HQ 0734145 - Country of Origin Marking - Baskets with Plastic Inserts; Combining and Composite Goods; HQ 088527; T.D. 91-7. - United States International Trade Commision Rulings

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HQ 734145
April 13, 1992

MAR-2-05 CO:R:C:V 734145 NL

CATEGORY: MARKING

Ms. Mary Beth Moran
Customer Service
The Buffalo Customhouse Brokerage Co., Inc. Peace Bridge Plaza Warehouse
Suite 211
Buffalo, NY 14213

RE: Country of Origin Marking - Baskets with Plastic Inserts; Combining and Composite Goods; HQ 088527; T.D. 91-7.

Dear Ms. Moran:

This is in response to your request for a ruling dated December 19, 1990, on behalf of your client, Par Pak Ltd. This ruling will address the required country of origin marking; a previous Headquarters ruling, HQ 088527 (April 18, 1991), considered classification and eligibility for reduced duty under the U.S.-Canada Free Trade Agreement (FTA).

FACTS:

The imported articles consist of a bamboo basket of Chinese origin and a plastic tray and dome of Canadian origin. The plastic articles are manufactured to fit into the basket snugly; the combined parts form a container and will be used in catering and similar businesses to transport, serve and display food items. The articles will be imported from Canada unassembled, with fifteen of each part per container. A photocopy of the proposed marking of the containers was submitted for consideration. The marking reads, "Wicker Trays - Product of China, Plastic Domes/Trays Product of Canada". It is not indicated whether Par Pak intends to mark the baskets and trays individually.

Our related ruling found that the articles were classifiable under Heading 4602, Harmonized Tariff Schedule of the United States (HTSUS), which provides for basketwork, wickerwork, and other articles made up of plaiting materials. The plastic tray and dome were found to be part of a composite good whose essential character, in accordance with General Rule of Interpretation (GRI) 3(b), was that of a bamboo basket. As to dutiability, HQ 088527 found that the classification under the HTSUS of the Chinese-origin basket was not changed by the addition of the Canadian plastic materials. Thus, as imported together into the U.S. the baskets and plastic pieces were treated for duty purposes as products of China and not Canada.

ISSUE:

What are the country of origin marking requirements applicable to these articles?

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.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

With respect to country of origin marking the question is whether the plastic tray and dome must be identified as to their Canadian origin separately from the Chinese baskets. Customs has recently addressed the principles governing the marking of composite and combined articles. See T.D. 91-7, 25 Cust. B. & Dec. No. 2/3 (January 16, 1991). In that decision we stated that the classification of articles for tariff purposes as composite goods is not determinative of of the country of origin marking requirements of the materials or components which comprise the composite article. For purposes of 19 U.S.C. 1304, the relevant inquiry marking is whether the materials or components have been substantially transformed as a result of their inclusion in the composite good. If so, they will be subject to marking as products of the country where the last substantial transformation took place prior to importation into the U.S. If not, they are subject to marking as articles originating in their various countries of growth or manufacture.

In this case, the combining of the basket with the plastic tray and dome in Canada does not effect a substantial transformation. The articles are merely placed together, and the basket would still have its function independently of the plastic dome and tray. The latter articles enhance the functionality of the basket, but do not acquire the essential character of the basket when combined with it. Rather, they retain their identity as separate articles which in this case are products of Canada. Moreover, the domes and trays are sufficiently important to the character of the composite good that it would not be appropriate to treat them as insignificant items. Under the "common sense" approach described in T.D. 91-7, it is our opinion that the domes and trays are subject to marking in their own right. Accordingly, we conclude that the plastic domes and trays are required to be marked as articles of Canadian origin and the baskets as articles of Chinese origin.

If the baskets with domes and trays are imported and sold in boxes of fifteen to caterers and similar establishments for their own use in the U.S., marking the countries of origin of the baskets, domes, and trays on these boxes will satisfy the country of origin marking requirements of 19 U.S.C. 1304 and Part 134, Customs Regulations. Under these circumstances such purchasers would be the ultimate purchasers within the meaning of 19 U.S.C. 1304, and marking on the boxes in which the articles reach them will be sufficient. See 19 CFR 134.32(d). Provided that Customs officials are satisfied that in all foreseeable circumstances the baskets, domes and trays will reach the ultimate purchasers in the U.S. in these properly marked containers, they will not be required to be individually marked. The marking proposed for these boxes, i.e., "Wicker Trays - Product of China, Plastic Domes/Trays Product of Canada", will satisfy the country of origin marking requirements.

HOLDING:

In accordance with T.D. 91-7, the imported baskets, domes and trays are required to be separately marked with their own countries of origin. Alternatively, assuming these articles are imported in properly marked boxes and that Customs officials at the port of entry are satisfied that the articles will reach the ultimate purchasers in these boxes, individual marking is not required. The marking proposed for the boxes in which the baskets, domes and trays will be imported, described above, satisfies the requirements of 19 U.S.C. 1304 and Part 134, Customs Regulations.

Sincerely,

John Durant
Director, Commercial

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