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HQ 735158

December 17, 1993

MAR-2-05 CO:R:C:V 735158 RSD

CATEGORY: MARKING

Mr. Bernard D. Liberati, General Manger
Morris Friedman & CO.
320 Walnut Street
Philadelphia, Pennsylvania 19106

RE: Country of origin marking for a table clock with a watch movement in a ceramic polystone frame which resembles a country cottage; special marking requirement for clocks; Chapter 91 Additional U.S. Note 4 of the HTSUSA; watch case

Dear Mr. Liberati:

This is in response to your letter to the National Import Specialist dated April 4, 1993, regarding the country of origin marking requirements for a table clock with a watch movement in a ceramic polystone frame which resembles a country cottage. The National Import Specialist forwarded your letter to Customs Headquarters for a response on the marking issue. We have received a sample of the table clock.

FACTS:

The article in question is a table clock with a watch movement. The watch movement is made in Japan. The movement is set into a base metal watch case (with glass crystal) which is made in Hong Kong. The watch is then set into a metal cap which then is set into a polystone frame in the shape of a country cottage, measuring approximately 4 1/2 inches by 3 1/4 inches by 2 3/4 inches. The polystone frame is made in China

The dial of the clock is marked with the letter S in a circle, and with the words "Quartz" and "Japan Movt". The movement is marked by die sinking, with the name of the manufacturer and the name of the country of manufacture (JAPAN), as well as other information.

The inside of the back of the watch case is die sunk with the name of the manufacturer and the country of manufacture (Hong Kong). The case back is covered by a metal cap which is then inserted into a circular slot in the polystone country cottage frame. An adhesive sticker indicating "Made in China" is attached to the green felt bottom of the frame.

ISSUE:

Is the sample clock with a watch movement housed in polystone frame properly marked to satisfy the country of origin marking law?

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, and permanently as the nature of the article (or container) will permit, in such manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was that the ultimate purchaser should be able to know by an inspection of the marking of 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 at 302 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain.

It has been the position of the U.S. Customs Service for many years that the country of origin of a watch or clock is the country of manufacture of the watch or clock movement. The addition of the hands, dial, case, or watchband add definition to the time piece but do not change the character or use of the watch or clock movement which is the "guts" of the watch or clock. Accordingly, in order to satisfy the requirements of 19 U.S.C 1304, the clock must be marked with the name of the country of manufacture of the clock movement. The country of origin marking must also be legible and in a conspicuous place.

The country of origin marking on the bottom of the face (dial) of the clock, "JAPAN MOVT", can be observed through a casual inspection of the article. It is also large enough and the letters are in a contrasting color to their background so that the marking can be read without strain or difficulty. Therefore, the marking is in a conspicuous location and is sufficiently legible to satisfy the requirements of 19 U.S.C. 1304.

Section 134.43(b), Customs Regulations (19 CFR 134.43(b)), in conjunction with section 11.9 Customs Regulations (19 CFR 11.9), provides that clocks must be marked in accordance with Chapter 91, U.S. Note 4 of the Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202). This note requires that any clock movement or case provided for in the subpart, whether imported separately or attached to any article provided for in the subpart, shall not be permitted to be entered unless conspicuously and indelibly marked by cutting, die-sinking, engraving, or stamping or mold-marking (either indented or raised, as specified in the provisions of the note. This marking is mandatory.

Section (b) of U.S. Note 4 requires that clock movements shall be marked on the most visible part of the front or back plate to show the name of the country of manufacture; the name of the manufacturer or purchaser; and, in words, the number of jewels, if any, serving a mechanical purpose as frictional bearings. Section (d) of U.S. Note 4 requires that clock cases provided for in Chapter 91, HTSUS, shall be marked on the most visible part of the outside of the back to show the name of the country of manufacture. The country of manufacture for these requirements refers to where the movement and cases were manufactured, rather than where the clock was made.

The movement is marked by die sinking, with the name of the manufacturer and the name of the country of manufacture (Japan) as well as other markings which are not required. This marking is in accordance with U.S. Note 4(a) of Chapter 91 of the HTSUS.

The inside of the back of the watch case is die sunk with the name of the manufacturer and the country of manufacture (Hong Kong). Although this marking would satisfy the special marking requirements of U.S. Note 4 of Chapter 91 of the HTSUS for watches, the movement in this case is being used for a clock, not a watch. Therefore, the issue that must be resolved is whether the polystone cottage frame constitutes a clock case classified in Chapter 91, HTSUS. If so, the special marking requirements apply and it must be marked on the most visible part of the outside of the back to indicate the name of the country of manufacture by cutting, die- sinking engraving, stamping, or mold-marking (either raised or indented).

In order to determine whether the polystone frame cottage constitutes a clock case provided for in Chapter 91, we referred the question to the Metals and Machinery Classification Branch for a determination on its classification. In a memorandum dated December 2, 1993, the Metals and Machinery Branch determined that the polystone portion would be considered a clock case and classified under subheading 9103.10.40, HTSUS, which provides for [c]locks with watch movements, excluding clocks of heading 9104: [b]attery powered: [o]ther: [h]aving no jewels or only one jewel in the movement with a column one rate of duty of 36 cents each plus 6.9% on the case plus 5.3% on the battery. (A Copy of Metal and Machinery Branch's memorandum is enclosed).

Because the polystone frame cottage is provided for in Chapter 91, HTSUS, the special marking requirements of U.S. Note 4 of Chapter 91 of the HTSUS apply. Therefore, the marking of the country of manufacture on the polystone frame through the use of an adhesive sticker on the green felt bottom is unacceptable because it is not one of the methods specified in the note and the marking is not on the most visible part of the outside of the back. An acceptable method of marking the polystone frame would be permanent stamping on the outside of the back of the white base.

HOLDING:

The country of origin marking on the (dial) face of the clock satisfies the requirement of 19 U.S.C. 1304. The marking of the watch movement satisfies the special marking requirements. The polystone frame is a clock case provided for in Chapter 91, HTSUS and must be marked in accordance with the special marking requirements for marking clock cases specified in Additional Note 4(d) of Chapter 91 of the HTSUS. The marking of the polystone frame by the adhesive sticker does not satisfy the special marking requirements for marking clock cases.

Sincerely,

John Durant, Director

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