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HQ 734688





October 8, 1992

MAR-2-05 CO:R:C:V 734688 RC

CATEGORY: MARKING

Mr. Eugene Lurye
New World Products Company
1040 West Fullerton Avenue
P.O. Box 499
Addison, Illinois 60101

RE: Country of origin marking of carbide replacement inserts; 19 CFR 134.32(d); Articles Exempt; Container Marking.

Dear Mr. Lurye:

This is in response to your letter of April 29, 1992, requesting a classification and marking ruling for imported carbide replacement inserts from Russia. A classification ruling has been issued as HQ 951928, dated June 17, 1992. The following ruling addresses the country of origin marking requirements.

FACTS:

The articles in question are cemented tungsten carbide replacement inserts containing a cobalt binder which will be used on machine tools.

The submitted sample inserts are housed in a compartmentalized plastic container measuring approximately 1/2 inch. The container holds equilateral triangle-shaped inserts. The articles are marketed by catalogue and the illustrations describe numerous inserts of different shapes and designs (for example, square, diamond, round). All of the inserts are imported unmounted.

Mr. Foertsch, of your company, indicated that the inserts will be packaged in containers that are similar to the sample container. The containers will be sealed with non-removable labels that can only be opened by cutting them at the point where the covers and the containers meet. The label will contain the company name, as well as other pertinent content data in addition to the country of origin. The inserts will only be sold in full containers unopened prior to their sale to manufacturers. For purposes of this ruling we assume that the inserts are imported in the sealed marked containers.

ISSUE:

Whether it is sufficient to mark the country of origin of the inserts on the containers in lieu of the inserts themselves.

LAW AND ANALYSIS:

The Marking Statute

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 United States 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 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 primary purpose of the country of origin marking statute is to require the goods to be marked 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, 302 C.A.D. 104 (1940).

Section 134.1(d), Customs Regulations (19 CFR 134.1(d)), defines the "ultimate purchaser" generally as the last person in the United States who will receive the article in the form in which it was imported. The marking must be conspicuous to the ultimate purchaser.

The country of origin for marking purposes is defined by section 134.1(b), Customs Regulations (19 CFR 134.1(b)), to mean the country of manufacture, production, or growth of any article of foreign origin entering the U.S.

The Article Marking Exceptions

According to section 134.32(d), Customs Regulations (19 CFR 134.32(d)), articles in which their containers are marked to reasonably indicate the origin of the articles are themselves excepted from marking requirements. For the marking of the container to be adequate, Customs must be satisfied that in all reasonably foreseeable circumstances the article will reach the ultimate purchaser in said properly marked container. A sealed container, such as a blister pack is an example of such a container.

It must be determined whether it is likely that the inserts will only be sold in full containers unopened prior to their sale to ultimate purchasers, manufacturers (HQ 731768 dated December 8, 1988). Here, it is reasonable to assume that the inserts will remain in the compartmental container because the label which will seal the container also gives all the product information. Furthermore, the container is specially designed to hold the inserts. Therefore, it is likely that the carbide replacement inserts will reach the ultimate purchaser, in this case, manufacturers, in containers marked with the country of origin. Given all of the above information, putting the country of origin marking on the container instead of on the inserts themselves is sufficient.

HOLDING:

It is sufficient to mark the plastic containers of carbide inserts in lieu of the inserts themselves. The marking must be conspicuous, legible, indelible, and permanent. When delivered to ultimate purchasers in properly marked containers, the carbide replacement inserts may be excepted from country of origin marking.

Sincerely,


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