NY 802919 - Country of origin marking of imported pewter items from Mexico. - United States International Trade Commision Rulings

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NY 802919

October 14, 1994

MAR-2-05:S:N:N3:115 802919

CATEGORY: MARKING

Mr. Robert A. McMahon
Rieck and Crotty
Xerox Centre-55 West Monroe St.
Chicago, IL 60603-5062

RE: Country of origin marking of imported pewter items from Mexico.

Dear Mr. McMahon:

This is in response to your letter dated October 5, 1994, on behalf of Great American Products, Inc., requesting a ruling on the country of origin marking requirements for an imported article which is processed in a NAFTA country prior to being imported into the U.S. Several marked samples were submitted with your letter for review.

Following is a detailed description of the manufacturing process for the emblems, keychains, pins, bolo ties and belt buckles that will be color-filled (or painted) in Mexico:

All of the described items above, are produced from U.S. components at the Company's facility in Illinois from a rubber mold material and white metal alloy. They are centrifugally cast in the rubber mold out of the white alloy. Once cast, the Company manufactures the production mold at its U.S. facility. They are then removed from the mold and pass through a quality control. These items are pewter blacked, cleaned, buffed and lacquered. In Mexico, they will be color-filled.

In your letter, you have expressed hope and interest in marking these products "Made in the USA".

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 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 country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the interim amendments to the Customs Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3, 1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim amendments took effect on January 1, 1994 to coincide with the effective date of the NAFTA. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in T.D. 94-4 (adding a new Part 102, Customs Regulations). The marking requirements of these goods are set forth in T.D. 94-1 (interim amendments to various provisions of Part 134, Customs Regulations).

Section 134.1(b) of the interim regulations, defines "country of origin" as
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).

Section 134.1(j) of the interim regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the interim regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the interim regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.

You state that the imported pewter items are processed in a NAFTA country "Mexico" prior to being imported into the U.S. Since, "Mexico" is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported pewter items are a good of a NAFTA country", and thus subject to the NAFTA marking requirements.

Part 102 of the interim regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the interim regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Applying the NAFTA rules of origin set forth in Part 102 of the interim regulations to the facts of this case, we find that the imported pewter items are goods of a NAFTA country for marking purposes.

The following Rules of Origin apply to your specific situation:

Section 102.14 Goods returned.

No good, last advanced in value or improved in condition outside the United States has United States origin. If under either section 102.11 or section 102.16 such a good is determined to be a good of the United States, that determination will be disregarded and the country of origin of the good will be the last foreign country in which the good underwent production, other than minor processing. However, if the good undergoes only minor processing outside the United States, the country of origin of the good is the last country in which the good underwent production, including minor processing. Color-filling apparently "fits" a minor processing.

Section 134.43 Methods of marking specific articles

(e) Articles returned to the United States after having been advanced in value or improved in condition outside the United States. Where the country of origin of an article is determined in accordance with section 102.14, part 102 of this Chapter, such article, at the choice of the importer, exporter or producer of the good, may be marked, as appropriate, in a manner such as the following:

(1) Assembled in (name of foreign country) from U.S. components; (2) Further processed in (name of country of origin) from U.S. materials; (3) Product of (name of foreign country) made from U.S. components; or
(4) Product of (name of foreign country).

Categories (2), (3) or (4) will apply to your products. The choice is up to your client, the exporter or the producer.

For your information, the Rules for determining the Country of Origin of a good for purposes of Annex 311 of the NAFTA and Rules of Origin applicable to imported merchandise have been published in the Federal Register. They can be found in Part ll Department of the Treasury, Monday January 3, 1994, on pages 110-145.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is 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.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave., NW, Franklin Court, Washington, DC 20229.

Sincerely,

Jean F. Maguire
Area Director

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