HQ 0734475 - County of origin marking of non-recorded audio cassette tapes and their packing containers entered for immediate exportation or for transportation and exportation overseas; 19 CFR 134.32(j); 19 CFR 134.22(c); United States v. Friedlaender & Co., 27 C.C.P.A. 297, C.A.D. 104 (1940); East Asiatic Co. Inc. v. United States, 27 C.C.P.A. 364, C.A.D. 112 (1940); Charles T. Smith, Inc. v. United States, 11 Ct. Cust. Appls. 39 (1943); C.S.D. 82-47 (HQ 213637 (November 9, 1981)). - United States International Trade Commision Rulings

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HQ 734475
March 18, 1992

MAR-2-05 CO:R:C:V: 734475 ER

CATEGORY: MARKING

Mr. Jack Grossman
Manager
Compliance and Special Projects
Sony Corporation of America
Sony Drive
Park Ridge, New Jersey 07656

RE: County of origin marking of non-recorded audio cassette tapes and their packing containers entered for immediate exportation or for transportation and exportation overseas; 19 CFR 134.32(j); 19 CFR 134.22(c); United States v. Friedlaender & Co., 27 C.C.P.A. 297, C.A.D. 104 (1940); East Asiatic Co. Inc. v. United States, 27 C.C.P.A. 364, C.A.D. 112 (1940); Charles T. Smith, Inc. v. United States, 11 Ct. Cust. Appls. 39 (1943); C.S.D. 82-47 (HQ 213637 (November 9, 1981)).

Dear Mr. Grossman:

This is in response to your letter of December 30, 1991, requesting a country of origin marking ruling regarding non- recorded audio cassette tapes and their packing containers entered into the United States for immediate exportation or for transportation and exportation overseas.

FACTS:

Through Laredo, Texas, Sony Corporation of America enters non-recorded audio cassette tapes which originate in Mexico and which are intended for immediate exportation or for transportation and exportation to Panama. By telephone conversation on January 27, 1992, you stated that the tapes are bulk-packed into containers and are entered under a transportation and exportation bond. You confirmed that neither the tapes nor the containers bear country of origin markings. Additionally, the containers bear no reference to any name and address of an importer, distributor, or other person or company in the United States. Furthermore, Sony does not distribute, store, handle, or sell in the United States the non-recorded audio cassette tapes which are the subject of its ruling request. You state that it is your opinion that the tapes and their outermost packing containers are not subject to the marking
requirements of Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304).

ISSUE:

Whether non-recorded audio cassette tapes and their outermost packing containers originating in Mexico and entered into the United States through Laredo, Texas, for immediate exportation or transportation and exportation to Panama, are excepted from the country of origin marking requirements of section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304).

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 container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. By enacting 19 U.S.C. 1304, Congress intended to ensure that the ultimate purchaser would be able to know by inspecting 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, 302 C.A.D. 104 (1940). Part 134, Customs Regulations (19 CFR 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

Part 134.32, Customs Regulations (19 CFR 134.32) sets forth some of the general exceptions to marking requirements. Section 134.32(j), Customs Regulations (19 CFR 134.32(j)) provides that articles entered or withdrawn from warehouse for immediate exportation or for transportation and exportation are excepted from marking requirements. Obviously this regulation does not except articles entered into the United States which are intended for distribution and consumption here. Rather, this regulation applies to situations, such as the case at hand, where merchandise enters the United States solely for exportation or transportation and exportation to another country and is never consumed or used here.

It is well established that as a general rule goods are considered "imported", and hence subject to the tariff statute, when they are brought within a Customs district of the United States with an intent to unlade. Hollander Co. v. U.S., 22 C.C.P.A. 645, T.D. 47632 (1935); Estate of Pritchard v. U.S., 43 C.C.P.A. 85, C.A.D. 612 (1955); Sterling Bronze Co. v. U.S., 12 Ct. Cust. Appls. 338, T.D. 40487 (1924); Mills & Gibbs Corp. v. U.S., 13 Ct. Cust. Appls. 72, T.D. 40933 (1925); and Charles T. Smith, Inc. v. U.S., 11 Ct. Cust. Appls. 39, C.D. 789 (1943). Of significance to the case at hand is the opinion in East Asiatic Co., Inc. v. United States, 27 C.C.P.A. 364, C.A.D. 112 (1940), which involved an interpretation of the word "importation" as used in the statute governing additional duties for failure to mark, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304). There the court elaborated that "import" in the tariff sense implies the bringing into the United States of foreign goods for use or consumption here. With respect to marking the court stated that:
when Congress enacted section 304(b), supra, relating to the marking of any imported goods, it had in mind merchandise which was to enter into our commerce. Unless the goods entered into our commerce, a failure to mark them would be of no concern ...

Based on the East Asiatic Co. decision, it follows that imported articles and their containers entered under a transportation and exportation bond and not destined for consumption or use in the United States should be excepted from the marking requirements of Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304).

As noted in the facts above, Sony enters the merchandise in question under a transportation and exportation bond and has no intention of entering the audio cassette tapes and containers into the commerce of the United States. The sole purpose in entering the goods from Mexico into Laredo is to immediately export or transport and export them to Panama. Thus, in accordance with the exception to marking provided for in part 134.32(j), Customs Regulations (19 CFR 134.32(j)) and the East Asiatic Co. decision, Customs maintains that the goods and their outermost packing containers are not subject to the marking requirements of Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304). This exception is not applicable if the importer enters the goods for consumption and subsequently exports them.

HOLDING:

Non-recorded audio cassette tapes and their outermost packing containers, originating in Mexico and entered through Laredo for immediate exportation or transportation and exportation to Panama, are excepted from the marking requirements of Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provided the goods are not entered into the commerce of the United States.

Sincerely,

John Durant, Director
Commercial Rulings Division

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