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HQ 734895


April 16, 1993

MAR 2-05 CO:R:C:V 734895 LR

CATEGORY: MARKING

Ms. Janice Johnson
The Hilsinger Corporation
33 West Bacon Street
P.O. Box 1538
Plainville, Ma. 02762-0538

RE: Country of origin marking of metal components used with an optician's anvil and staking tool; rotary cutting tools; container marking; 19 CFR 134.32(d); 134.42; 134.34.

Dear Ms. Johnson:

This is in response to your letter dated November 23, 1992, regarding the country of origin marking of certain metal components. Additional information was submitted on March 31 and April 9, 1993. Samples of several of the articles have been submitted, each in a sealed plastic package which is marked with its country of origin.

FACTS:

The Hilsinger Corporation is a manufacturer and distributor of optical components and accessories which are used by an optician in a laboratory environment. A variety of metal components which are to be used with an optician's bench anvil and staking tool are manufactured in France. These parts are designed to fit such tools and cannot be used independently. You indicate that pursuant to HQ 731938, the parts in question would be exempt from individual country of origin marking when the diameter is less than 3/16"; they are considered incapable of being marked. The parts that you import run between .1875 - .1950 inches which is 3/16" or slightly larger in diameter. Your supplier has advised that it would be cost prohibitive to try individually marking these parts because of size, shape and hardness. The products in question are described as follows:

Raw Material # Description
20 401 01 00 small peening blade
20 405 01 00 pointed punch
20 406 01 00 blunt punch
20 407 01 00 single rivet setting punch
20 408 01 00 small rivet head punch
20 409 01 00 double rivet setting punch
20 415 01 00 hinge anvil

You propose to import the above products in bulk (with country of origin marking on the bulk packages) and repack each article into its own sealed plastic package marked by means of an adhesive sticker with your company name, the name of the product, country of origin, and part number. The submitted samples are packaged and marked in this manner. On each of the packages, the "Made in France" marking is clearly legible and conspicuous. You have advised that you will sell the articles either to wholesalers or directly to opticians.

ISSUE:

Whether your proposal satisfies the requirements of 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 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.

19 CFR 134.42 provides that the marking of certain articles shall be by specific methods as may be prescribed by the Commissioner of Customs. Pursuant to this authority, in T.D.'s 74- 122, and 84-214, special marking requirements for imported rotary metal cutting tools were imposed. The former sets forth definite methods of marking these products and the later limits those situations in which the marking of the container, in lieu of the article itself, is permitted. (The decisions state that products less than 3/16" in diameter, are considered incapable of being marked and exempt from these requirements). Further limits on the marking of containers for rotary metal cutting tools imported in bulk and repackaged in the United States were articulated in Headquarters Ruling Letter (HRL) 731938, January 9, 1989, the ruling to which you refer.

In this case, some of the metal tools you wish to import are 3/16" or slightly greater. While you acknowledge that they are capable of being marked, you advise that it would be costly to do so. Although an exception from individual marking applies when the cost is prohibitive, insufficient evidence has been presented to warrant an exception on this basis. However, after review of the samples and the information submitted, we conclude that the metal cutting tools which you will import are not rotary metal tools which are covered by the above decisions. T.D. 74-122 described the products it covers as "imported rotary metal cutting tools classified under items 649.43, 649.44, and 649.46, of the Tariff Schedules of the United States (TSUS). (emphasis added) 1/ T.D. 84-214 further describes these rotary products as interchangeable tools for hand or machine tools such as drill bits and twist drills. Since the above tariff provisions cover metal cutting tools which are not of the rotary type, articles which were covered by these provisions, but which are not of the rotary type, would not be subject to the special requirements.

Rotary means tuning around a central point or axis as a wheel; rotating New World Dictionary; second edition. Drill bits and twist drills, both of which were specifically mentioned in the above decisions, both rotate when they are used and may be considered rotary metal cutting tools. The submitted samples do not appear to be of this type. You have advised us that the all the tools covered by your ruling request do not rotate when they are used and are not of the rotary type. In fact, they are described as peening and punching tools, which are not rotary type tools. Peening tools are used to strike something; punching tools are used to cut or stamp out something. After examination of the submitted samples and the information presented, we conclude that the tools in question are not rotary metal cutting tools and thus are outside the scope of the above decisions. Therefore, the general requirements of 19 U.S.C. 1304 and 19 CFR Part 134 apply.

Articles for which the marking of the container will reasonably indicate the country of origin are excepted from marking under 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d). In this case, because each tool is to be packaged in its own sealed plastic package and such package will contain the pertinent information about the product along with the country of origin, we believe that the tools will reach the opticians in this manner, even if they are sold first to a wholesaler. If the articles were imported in this manner, we would rule that they are excepted from individual marking pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d). However, the tools are to be imported in bulk and repacked into these containers after importation.

19 CFR 134.34 provides that an exception under 19 CFR 134.32(d) may be authorized in the discretion of the district director for imported articles which are to be repacked after release from Customs custody under the following conditions:

1/ The Harmonized Tariff Schedule has replaced the Tariff Schedules of the United States.

(1) The containers in which the articles are repacked will indicate the origin of the articles to an ultimate purchaser in the United States.

(2) The importer arranges for supervision of the marking of the containers by Customs officers at the importer's expense or secures such verification, as may be necessary, by certification and the submission of a sample or otherwise, of the marking prior to the liquidation of the entry. (emphasis added).

Since the tools will be imported in bulk and placed into the individual sealed packages after importation, approval of your proposed marking must be authorized by the district director.

HOLDING:

The articles described above are not rotary metal cutting tools for which special marking requirements apply. Your proposal to import them unmarked in bulk for repacking in the U.S. into individual sealed containers with the country of origin and other pertinent product information satisfies the requirements of 19 U.S.C. 1304 and 19 CFR Part 134 provided the bulk container is marked and the district director authorizes the use of the procedures set forth in 19 CFR 134.34.

Sincerely,

John Durant, Director

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