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HQ 735575





September 29, 1994

MAR-2-05-CO:R:C:S 735575 DEC

CATEGORY: MARKING

Mr. Miguel Ruiz
Miami International Forwarders
P.O. Box 523730
Miami, Florida 33152-3730

RE: Country of origin marking of shoe clips; 19 C.F.R. ?10.22; subheading 9802.00.80, HTSUS; 19 C.F.R. ?134.34

Dear Mr. Ruiz:

This is in response to your letter dated March 21, 1994, in which you seek information with respect to the appropriate country of origin marking of shoe clips.

FACTS:

You have submitted a sample of the rhinestone shoe clips which your client, Grazie Designs, intends to import. The article is manufactured in stages with components from various countries. The rhinestones from Austria are imported into the United States and set into a chain which is made in the United States. The rhinestone chain will be exported to Guatemala where it will be cut to required lengths. The rhinestone chain will be reconfigured and soldered together to form the top portion of the shoe clip. A shoe clip from either France or Hong Kong will then be soldered to the top portion, forming the completed shoe clip. The shoe clip will then be electroplated to produce a silver appearance. The shoe clips will be packed in plastic bags containing fifty (50) pieces and shipped to the United States where purchasers in the United States will repack the items after purchasing them from Grazie Designs. We understand that the shoe clips ultimately will be sold at retail two to a package.

ISSUE:

What are the country of origin marking requirements applicable to the imported shoe clips?

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. origin imported into the United States 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 United States the English name of the country of origin of the article. Part 134 of the Customs Regulations implements the country of origin marking requirements and exceptions of 19 U.S.C. ?1304.

Section 10.22, Customs Regulations (19 C.F.R. ?10.22), provides special marking requirements for goods assembled abroad from United States components which are eligible for a duty exemption under subheading 9802.00.80 of the Harmonized Tariff Schedule of the United States ("HTSUS"). Section 10.22 provides, in pertinent part, that:

Assembled articles entitled to the exception are considered products of the country of assembly for the purposes of the country of origin marking requirements of section 304, Tariff act of 1930, as amended (19 U.S.C. 1304).

The first question presented in this case is whether the processing performed in the foreign country constitutes an assembly operation within the contemplation of subheading 9802.00.80, HTSUS so that when imported into the United States the finished shoe clips are eligible for a duty exemption under subheading 9802.00.80, HTSUS. In this case, a duty exemption under subheading 9802.00.80, HTSUS, is appropriate for the chain in which the rhinestones are mounted since the chain is made in the United States. Based on the information provided to Customs and pursuant to 19 C.F.R. ?10.22, the country of assembly will be the country of origin of the imported shoe clip because the operations to be performed in Guatemala to the United States chain appear to be acceptable assembly operations or operations incidental thereto.

In addition, you asked whether it is sufficient to mark only the outside of the plastic bags which will be used to ship fifty (50) shoe clips at a time to the United States. The retail consumer is the ultimate purchaser of the shoe clips since they will be sold in pairs. Therefore, it is not acceptable to mark the bags in which the clips are imported because the bags will not reach the ultimate purchasers. Rather, the completed shoe clips must be conspicuously, legibly and permanently marked to indicate the country of origin "Guatemala" to such persons.

In the alternative, the importer may seek approval of local Customs officials for a repacking operation conducted under Customs supervision as provided under section 134.34, Customs Regulations (19 C.F.R. ?134.34). Section 134.34 provides that an exception may be authorized in the discretion of the district director under section 134.32(d), Customs Regulations (19 C.F.R. release from Customs custody under the following conditions: (1) the containers in which the articles are repacked will indicate the origin of the articles to an ultimate purchaser in the United states; and (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.

HOLDING:

The shoe clips must be marked with Guatemala as the country of origin because 19 C.F.R. ?10.22 provides that the country of origin is the country of assembly of articles entitled to a duty exemption under 9802.00.80, HTSUS. Alternatively, the importer is entitled to seek approval from local Customs officials for a repacking operation conducted under Customs supervision as provided under section 134.34.

Sincerely,

John Durant

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