HQ 559631 - Ruling request concerning the country of origin marking requirements for machine cutting tools imported from China and Macedonia; ultimate purchaser; marking retail container in lieu of article; 19 CFR 134.1(d); 19 CFR 134.32(d) - United States International Trade Commision Rulings

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HQ 559631

June 21, 1996

MAR-2 RR:TC:SM 559631 AT

CATEGORY: MARKING

George W. Ash, Esq.
Dykema Gossett
400 Renaissance Center
Detroit, Michigan 482-43-1668

RE: Ruling request concerning the country of origin marking requirements for machine cutting tools imported from China and Macedonia; ultimate purchaser; marking retail container in lieu of article; 19 CFR 134.1(d); 19 CFR 134.32(d)

Dear Mr. Ash:

This is in response to your letter dated January 10, 1996, on behalf of Great Lakes Wholesale Tool, Co. ("GLWT")requesting a ruling concerning the country of origin marking requirements for machine cutting tools imported from China and Macedonia. We regret the delay in responding.

FACTS:

You state that GLWT is a tool wholesaler located in Redford, Michigan which sells machine cutting tools to tool and die shops that use/consume these tools while performing various manufacturing processes. You also state that GLWT does not sell these tools to ordinary consumers at retail.

According to your submission, during 1993 and 1994, GLWT purchased imported cutting tools (end mills and taps) from various U.S. supply houses. These tools were imported by someone other than GLWT and arrived at GLWT in cardboard boxes in bulk shipments. The country of origin of these tools was identified on the outside of the cardboard container. You state that GLWT repackaged these tools and sold them under GLWT's trade names (Bridgeport Taps and X-CELLO-O End Mills) as imported products. All the taps sold as Bridgeport Taps originate from Macedonia and all X-CELL-O end mills originate from China. You state that only 15 percent of these tools had a country of origin marking on the tool itself when it was received by GLWT--the remaining 85 percent had no country of origin marking at all. Because only a small portion of the tools were individually marked, during the repackaging operation, GLWT removed the individual country of origin marking on these tools, resulting in none of the tools being individually marked.

You state that on August 25, 1995, Customs seized 63 boxes of these cutting tools because of GLWT's intentional removal of the country of origin markings. You also state that these 63 boxes of tools are presently being held at GLWT's facility under Customs constructive seizure.

GLWT proposes to repackage the machine tools in containers which will clearly and conspicuously indicate the origin of the tools in the following manner:

1. The taps will be packaged in a plastic container, 12 to a box with a notification on the outside of the box that the contents are "Made in Macedonia". The boxes will vary with the size of the tap, but will be roughly 3" x 4" x 1".

2. The end mills will be packaged in a plastic sleeve that states "X-CELL-O End Mill" on the outside, then packaged 12 to a box with a notification that the contents are "Made in China". The boxes will also vary with the size of the end mill, but will roughly be 4" x

You have requested a ruling as to whether it would be acceptable to mark the containers in which the machine tools are repackaged with the country of origin, in the manner described above, in lieu of marking each individual tool itself.

ISSUE:

Do the imported taps and end mills have to be individually marked with their country of origin if the boxes in which the tools are packaged and distributed to tool and die shops in the U.S. are marked with the country of origin of the tools in the manner described above?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 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 134.31(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. Section 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.

In this case we find that the ultimate purchaser of the imported taps and end mills are the tool and die shops who use these tools for performing various manufacturing processes in the U.S.

An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. However, since the taps and end mills are repackaged in the U.S., whether the tools are excepted from individual marking under 19 CFR 134.32(d) is for the port director to decide. In this regard section 134.34, Customs Regulations (19 CFR 134.34), provides that an exception may be authorized in the discretion of the port director under 19 CFR 134.32(d) for imported articles which are to be repacked after 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 U.S.; (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.

Assuming that the port director is satisfied that the imported taps and end mills will be repacked in the manner set forth above, and that the other conditions set forth in 19 CFR 134.34 are met, the port director may authorize an exception under 19 CFR 134.32(d), in which case individual marking of the machine tools themselves would not be required.

The proposed country of origin marking "Made in Macedonia" which is to be printed on the containers in which the imported taps are repacked is not an acceptable country of origin marking for the imported taps pursuant to T.D. 95-46 (60 FR 28202)(May 30, 1995). In T.D. 95-46, Customs ruled that effective July 31, 1995, the country of origin markings "Macedonia", "Republic of Macedonia" or "Made in Macedonia" are not acceptable country of origin markings for the Former Yugoslav Republic of Macedonia. However, Customs stated that the abbreviations "FYR Macedonia," "Macedonia (FYR)," "F.Y.R.O.M. (Macedonia)," or similar markings may be used as acceptable country of origin markings for this country, provided the abbreviations "FYR" or "F.Y.R.O.M." are adjacent to the word "Macedonia" and the words are in a comparable size.

Also, since the U.S. reference "Bridgeport" is part of the trade name "Bridgeport Taps" that is to be printed on the containers in which the imported taps are repacked, the country of origin marking for the Former Yugoslav Republic of Macedonia must appear "in close proximity" to the "Bridgeport" reference or in some other conspicuous location and the words "Made in" or "Product of" must precede the country of origin. See, 19 CFR 134.47.

HOLDING:

The ultimate purchaser of the imported taps and end mills are the tool and die shops that use these tools to perform various manufacturing processes in the U.S.

Assuming the port director authorizes an exception from marking the imported taps and end mills pursuant to 19 CFR 134.32(d) and 19 CFR 134.34, the proposed method of marking described above satisfies the requirements of 19 U.S.C. 1304 and 19 CFR Part 134. Accordingly, the imported taps and end mills are excepted from being individually marked with their country of origin.

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, Director
Tariff Classification

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