HQ 559934 - Internal Advice 23/96; country of origin marking requirements of certain clocks; Special - United States International Trade Commision Rulings

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HQ 559934

October 23,
1996

MAR-05 RR:TC:SM BLS 559934

CATEGORY: MARKING

Port Director
U.S. Customs Service
1205 Royal Lane
Dallas/Fort Worth, TX 75261-4818

RE: Internal Advice 23/96; country of origin marking requirements of certain clocks; Special
Marking requirements; Chapter 91; Additional U.S. Note 4; 19 CFR 134.41(b); 19 CFR 134.43(b); 19 CFR 11.9

Dear Sir:

This is in reference to a letter dated March 4, 1996, from Evans and Wood & Co., Inc., customhouse brokers, on behalf of Hobby Lobby Stores, requesting internal advice in connection with the country of origin marking of certain clocks. Samples of the articles have been submitted with the request.

FACTS:

The article in question is a table clock with a clock movement set into a plastic housing with a plastic crystal. The clock is set into a plastic cap which is then set into a ceramic figurine frame. The clock parts including the movement are made in Taiwan. There is a rectangular-shaped raised box on the back of the movement housing in which there are inscribed the following raised letters:

TaKeHoPe
EVERTANK INDUSTRIAL CO., LTD.
TAIWAN

The ceramic frame is made in China, and is assembled to the clock in China. The back of the frame is marked with a sticker near the bottom which reads "Made in CHINA."

ISSUE:

Whether the marking on the sample table clocks complies with the country of origin marking requirements.

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, and permanently as the nature of the article (or container) will permit, in such 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 of 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 134.41(b), Customs Regulations (19 CFR 134.41(b)), provides that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain.

It is the position of the Customs Service that the country of origin of a watch or clock is the country of manufacture of the watch or clock movement. The addition of the hands, dial, case, or watchband add definition to the time piece but do not change the character or use of the watch or clock movement which is the "guts" of the watch or clock. Accordingly, in order to satisfy the requirements of 19 U.S.C 1304, the clock must be marked with the name of the country of manufacture of the clock movement. The country of origin marking must also be legible and in a conspicuous place.

Section 134.43(b), Customs Regulations (19 CFR 134.43(b)), in conjunction with section 11.9, Customs Regulations (19 CFR 11.9), provides that clocks must be marked in accordance with the special requirements of Chapter 91, Additional U.S. Note 4 of the Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202). This note (hereinafter "Note 4") requires that any clock movement or case provided for in the subpart, whether imported separately or attached to any article provided for in the subpart, shall not be permitted to be entered unless conspicuously and indelibly marked by cutting, die-sinking, engraving, or stamping
or mold-marking (either indented or raised), as specified in the provisions of the Note. This marking is mandatory.

Section (b) of Note 4 requires that clock movements shall be marked on the most visible part of the front or back plate to show the name of the country of manufacture; the name of the manufacturer or purchaser; and, in words, the number of jewels, if any, serving a mechanical purpose as frictional bearings. Section (d) of Note 4 requires that clock cases provided for in Chapter 91, HTSUS, shall be marked on the most visible part of the outside of the back to show the name of the country of manufacture. The country of manufacture for these requirements refers to where the movement and cases were manufactured, rather than where the clock was made.

In the instant case, the clock movement has markings on the back plastic housing to indicate the country of manufacture, Taiwan, and the name of the manufacturer, "TaKeHoPe - Evertank Industrial Co. Ltd.". It is also marked to indicate that it has "No (0) Jewels." However, while the country of origin markings are in raised letters, it is our opinion that this marking is neither legible nor conspicuous due to its small size and dark background, and cannot be read without strain. Therefore, it does not satisfy the requirements of 19 U.S.C. 1304 and the implementing regulations. The next issue to be addressed is whether the ceramic figurine frame constitutes a case provided for in Chapter 91. If so, the special marking requirements of Note 4 of Chapter 91 will apply and only the methods of marking and location as specified in the Note will be acceptable.

It is our opinion that the ceramic figurine frame is properly classified under subheading 9112.80, HTSUS, which provides for "Clock cases and cases of a similar type..., Other cases." Therefore, we find that the frame constitutes a clock case for purposes of Note 4 and the special marking requirements of the Note are applicable.

The sample frames submitted are marked on the back near the bottom with an adhesive sticker which reads "Made in CHINA." This marking does not satisfy the special marking requirements of Note 4 since it does not utilize one of the specific methods of marking prescribed in the Note. An acceptable method of marking the ceramic frame would be permanent stamping on the outside of the back of the ceramic frame in the most visible location.

HOLDING:

(1) The country of origin marking on the back plastic housing of the movement does not satisfy the requirements of 19 U.S.C. 1304 and 19 CFR 134.41 since it is not legible and cannot be read without strain.

(2) The ceramic figurine frame is classifiable under subheading 9112.80 HTSUS, which provides for "Clock cases and cases of a similar type..., Other cases." Therefore, we find that the frame is considered a clock case provided for in Additional U.S. Note 4, HTSUS, and must be marked in accordance with the special marking requirements for marking clock cases specified under Note 4. Further, the value of the ceramic frame should be included in determining the value of the clock case for purposes of calculating the duty due.

This decision should be mailed by your office to the internal advice requester no later than 60 days from the date of this letter. On that date the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs rulings Module in ACS and to the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.

Sincerely,

John

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