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HQ 559438





January 30, 1996

MAR-2-05 RR:TC:SM 559438 DEC

CATEGORY: MARKING

Mr. Jerry Wiskin
Sonnenberg & Anderson
90 West Street
New York, New York 1006

RE: Country of origin marking; 19 CFR 134.46; 19 CFR 134.32; 19 CFR 134.26; HRL 734541

Dear Mr. Wiskin:

This is in response to your letter dated September 8, 1995, in which you seek a ruling on behalf of your client, Everson Ross Company, a Division of Cosco Industries, Incorporated (Everson Ross), with respect to the appropriate country of origin marking for imported ornamentation which are generally used on uniforms to designate rank or awards.

FACTS:

The articles that are the subject of this ruling request are used on uniforms to designate rank or awards. The shapes and forms of the merchandise include bars, eagles, stars, and leaves which are used by fire departments, police departments, or other similar agencies. In all the scenarios described below, Everson Ross, the importer, sells the articles to its customers which supply the articles to various uniformed departments.

In the first scenario, Everson Ross intends to import single collar bars plated with gold or rhodium. The bars will be imported in a small polybag, one end will be heat sealed while the other end will be folded over and sealed with a staple. These single bars will be imported in bulk in individual bags, approximately 1,000 units to a carton, with their cartons marked indicating the country of origin (Taiwan or China). After importation and prior to shipment to its customer, you state that Everson Ross will place an adhesive label on each polybag reading "Made in Taiwan" or "Made in China" where appropriate. You have submitted a sample of this article with the adhesive label.

In the second scenario, Everson Ross intends to import gold or rhodium plated ornamentations in bulk from Taiwan. You state that at the time of importation, the ornamentation will be packaged one piece per polybag as in scenario one. The individual pieces will not be marked, but the cartons in which they are imported into the United States will indicate their country of origin. After importation, Everson Ross will repack the pieces, generally in sets of two, in printed plastic bags. The polybags will be printed with the name "Everson Ross," its logo, and its telephone and fax numbers. Once repacked, Everson Ross will heat seal each polybag and place an adhesive sticker marked "Made in Taiwan" on the same side as the pre-printed text. You have submitted a sample of this article with the adhesive label.

In the third scenario, Everson Ross intends to import the identical merchandise as described in the second scenario in bulk. After importation, Everson Ross will mount the imported merchandise on cardboard inserts on which will be printed the name of the particular Everson Ross customer (e.g., "Fechheimer," the phrase "Uniform Quartermaster," and the emblem of the New York City Fire Department). In the lower right-hand corner, the phrase "Made in Taiwan" will be pre-printed on the insert. Once mounted, Everson Ross will pack these articles in pre-printed polybags as described in scenario two which contain the name "Everson Ross," its logo, and its telephone and fax numbers. Everson Ross will then heat seal each polybag and place an adhesive sticker marked "Made in Taiwan" on the same side of the polybag containing the pre-printed text. You have submitted a sample of this article.

ISSUE:

Whether the country of origin marking of the imported ornamentation in the three scenarios described above satisfies the requirements of Title 19, United States Code, section 1304 (19 U.S.C. 1304).

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. 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." Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the United States must be able to find the marking easily and read it without strain.

The marking of each polybag in lieu of the pins themselves is acceptable under 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d) only if Customs is satisfied that the recipients will receive the pins in their individually marked polybags. Relevant factors regarding whether an article is likely to remain in its original container include the chain of distribution, the type of container, and the nature of the article. In this case, Everson Ross does not distribute the pins directly to the ultimate purchaser, but rather through distributors such as "Fechheimer - Uniform Quartermaster" referred to in the third scenario. The fact that each pin is individually packaged in its own stapled closed or heat sealed bag tends to show that the pins are designed to be distributed in this fashion. Also, the fact that the pins are small and could get lost or tarnished were they to be removed prior to receipt by the ultimate purchaser, is further evidence that they will remain in their marked polybags. Based on all these considerations, we believe that it is very likely that the pins will remain in their original heat sealed polybags until receipt by the ultimate purchaser. Accordingly, we find that the marking of the individual polybags in lieu of the pins themselves is acceptable. See Headquarters Ruling Letter (HRL) 734541, dated October 8, 1992. Furthermore, the country of origin marking appears legibly and conspicuously on the adhesive sticker (as described in all three scenarios and, additionally, on the cardboard insert in the third scenario). The origin statement is found easily and read without strain.

The next issue to consider is whether repackaging of the articles subsequent to importation into the United States triggers the requirements of 19 CFR 134.26, Customs Regulations (19 CFR 134.26), in each of the three scenarios described above . Section 134.26 provides in pertinent part that if an imported article subject to these requirements is intended to be repacked in retail containers after its release from Customs custody, or if the port director has reason to believe that such article will be repacked after its release, the importer shall certify to the port director that if the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new container shall be marked to indicate the country of origin of the article in accordance with the requirements of this part.

The single collar bars described in the first scenario that are imported in the small polybags and packed into cartons of approximately 1,000 units each will be removed individually and Everson Ross will place an adhesive label on each bag indicating the article's country of origin. Subsequently, these articles will be repackaged in appropriate quantities when they are sold to Everson Ross' customers.

The second scenario will involve the importation of single collar bars packaged individually in a polybag and imported in properly marked bulk cartons. After importation, Everson Ross will repack the individually packed bars into sets of two and insert the two pieces into a pre-printed plastic bag with the Everson Ross logo and telephone and fax numbers. These bags will then be heat-sealed and an adhesive sticker will be placed on the same side as the pre-printed text will appear. The bars will remain in the polybags until sold to the ultimate purchaser.

Finally, the third scenario involves the bulk importation of the same single collar bars referred to in the second scenario. After importation, the bars will be mounted in pairs on cardboard inserts that are printed with the name of Everson Ross' customer, "Fechheimer," the phrase "Uniform Quartermaster," and the emblem of the New York City Fire Department. The cardboard insert will also be pre-printed in the lower right-hand corner with the phrase "Made in Taiwan." Everson Ross will then repack the sets of two bars each and mounted into a pre-printed plastic bag with the Everson Ross logo and telephone and fax numbers. The bags will be heat sealed and an adhesive sticker indicating the country of origin will be placed on the pre-printed side of the polybag.

All three scenarios described above undergo repackaging or manipulation operations described in section 134.26. Since the imported articles will not be received by the ultimate purchaser in the properly marked outer container, Everson Ross must comply with the certification process outlined in 19 CFR 134.26 so as to give assurance to Customs that the retail packages containing the ornamentation will be marked to indicate the country of origin.

The last issue to consider is whether the words "City of New York Fire Department" that appear in extremely small lettering inside the picture of the badge on the cardboard insert (third scenario) trigger the requirements of 19 CFR 134.46, Customs Regulations (19 CFR 134.46). Section 134.46, Customs Regulations (19 CFR 134.46) provides that

In any case in which the words "United States," or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manu- factured 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.

The "Made in Taiwan" statement of origin that appears in all capital letters that are at least three times larger than the New York reference on the bottom right of the same side of the cardboard insert is a clear, conspicuous mark which the ultimate purchaser will be able to find easily and read without strain. Therefore, we find that the requirements of section 134.46 are satisfied.

HOLDING:

The proposed country of origin marking on the submitted sample ornamentation, as described above, satisfies the country of origin marking requirements provided the importer executes the proper repackaging certification and the port director at the port of entry is satisfied that the articles will reach the ultimate purchasers in a properly marked polybag.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is 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

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