United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1995 HQ Rulings > HQ 558985 - HQ 735131 > HQ 559391

Previous Ruling Next Ruling
HQ 559391




August 18, 1995

CLA-2 R:C:S MLR

CATEGORY: CLASSIFICATION

Mr. Samuel P. Drake
Rudolph Miles & Sons
4950 Gateway East
P.O. Box 144
El Paso, Texas 79942

RE: Headquarters Ruling Letter 957697 dated June 21, 1995; "XL-2PK Value Pak" residential burglar/fire alarm system; NAFTA; Article 509; country of origin

Dear Mr. Drake:

This is to inform you that we are modifying Headquarters Ruling Letter (HRL) 957697 issued to you on June 21, 1995, which responded to your letter dated February 22, 1995, written on behalf of Alarm Device Manufacturing Company, concerning, in part, the country of origin of a residential burglar/fire alarm system (XL-2PK Value Pak).

FACTS:

The facts of HRL 957697 are herein incorporated by reference. However, the pertinent facts relevant to this modification concern the individual marking of components and the container of the alarm system. Since the alarm system is classified under subheading 8531.10.00, Harmonized Tariff Schedule of the United States (HTSUS), as a functional unit, you proposed to individually mark the components of the alarm system and the container of the alarm system as follows:

Contents: XL-2PK Value Pak
1 XL-2 Control Panel Assembled in Mexico
1 XL-4600SM Surface Mount LED Key Pad
Key Pad Assembled in Mexico
Spare Door From Korea
1 12V 4AH Battery Taiwan 1 Transformer USA 1 Indoor Speaker/Siren Taiwan 1 Washer USA 1 Beacon Plus PIR Israel 6 Resistors Japan 1 Grounding Lug USA 1 Steel Cabinet USA
2 Spacers So. Korea

However, since HRL 957697 held that the country of origin of the alarm system is Mexico, it was determined that the individual components and the containers must be labeled "Product of Mexico," "Made in Mexico," or similar wording, and that the individual marking of the components such as "Made in Taiwan" was unacceptable and was to be corrected.

ISSUE:

Whether the components may be individually marked.

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 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 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. Inc., 27 CCPA 297, 302, C.A.D. 104 (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 134.44, Customs Regulations (19 CFR 134.44), states that: "any method of marking at any location insuring that country of origin will conspicuously appear on the article shall be acceptable."

In HRL 957697 it was determined that the country of origin of the alarm system (consisting of the various components) is Mexico. Therefore, pursuant to 19 CFR 134.46, it was determined that the individual marking of the components of the alarm system with a country other than the country of origin was inappropriate. Customs has recognized that the presence of a geographic location other than the country in which the article was produced on an imported article or its container may mislead the ultimate purchaser as to the true country of origin. Accordingly, in cases where the name of a location 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 appears on an imported article or its container, 19 CFR 134.46 provides that 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. The purpose of this section is to prevent the possibility of misleading or deceiving the ultimate purchaser as to the actual origin of the imported good.

After reconsidering HRL 957697, it remains our opinion that the country of origin of the alarm system (consisting of the XL-2 control panel, the XL-4600SM surface mount LED key pad and spare door, 12V 4AH battery, transformer, indoor speaker/siren, washer, beacon plus PIR, resistors, grounding lug, steel cabinet, and spacers) is Mexico and this country of origin must be clearly indicated to the ultimate purchaser which was not so provided by the proposed marking. Nevertheless, we find that the individual components may be labeled with a country other than the country of origin under certain circumstances.

If the alarm system is sold to the ultimate purchaser in retail packages, the only marking required is the marking on the container of the alarm system, "Product of Mexico," "Made in Mexico," or similar wording to indicate the country of origin of the alarm system. The individual components do not require any marking, but they also may be marked "Product of Mexico," "Made in Mexico," or similar wording. If the individual components of the alarm system are marked with a country other than Mexico, the retail package container must clearly indicate the country of origin of the alarm system as Mexico and must make reference to the countries indicated on the components so that the ultimate purchaser is not misled as the actual origin of the imported alarm system.

Accordingly, if an individual component is marked with a country other than Mexico, the container must be labeled to clearly indicate Mexico as the country of origin of the XL-2PK Value Pak (i.e., the alarm system) and make reference to the components that contain a marking other than the country of origin in the following manner: "XL-2PK Value Pak Made in Mexico with components from (countries identified on various components)."

HOLDING:

On the basis of the information submitted, since the country of origin of the alarm system is Mexico, if the alarm system is sold to the ultimate purchaser in a retail package, the only marking required is the marking on the container of the alarm system, "Product of Mexico," "Made in Mexico," or similar wording to indicate the country of origin of the alarm system. The individual components do not require any marking or may be marked "Product of Mexico," "Made in Mexico," or similar wording. However, if the individual packaged components are marked with a country other than Mexico, the retail package container for the alarm system must clearly indicate the country of origin of the alarm system and make reference to the countries indicated on the components so that the ultimate purchaser is not misled as the actual origin of the imported alarm system. Accordingly, HRL 957697 is hereby modified.

A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: