HQ 734708 - Country of Origin Marking of key engraving kit and related software. 19 CFR 134.32(d); marking of components. - United States International Trade Commision Rulings

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HQ 734708

August 24, 1992

MAR-2-05 CO:R:C:V 734708 RC

CATEGORY: MARKING

Mr. Randy Willette
A.N. Deringer, Inc.
30 West Service Road
Champlain, New York 12919-9703

RE: Country of Origin Marking of key engraving kit and related software. 19 CFR 134.32(d); marking of components.

Dear Mr. Willette:

This is in response to your letter of June 19, 1992, requesting a ruling on the country of origin marking requirements for a "keywatch" kit.

FACTS:

The product imported is a kit containing primarily some software, an instruction booklet, an electric engraver, and a metal cabinet. The kit is sold in a retail box, a sample of which you submitted. Other components include key tags, key rings, and labels. All the items are manufactured in Canada, except for the engraver which is currently manufactured in the United States, but future models may be manufactured in China or Taiwan.

ISSUE:

Whether the country of origin marking may properly state "All Components Made in Canada, except Engraving Tool - Made in USA". In the future, the engraving tool may be identified as a product of either China or Taiwan.

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 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 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 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, 302 C.A.D. 104 (1940).

Section 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. Here, the ultimate purchaser is the one who buys the kit at retail.

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.

Neither the statute nor the Customs Regulations, contain any provisions regarding the marking of sets, mixtures or composite goods. In the absence of any special requirements, the general country of origin marking requirements apply, i.e., every article that is imported into the U.S. must be marked to indicate its country of origin as determined by where the article underwent its last substantial transformation. If one of the items is manufactured in the U.S., it would be excepted from marking under section 134.32(m), Customs Regulations (19 CFR 134.32(m)), pertaining to U.S.-origin articles exported and returned. See T.D. 91-7, dated January 16, 1991.

The sample retail box has the following address on its backside: "Keywatch, 134 Simcoe, Montreal, Quebec H3P 1W5, (514) 341-3944." This address alone is insufficient to indicate the country of origin of the key set because it lacks the name of the country, "Canada". Additionally, if the key engraver is to be manufactured in a country other than the United States, the retail box must specifically indicate the country of origin.

It is proper for the retail package to contain the following country of origin marking, "All Components Made in Canada, except Engraving Tool - Made in USA", or "Engraving Tool - Made in China", or "Engraving Tool - Made in Taiwan". It would not be necessary to indicate the country of origin of the engraver, if it is made in the U.S. However, if you choose to include any reference to the U.S.A or an American locality on the article or container, then Section 134.46, Customs Regulations, applies and its provisions must be satisfied. The country of origin, here, Canada, and the marking containing the U.S. locality must appear in close proximity and in at least a comparable size.

HOLDING:

It is acceptable to use the following marking for the submitted sample: "All Components Made in Canada, except Engraving Tool - Made in USA", or "Engraving Tool - Made in China", or "Engraving Tool - Made in Taiwan". The submitted sample is not marked with the country of origin so a ruling cannot be issued on the conspicuousness of any particular marking.

Sincerely,

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