HQ 0734646 - Country of origin marking of disposable containers; 19 CFR 134.32(m); U.S. articles exported and returned; abrasive belting material; HRL 729316; articles of foreign origin - United States International Trade Commision Rulings

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HQ 734646

December 23, 1992

MAR 2-05 CO:R:C:V 734646 LR

CATEGORY: MARKING

Mr. Ronald E. Senn
Customs/Import Mgr., Transportation
3M Center PO Box 33250
St. Paul, MN 55133

RE: Country of origin marking of disposable containers; 19 CFR 134.32(m); U.S. articles exported and returned; abrasive belting material; HRL 729316; articles of foreign origin

Dear Mr. Senn:

This is in response to your letter dated May 13, 1992, requesting a ruling on the country of origin marking of imported disposable containers for abrasive belting material excepted from marking under 19 CFR 134.32(m).

FACTS:

Minnesota Mining and Manufacturing Company (3M), produces abrasive belting material in the U.S. into continuous rolls in various widths. The rolls are exported to Mexico and processed there by cutting to proper length (and, in some cases also to proper width), and splicing the ends. In Headquarters Ruling Letter (HRL) 729316, April 20, 1989, it was determined that the Mexican processing did not substantially transform the belts into a product of Mexico and that the belts are excepted from marking pursuant to 19 CFR 134.32(m) pertaining to U.S. goods exported and returned. You now ask whether disposable containers containing the finished product are required to be labeled as to origin and if so, whether "Made in the United States" is acceptable.

ISSUE:

What are the 19 U.S.C. 1304 country of origin marking requirements for disposable containers for abrasive belts which are excepted from marking under 19 CFR 134.32(m)?

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

Should the containers be labeled to indicate their own origin?

The marking requirements for containers are set forth in 19 U.S.C. 1304(b) and 19 CFR Part 134, Subpart C. 19 U.S.C. 1304(b) states that "usual containers in use as such at the time of importation shall in no case be required to be marked to show the country of their own origin." 19 CFR 134.24(d) similarly provides that usual disposable containers in use as such at the time of importation shall not be required to be marked to show the country of their own origin. Usual containers include those ordinary disposable types of containers or holders, including cans, bottles, paper or polyethylene bags, paperboard boxes, and similar containers or holders which are ordinarily discarded after the contents have been consumed. See 19 CFR 134.24(a). For purposes of this ruling, we assume that the containers in question are usual disposable containers which fall within these provisions. Accordingly, they are not required to be marked with their own country of origin.

Should the containers be labeled to indicate the origin of the contents?

In general, disposable containers are required to indicate the country of origin of their contents. In this regard, 19 CFR 134.24(d) provides that usual disposable containers in use as such at the time of importation shall be marked to indicate the origin of their contents regardless of the fact that the contents are excepted from marking requirements. 19 CFR 134.22(a) similarly states that when an article is excepted from the marking requirements, the outermost container or holder in which the article ordinarily reaches the ultimate purchaser shall be marked to indicate the country of origin of the article whether or not the article is marked to indicate its country of origin. In such manner, the ultimate purchaser will be advised of the country of origin of the contents, even though the contents are not required to marked. However, based on the following discussion, we conclude that these provisions do not apply when the contents are excepted from marking under 19 CFR 134.32(m).

19 CFR 134.32(m) excepts from marking products of the United States which are exported and returned. Even though this provision is included as an "exception", articles which qualify under 134.32(m) are actually outside the scope of 19 U.S.C. 1304. This is because the marking requirements set forth in 19 U.S.C. 1304 apply only to "articles of foreign origin imported into the United States and foreign origin refers to a country of origin other than the United States. 19 CFR 134.1(c). (Country of origin means the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of Part 134. 19 CFR

In the case of a U.S. article exported and returned, with limited exceptions not applicable here, we have determined that such article is not required pursuant to 19 U.S.C. 1304 to be marked with its country of origin unless it has been substantially transformed prior to its return. Absent a substantial transformation, the article in question remains a U.S. article and is not "an article of foreign origin". Accordingly, U.S. articles exported and returned are not articles of foreign origin which are subject to the marking requirements of 19 U.S.C. 1304. An alternative approach would be to conclude, as we did in HRL 729316, that such articles are excepted from marking pursuant to 19 CFR 134.32(m), pertaining to U.S. articles exported and returned. In either case, no marking of the article is required whether such marking appears on the article itself or on its container. The general requirement that usual disposable containers be marked to indicate the origin of the contents is simply not applicable when the contents are not of foreign origin.

Since we determined in HRL 729316 that the subject U.S. abrasive belting material is not substantially transformed in Mexico, it would not be considered an article of foreign origin subject to the requirements of 19 U.S.C. 1304 on its return. Accordingly, notwithstanding the container provisions set forth in 19 CFR Part 134, Subpart C, assuming the disposable container is imported with the product, no 19 U.S.C. 1304 marking requirements apply either to the product or its container. Whether they may be labeled "Made in the United States" is a question which should be addressed to the Federal Trade Commission.

HOLDING:

For purposes of 19 U.S.C. 1304, disposable containers imported with abrasive belts excepted from marking pursuant to 19 CFR 134.32(m) are not required to be marked either with their own country of origin or with the origin of their contents.

Sincerely,

John Durant, Director

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