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HQ 735400


December 8, 1993

MAR-2-05 CO:R:C:V 735400 KR

CATEGORY: MARKING

Richard Roster, District Director
Commercial Operations Division
610 S. Canal Street
Chicago, Illinois 60607

RE: Country of Origin Marking for Post Office Box Keys; Ultimate Purchaser; 19 U.S.C. 1304(a)(3)(D); 19 CFR 134.32(d); 19 CFR 134.1(d).

Dear Mr. Roster:

This is in response to your request for internal advice dated October 7, 1993, and received by this office October 25, 1993. The importer requested internal advice by letter dated July 7, 1993. The importer submitted additional information by letter dated October 26, 1993. You request advice concerning the "Notice to Mark and/or Redeliver" which was issued to Royal Lock Inc., regarding post office box keys which they import and sell to the U.S. Postal Service.

FACTS:

Royal Lock Inc., imports keys and their locks for sale directly to the U.S. Postal Service. Only the keys are the subject of this ruling. The keys and locks are used in post office boxes which may be rented by the public. The keys are marked on one side with "ROYAL LOCK INC." and a serial number. On the other side the keys are marked "U.S.P.S." and "DO NOT DUPLICATE". Three keys are cut per lock, two are given to the post office box renter and one is retained by the post office. The keys may not be duplicated. The keys must be returned after the post office box is no longer being rented. If the key is not returned the Post Office changes the lock in the post office box, thus rendering the key useless. Therefore, the keys remain the property of the Postal Service.

ISSUE:

Who is the ultimate purchaser of the keys used for post office boxes?

Are the keys excepted from country of origin marking?

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. 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 on the imported goods the country of which the goods are the product. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

Among the exceptions to country of origin marking is 19 U.S.C. 1304(a)(3)(D), also provided for in section 134.32(d), Customs Regulations (19 CFR 134.32(d)). That section provides that articles for which the marking of their containers will reasonably indicate the country of origin of the articles may be excepted from country of origin marking. However, for the exception to apply Customs must be satisfied that the articles will reach the "ultimate purchaser" in the original, properly marked containers in which the articles were imported. Section 134.1(d), Customs Regulations (19 CFR 134.1(d)), defines the "ultimate purchaser" as generally the last person in the U.S. who will receive the article in the form in which it was imported.

For what purpose and in what manner imported goods are to be used has been the focus of several marking decisions which are relevant in the instant case. In HQ 733267 (June 27, 1990), Customs ruled that for imported shop towels purchased in bulk by linen supply companies and then rented to individual shops, the ultimate purchaser of the towels was the linen supply company and, therefore, each towel need not be individually marked. When imported goods are purchased by an employer for use exclusively at work by its employees, the imported merchandise has been excepted from individual country of origin marking. See HQ 734304 (January 28, 1992) (disposable industrial work coveralls distributed free of charge to employees at an industrial plant (the ultimate purchaser) for use on the job are excepted from individual marking); and HQ 732793 (December 20, 1989) (employers are the ultimate purchasers of industrial work gloves distributed free of charge to employees on the job for use at work; such gloves are excepted from individual marking). Similarly, imported goods purchased by hospitals for use exclusively on the premises by staff or patients have also been excepted from individual marking. HQ 730945 (August 11, 1988) (hospitals are the ultimate purchasers of imported patient identification bracelets; such items are excepted from individual marking); HQ 715640 (June 16, 1981) (hospitals are the ultimate purchasers of imported disposable paper shoe covers, head covers, drape sheets, gowns, towels and other similar products, none of which have to be individually marked to indicate country of origin); HQ 723745 (February 6, 1984) (hospitals are the ultimate purchasers of imported surgical masks; such items do not have to be individually marked); and HQ 730840 (January 12, 1988) (hospitals are the ultimate purchasers of imported surgical gloves; such gloves are excepted from individual marking).

As in the imported shop towels rented by linen companies to individual shops in 733267, supra, post office box keys are purchased by the Postal Service for use by the public. In none of these situations cited above is the imported merchandise ever otherwise sold or intended for retention and use other than on site. The Postal Service retains ownership of the keys. Accordingly, it is our opinion that the ultimate purchaser of the keys is the Postal Service, and not the post office box renter. Therefore, so long as the Postal Service receives the keys in properly marked containers, the individual keys may be excepted from country of origin marking pursuant to 19 CFR 134.32(d).

HOLDING:

For purposes of country of origin marking, the ultimate purchaser of post office box keys is the Postal Service and not the post office box renter. Accordingly, pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d) the post office box keys are excepted from individual country of origin marking so long as the ultimate purchaser, the Postal Service, receives the keys in containers which are properly marked with the country of origin. This decision should be mailed by your office to the internal advice requester no later than 60 days from the date of this letter. On that date the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Lexis, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director
Commercial Rulings Division

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