for the trust territory, on March 24, 1976, the U.S. signed a Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States, Pub L. 94-241, 90 Stat. 263. That covenant became fully effective as of November 4, 1986 and replaced the trusteeship agreement (Presidential Proclamation 5564 of November 3, 1986 and E.O. 12572 of November 3, 1986).

Article 6 of the Covenant, section 603(c), provides that "Imports from the Northern Mariana Islands into the customs territory of the United States will be subject to the same treatment as imports from Guam into the customs territory of the United Sates."

In HQ 725787, July 25, 1984, Customs ruled that products of Guam are excepted from country of origin marking requirements of 19 CFR 134.32(l), as products of possessions the U.S. Customs has also previously ruled that the Northern Mariana Islands are a territory or possession of the U.S. and products therefrom would be excluded from the country of origin marking requirements. See HQ 731028, July 18, 1988.

The Federal Trade Commission has jurisdiction over the approval of "Made in the U.S.A." markings. However, the Federal Trade Commission, pursuant to rules and regulation issued under the authority of the Textile Fiber Product Identification Act, stated in a Staff opinion letter that garments made in Saipan of imported fabric should be labeled "Made in USA of Imported Fabric" (FTC letter to Andrew P. Vance, Esq. dated February 26, 1988). See HQ 731028, July 18, 1988.

You also inquire whether an American flag can be sewn next to the "Made in USA of Imported Fabric" label of the jeans would be allowed. Because there is no specific provision prohibiting it, for Customs purposes the placing of an American flag next to the label is permissible.

You should be aware that this ruling only applies if the processing in Saipan results in a substantial transformation of the fabric in accordance with 19 CFR 12.130. Cutting of fabric into parts and the assembly of those parts into a completed garment generally results in a substantial transformation; a simple assembly of cut pieces generally does not result in a substantial transformation (see 19 CFR 12.130(e)(i)(iv)).

HOLDING:

Jeans that are a product of the Northern Mariana Islands are exempt from the country of origin marking requirements of 19 U.S.C. 1304 upon importation into the U.S. and in accordance with FTC requirements may be marked with the statement "Made in the U.S.A. from imported Fabric." The sewing of an American flag next to the label is permissible.

Sincerely,

John Durant, Director
Commercial Rulings Division

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