HQ 560156 - Country of origin marking requirements for imported gauges; OEM; replacement parts; ultimate purchaser; container marking - United States International Trade Commision Rulings

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HQ 560156

February 25, 1997

MAR 2-05 RR:TC:SM 560156 MLR

CATEGORY: MARKING

James J. Parks, Esq.
Gabrian & Parks
2525 Telegraph, Suite 302
Bloomfield Hills, MI 48302

RE: Country of origin marking requirements for imported gauges; OEM; replacement parts; ultimate purchaser; container marking

Dear Mr. Parks:

This is in response to your letter dated October 3, 1996, to U.S. Customs in New York, requesting a ruling on behalf of H.O. Trerice Co. ("Trerice"), concerning the country of origin marking requirements for imported gauges. Samples and pictures were submitted with your request.

FACTS:

It is stated that Trerice intends to import several types of pressure gauges for sale in the U.S. to original equipment manufacturers ("OEMs") and to replacement part customers. Based upon the pictures submitted, the dial face of each gauge will contain the name "H.O. Trerice Co" or "Trerice"and will not contain any geographical references. Trerice does not intend to mark the gauges themselves with their country of origin, but only wishes to mark the container in which they are packed with the country of origin information similar to the situation presented in Headquarters Ruling Letter (HRL) 558638 dated November 18, 1994. The container Trerice wishes to use, whether selling to an OEM or to a replacement part customer, is a plain brown box measuring approximately 5 x 5 x 1 1/4 inches. The sample submitted is labeled by means of a sticker, measuring 4 « x 2 inches, wrapped around the side and top of the box, and indicates the country of origin and gauge specification information.

Additionally, you have submitted a container, measuring approximately 3 « x 3 x 1 « inches, with a country of origin marking on the top flap along with the gauge's specifications. Another container you have submitted, measuring approximately 5 x 5 x 2 inches, is a plain white box with a small gold sticker, measuring « x 1/4 inch, placed on the top of the box indicating the country of origin, while the gauge's specifications are on the side of the box.

ISSUE:

What are the country of origin marking requirements for the imported gauges which are sold to OEMs and replacement part customers in the U.S.?

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 its 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; C.A.D. 104 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. 1304.

In Headquarters Ruling Letter (HRL) 558638 dated November 18, 1994, Customs determined that when imported gauges were sold to OEMs, either the gauges or the outside container in which the gauges were packed could be marked with the gauges' country of origin. When imported gauges were sold to replacement part customers, HRL 558638 determined that either each gauge could be individually marked and/or each container in which the gauges were packed could be marked with the country of origin of the gauge in accordance with the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134.

HRL 558638 also considered two boxes, similar to the ones submitted in this case. The first box was a plain white box containing the country of origin marking of the gauge on the flap of the box, along with product information. The words "Made in China", printed on the top flap of the box, were in black 6 point lettering. Other product information, such as the part number, the rated PSI of the gauge, diameter of the gauge dial and type of socket threading also appeared on the top flap above the country of origin marking. No other markings appeared on the box. HRL 558638 found that the country of origin marking was conspicuous, permanent and legible in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. The origin marking "Made in China" was easy to find and read and was located in a place where an ultimate purchaser would look and find the marking since other product information, such as the PSI of the gauge and diameter of the dial was printed on the same flap directly above the country of origin.

The other type of box considered in HRL 558638 contained the same country of origin and product description information on the flap, but also was printed with the trademark and trade names of Ametek, U.S. Gauge. The words "Made in China" were printed on the top flap of the box in black 6 point lettering. Other product information, such as the part number, the rated PSI of the gauge, diameter of the gauge dial and type of socket thread also appeared on the top flap. The company's name appeared on the bottom of all four sides of the box, and directly below the company's name, on the front and bottom panel of the box, U.S. Gauge's trade name "U.S. Gauge Division" was printed in white 8 point lettering (over a blue background). HRL 558638 determined that the trademark "U.S. Gauge" printed on the bottom of the front and back panels of the box triggered the special marking requirements of 19 CFR 134.47, but that the marking "Made in China" appearing on the top flap of the box, directly below other product information, was conspicuous, permanent and legible and satisfied the marking requirements of 19 CFR 134.47.

HRL 558638 also considered whether it was acceptable to mark the two different styles of boxes with the country of origin of the gauges in lieu of marking the gauges themselves. Referring to 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d), which provides that an article may be excepted from marking if the marking of a container of such article will reasonably indicate the origin of such article, HRL 558638 determined that if Customs is satisfied that the gauges will remain in the cardboard boxes until they reached the ultimate purchaser and if the boxes were marked in the manners described above, the individual gauges would be excepted from marking under these provisions.

Similarly, we find that the ultimate purchasers in this case are the OEMs or replacement part customers. Trerice proposes to use a plain brown box which will contain a sticker wrapped across one side panel and a portion of the top of the box. While the country of origin marking is on the top of the box and the gauge's specifications are on the side of the box, since this information is on the same sticker and the marking is in approximately 9 point lettering, we find the marking to be conspicuous, permanent, and legible. You have also submitted other containers, but you indicate that Trerice will not be using these boxes. Accordingly, we cannot issue you a ruling regarding the acceptability of the labeling on these boxes as it would be hypothetical in nature. However, we note that as to the container with the words "U.S. Gauge Division" on box, this container appears to be identical to the one discussed in HRL 558638 and determined to meet the requirements of 19 U.S.C. 1304. As to the white plain box submitted, it is our opinion that while the country of origin label is on the top flap of the box where it would be seen once the box is opened, the sticker should be larger, especially since it is not on the same side as the other information printed about the gauge. Additionally, we note that because of the smooth shiny finish of the box, this type of sticker does not adhere well to the box.

Lastly, you have indicated that the gauges will reach the ultimate purchaser in these marked boxes. As held in HRL 558638, if the port director is satisfied that the gauges will remain in the boxes until they reach the ultimate purchaser and if the plain brown box is marked in the manner described above, the individual gauges may be excepted from marking under 19 CFR 134.32(d), especially since you state that the gauges themselves will only contain the words "H.O. Trerice" or "Trerice".

HOLDING:

Based upon the information and samples presented, the ultimate purchasers of the imported gauges will be the OEMs and replacement part customers. Therefore, for the imported gauges sold to OEMs, the gauges will be excepted from individual country of origin marking provided the outermost container is marked with the country of origin of the gauges and the port director is satisfied that the gauges will reach the OEMs in these marked containers. Furthermore, imported gauges sold as replacement parts and packaged in the plain brown cardboard boxes marked with the country of origin as described above, are excepted from individual country of origin marking, provided the port director is satisfied that the gauges will remain in these marked boxes until they reach the ultimate purchasers of the gauges.

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