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HQ 734722


October 16, 1992

MAR-2-05 CO:R:C:V 734722 RC

CATEGORY: MARKING

Ms. Linda L. Nahin
U.S. Council for Energy Awareness
1776 I Street, N.W., Suite 400
Washington, D.C. 20006-3708

RE: Country of Origin Marking of Simulated Nuclear Fuel Pellets; Container Marking; Ultimate Purchaser.

Dear Ms. Nahin:

This is in response to your letter of July 10, 1992, requesting a ruling upon the acceptable methods of marking imported simulated nuclear fuel pellets. Specifically, you request that Customs rule it permissible to remove the words "MADE IN HONG KONG" from the packaging of the pellets.

FACTS:

The U.S. Council for Energy Awareness (USCEA) contracted for production of 50,000 simulated nuclear fuel pellets. A sample has been submitted. Your vendor sub-contracted the job to a Hong Kong firm which produced the final product. The pellet is bubble packed and attached to the front of the backer card. The words "MADE IN HONG KONG" also appear on the front side. You indicate that the products are not intended for sale, that they will be used to inform the general public about the benefits of nuclear energy.

ISSUE:

Whether the simulated nuclear fuel pellets and their packaging may be excepted from the country of origin marking requirements.

LAW AND ANALYSIS:

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) 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. 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 under section 134.32(d), Customs Regulations (19 CFR 134.32(d)), an article is excepted from marking if the marking of the article's container will reasonably indicate the origin of such article. Customs must be satisfied that in all foreseeable circumstances the article will reach the ultimate purchaser in a properly marked container. The "ultimate purchaser" is generally defined, in section 134.1(d), Customs Regulations (19 CFR 134.1(d)), as the last person in the United States who will receive the article in the form in which it was imported. Section 134.1(d)(4) states that if the imported article is distributed as a gift the recipient is the "ultimate purchaser."

An exception to the general marking rule is outlined in 19 U.S.C. 1304(a)(3)(F) which provides that articles imported for use by the importer and not intended for sale in their imported or any other form need not be marked. This exception applies to trade tools and demonstrative samples which are not intended for sale or donation. This exception does not apply to the instant case, because the backer cards are to be given away. The backer cards are primarily didactic in scope, used to inform the public. They are not the usual trade tools because the recipients, rather than the promoters, will retain or dispose of them. The simulated pellets, themselves, have relatively little commercial value.

Pursuant to the regulations, either the pellets themselves or the backer cards must be marked to indicate the country of origin of the pellets. Thus, as shown on the sample backer, the marking "HONG KONG" must be retained; it would be improper to remove the country of origin marking from both the pellets and the backer cards.

HOLDING:

The simulated nuclear fuel pellets or the backer cards are required to be marked under 19 U.S.C. 1304 and Part 134, Customs Regulations, with the name of the country of origin of the pellets. The method of marking on the submitted sample is sufficient.

Sincerely,


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