HQ 559896 - 19 CFR 102.21; wholly assembled; country of origin marking of shirts; - United States International Trade Commision Rulings

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HQ 559896

October 16, 1996

MAR-2-05 RR:TC:SM 559896 DEC

CATEGORY: MARKING

Mr. Lincoln Blackwood
Paul M. Voight, CHB
P.O. Box 165140
Ft. Lauderdale, Florida 33316-5140

RE: 19 CFR 102.21; wholly assembled; country of origin marking of shirts;
19 CFR 134.47; HRL 734476; T.D. 54640(6)

This is in response to your letter May 3, 1996, requesting a country of origin marking ruling on behalf of your client regarding the country of origin marking of a shirt. A sample of the shirt was submitted with your request.

FACTS:

The importer, T.C. Lyle, Incorporated, DBA Flyshacker Clothing Company, intends to assemble shirts in Guatemala from U.S.-cut components for its customer Trek Bicycle Corporation. The shirt will be marked "assembled in Guatemala" in the center of the neck. Trek Bicycle Corporation will have their official logo "TREK USA" embroidered on the breast pocket of the shirt. You state that the logo is a registered trademark.

The assembly of the shirts at issue begins when rolls of piece goods are purchased from a U.S. mill and trucked to Miami, Florida where they will be cut to shape. After the fabric is cut, the pieces are sent to Guatemala to be sewn. When the goods arrive, the shirt pieces are sewn and the pocket pieces are sent to the embroidery shop for sewing. After the pockets are finished, they are sent to the factory for final assembly of the shirt. When the shirts are completely finished, they will be washed, pressed, and bagged. The shirts will then be boxed and loaded onto a container destined for the U.S.

ISSUE:

1. What is the country of origin of the shirts produced in the manner described above?

2. Whether the shirt described above satisfies the country of origin marking requirements.

LAW AND ANALYSIS:

Country of Origin

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations (codified at 19 CFR 102.21), in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section".

The shirt is classified in heading 6205, Harmonized Tariff Schedule of the United States (HTSUS). Paragraph (e) states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:"

6201-6208 If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

Section 102.21(b)(6) defines wholly assembled as :

The term "wholly assembled" when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as "wholly assembled" in a single country, territory, or insular possession.

The shirts are wholly assembled in Guatemala. Accordingly, the country of origin of the shirt will be Guatemala.

Country of Origin Marking

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 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. 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. Therefore, 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, section 134.46, Customs Regulations (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.
Customs has ruled that in order to satisfy the close proximity requirement, the country of origin marking must appear on the same side(s) or surface(s) in which the name of the locality other than the country of origin appears. 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.

However, section 134.47, Customs Regulations (19 CFR 134.47), provides that when as part of a trademark or trade name or as part of a souvenir marking, the name of a location in the U.S. or "United States" or "America" appear, the article shall be legibly, conspicuously, and permanently marked to indicate the name of the country of origin of the article preceded by "Made in", "Product of", or other similar words, in close proximity or in some other conspicuous location. In other words, if the question concerns a trade name or trademark, the country of origin marking needs only to meet the general standard of conspicuousness.

The purpose of both provisions is the same; namely, to prevent the ultimate purchaser from being misled or deceived when the name of a country or place other than the country of origin appears on an imported article or its container. The critical difference between the two provisions is that 19 CFR 134.46 requires that the name of the actual country of origin appear "in close proximity" to the U.S. reference and in lettering of at least comparable size. By contrast, 19 CFR 134.47 is less stringent, providing that when as part of a trade name, trademark or souvenir mark, the name of a location in the U.S. or "United States" or "America" appears on the imported article, the name of the country of origin must appear in close proximity or "in some other conspicuous location." In other words, the latter provision triggers only a general standard of conspicuousness. In either case, the name of the country of origin must be preceded by "Made in", "Product of", or other similar words such as "Assembled in."

With regard to the matter currently under consideration, "TREK" is a registered trademark and will not trigger the special marking requirements of 19 CFR 134.46 because the word "USA" is used in conjunction with a trademark. Accordingly, the less stringent requirements of 19 CFR 134.47 are applicable. Therefore, the shirt must be marked with its country of origin in a conspicuous location. The sample shirt has a sewn-in fabric tag in the neck of the shirt with the country of origin indicated which may be found easily and read without strain by a potential ultimate purchaser. The sample shirt is conspicuously marked.

Customs has determined that country of origin marking appearing on the inside center of the neck of a shirt midway between the shoulder seams or in that immediate area is conspicuous within the meaning of 19 U.S.C. 1304 and is, in fact, the requisite
location. In Headquarters Ruling Letter (HRL) 734476, dated February 19, 1992, Customs found that the shirt at issue failed to satisfy the location requirement prescribed by T.D. 54640(6) since the country of origin label is significantly to the right of the center of the neck area and is obscured by the collar. After examining the garment at issue in this case, it is our finding that the country of origin label appears in the immediate area of the neck midway between the shoulder seams.

HOLDING:

On the basis of the information and samples submitted, we find that the country of origin of the shirts will be Guatemala and the marking on the shirt described above satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134.

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

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