HQ 0735503 - Country of origin marking for watches, marked on the back of watch cases; movements; use of the phrase "assembled in"; 19 CFR 134.46; HQ 735474 - United States International Trade Commision Rulings

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HQ 735503
July 1, 1994

MAR-2-05 CO:R:C:V 735503 RSD

CATEGORY: MARKING

Mr. Stephen Degiacomo
Sports Marketing Int'l, Inc.
1874 Center Street
Boston, Massachusetts 02132

RE: Country of origin marking for watches, marked on the back of watch cases; movements; use of the phrase "assembled in"; 19 CFR 134.46; HQ 735474

Dear Mr. Degiacomo:

This is in response to your letter sent to our office by fax transmission on February 18, 1994, regarding a proposed country of origin marking for wrist watches. A copy of your proposed marking for the watches was sent with your fax.

FACTS:

Your letter indicates that you propose to imprint the country of origin marking on the back casings of watches you are importing into the United States. The marking on the watch as illustrated by the copy you faxed has two circles. Inside the inner circle the letters SMi is in a bold type, and it is above the words "WATER RESISTANT". Inside the outer circle the words "WATCH ASSEMBLED IN CHINA" "JAPAN MOVEMENT" appear. The two phrases in the outer circle are adjacent to each other in a circular fashion and are separated by dots. On the faxed copy, the letters in both phrases are approximately the same size. We have no indication of the size of the marking or the method of the marking on the actual watch.

ISSUE:

Does the proposed marking as described above and illustrated by the faxed copy which will be imprinted on the back of a watch case satisfy the country of origin marking requirements for watches?

FACTS:

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, a watch must be legibly marked with the name of the country of manufacture of the watch movement in a conspicuous place.

In HQ 735251 (October 7, 1993), Customs ruled that the phrase "Assembled in" was not sufficient to designate the country of origin of an article under 19 U.S.C. 1304. We also held that the marking on a watch "Swiss Movement Parts Assembled in China" was not acceptable because it did not properly indicate the country of manufacture of the watch movement to the ultimate purchaser.

However, in HQ 735474, we ruled that the marking "Movement Philippines" "Assembled in Hong Kong" on a watch was acceptable. We explained that 19 U.S.C. 1304 does not prohibit additional information, such as where certain processing is done or the name of the country where some parts are made, from being put on the article, provided that the article is properly marked with its country of origin and the information is not false or misleading. We pointed out that the phrase "assembled in Hong Kong" provided consumers with additional information regarding where the watch was assembled or encased and it was not false or misleading. Therefore, the country of origin marking "JAPAN MOVEMENT" "WATCH ASSEMBLED IN CHINA", on the back of the watch case as shown on the copy you sent, would be acceptable if this information is
accurate. In addition, the marking must be legible and conspicuous so that the ultimate purchaser can easily find the marking and read it without strain.

However, because there is a reference made to another country or locality other than the actual country of origin, the requirements of 19 CFR 134.46 must be met. 19 CFR 134.46 provides that in any case in which the words "U.S." or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or locality in the U.S., or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced, appear on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," "Product of" or other words of similar meaning.

In HQ 735251, Customs indicated that in the case of watches, the word "Movement" or an abbreviation for it would be the equivalent of "Made in". We note that the proposed marking as shown in the faxed copy is in a comparable size and in close proximity to the word China. Therefore, the proposed marking meets the requirements of 19 CFR 134.46

You should also be aware that 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 watches must be marked in accordance with the special marking requirements set forth in Chapter 91, Additional U.S. Note 4 of the Harmonized Tariff Schedule of the United States (HTSUSA) (19 U.S.C. 1202). This note requires that any watch 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, stamping, or mold-marking (either indented or raised), as specified in the provisions of this note. This marking is mandatory. The Customs Service has no authority for granting exceptions to the special marking requirements for watches.

Section (a) of Additional U.S. Note 4 requires that watch movements shall be marked on one or more of the bridges or top plates to show the manufacturer or purchaser; and, in words, the number of jewels, if any servicing a mechanical purpose as frictional bearings. Section (c) of Additional U.S. Note 4 requires that watch cases shall be marked on the inside or outside of the back cover to show the name of the country of manufacture, and the name of the manufacturer or purchaser. The country of manufacture in these requirements refers to where the movements and cases are manufactured rather than where the watch
was made. The special marking must be accomplished by one of the methods specified in the Additional U.S. Note 4, and using stickers is not an acceptable alternative.

HOLDING:

The proposed marking "JAPAN MOVEMENT" "WATCH ASSEMBLED IN CHINA" for imported watches is acceptable provided that it accurately describes the watches and the marking is legible, conspicuous, and permanent. The marking shown on the faxed copy satisfies the requirements of 19 CFR 134.46.

Sincerely,

John Durant, Director
Commercial Rulings Division

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