HQ 560266 - Country of origin marking for surgical pack wrappers; container; repacking; 19 CFR 134.26 - United States International Trade Commision Rulings

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HQ 560266

January 17, 1997

MAR-2-05 RR:TC:SM 560266 MLR

CATEGORY: MARKING

Lawrence R. Pilon, Esq.
Hodes & Pilon
33 North Dearborn, Suite 2204
Chicago, IL 60602-3109

RE: Country of origin marking for surgical pack wrappers; container; repacking; 19 CFR 134.26

Dear Mr. Pilon:

This is in reference to your letter of January 10, 1997, requesting a ruling on behalf of Medline Industries, Inc. ("Medline"), concerning the country of origin marking requirements for surgical pack wrappers and their containers. A sample of a surgical pack wrapper was submitted.

FACTS:

The article at issue is a surgical pack wrapper (hereinafter "wrappers"). It is stated that Medline will import the wrappers in bulk, repack them in containers, and sell them exclusively to hospitals and surgical centers. The wrappers are used by surgical and medical staff during surgical procedures to protect against contamination from airborne contaminants and bodily fluids. Medline wishes only to mark the outside container in which the wrappers are repacked.

ISSUE:

What are the country of origin marking requirements of the wrappers at issue?

LAW AND ANALYSIS:

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 (or its container) 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. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

The first question that must be resolved is who is the ultimate purchaser of the imported wrappers. Section 134.1(d), Customs Regulations {19 CFR 134.1(d)}, defines an 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 C.S.D. 88-126 (August 11, 1988), Customs determined that the ultimate purchaser of patient identification bracelets, used on patients when they were admitted to hospitals, was the hospital and not the patient. Similarly, in this case, it is stated that the wrappers will be sold exclusively to hospitals for use during surgical procedures. Accordingly, we find that the hospitals will be the ultimate purchasers of the wrappers.

The second question to be resolved is whether it is sufficient to only mark the outside container in which the wrappers are repackaged. Section 134.32(d), Customs Regulations {19 CFR 134.32(d)}, excepts an article from marking if its container will reasonably indicate the origin of the article. In C.S.D. 89-56 (December 21, 1988), Customs considered surgical towels which were washed, folded, and placed in individual packages after importation. Customs determined that it was not necessary to mark the individual surgical towels, but that it was appropriate to only mark the package in which the towels were packed with the country of origin of the towels. Similarly, in this case, it will be acceptable to only mark the outside container in which the wrappers are packaged with their country of origin, provided the ultimate purchaser (the hospitals) receives the wrappers in these properly marked containers.

It is also stated that the wrappers are imported in bulk and will be repacked after importation. If the wrappers are imported in properly marked bulk containers, 19 CFR 134.26 will apply, as the certification requirements specified in that section are applicable to articles marked with their country of origin, or to those articles which are imported in properly marked containers. The purpose of 19 CFR 134.26 is to ensure that the new container in which the article is repacked contains the country of origin of the article.

Section 134.26, Customs Regulations (19 CFR 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 having custody of the article, has reason to believe such article will be repacked after its release, the importer shall certify to the port director that: (1) 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....

Therefore, this procedure may be used if the container in which the wrappers are packed is properly marked with the wrapper's country of origin. If the wrappers are not imported in properly marked bulk containers and the wrappers also are not individually marked, then the procedures of 19 CFR 134.34(a) shall be used. Please note that only 19 CFR 134.26(a) provides that the certification statement may be submitted in blanket form to cover all importations of a particular product for a given period.

Since a sample of the container in which the wrappers will be repackaged was not submitted, we cannot comment upon the acceptability of its marking. However, please note that if the name of a locality other than the wrapper's country of origin is on the container, the requirements of 19 CFR 134.46 must be satisfied.

HOLDING:

Based on the facts presented, the wrappers may be excepted from marking pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d) and only the outer container in which the wrappers are packed must be marked with the country of origin of the wrappers, as the ultimate purchaser of the wrappers is the hospital to which the wrappers are sold. Furthermore, the wrappers may be repackaged after their release from Customs custody if the requirements of 19 CFR 134.26 are satisfied, provided the wrappers are imported in properly marked bulk containers. The requirements of 19 CFR 134.26 will be satisfied if the wrappers are imported in properly marked containers, and Medline repackages the wrappers in properly marked containers.

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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