United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1997 NY Rulings > NY B87534 - NY B87595 > NY B87538

Previous Ruling Next Ruling
NY B87538





August 11, 1997

MAR-2 RR:NC:1:108 B87538

CATEGORY: MARKING

Ms. Teresa A. Gleason
Baker & McKenzie
815 Connecticut Avenue, N.W.
Washington, D.C. 20006-4078

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED RECORDED VCR CASSETTES; ARTICLE 509

Dear Ms. Gleason:

This is in response to your letter dated July 9, 1997 on behalf of your client, MEDIACOPY, 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. A marked sample was not submitted with your letter for review.

You state that MEDIACOPY is a duplicator of licensed copies of films which it records on VCR cassettes. MEDIACOPY proposes to duplicate and assemble VCR cassettes in Mexico as follows: unrecorded tape magnetically coated and cut to width of Chinese, German, Korean, or U.S. origin, plastic VCR cassette housings of Chinese origin, and packaging material of U.S. and other country origin will be exported to Mexico from the United States, where the following operations will take place: 1) the tape will be cut to length and assembled with the cassette housings; 2) the images will be recorded on the cassette from a master film recording made in the United States and exported to Mexico; and 3) the assembled and recorded cassette will be packaged. The finished tape will then be imported into the United States for subsequent retail sale.

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 appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

Section 134.1(b) of the 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 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 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 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 recorded VCR cassettes are processed in 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 VCR cassettes are goods of a NAFTA country, and thus subject to the NAFTA marking requirements.

Part 102 of the 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 regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Since the finished recorded VCR cassettes are neither wholly obtained nor produced in a single country nor produced exclusively from domestic materials, sections 102.11(a)(1) and (2) are not applicable. Therefore, it must be determined whether, pursuant to 102.11(a)(3), the foreign materials incorporated into the finished cassettes meet the specific tariff rule of section 102.20. The unrecorded magnetic tape of various origins is classified in heading 8523; the plastic cassette housings are classified in either heading 3923, 3926, or 8522 (this issue is unresolved at this time, but final classification is incidental to the present discussion), and the packaging materials of U.S. or other origin are classifiable with the good that undergoes processing and are to be disregarded in this situation (section 102.15). Through the process of recording and assembly in Mexico, the finished recorded VCR cassette undergoes a change from headings other than 8524 to heading 8524, thereby satisfying the specific tariff rule of section 102.20(o)(Section XVI: Chapters 84 through 85). Thus, we find that the imported recorded VCR cassette is a good of Mexico for marking purposes.

The recent regulatory ammendment to C.R. 134.43(e), published as a final rule in the Federal Register, June 6, 1996 (61 Fed. Reg. 28932), authorizes the use of the marking "Assembled in" only when the country of origin is the country of final assembly. As a result of this amendment, Customs has stated that the terms "Made in" and "Assembled in" are always words of similar meaning. Therefore, based on the circumstances you describe, the recorded VCR cassettes may be marked "Assembled in Mexico" on the plastic shrinkwrap covering the cassette (C.R. 134.41 (b)).

Finally, if the cassette sleeve contains a reference to a country other than Mexico, the country of origin mark must be imprinted on the shrinkwrap legibly and permanently and in close proximity to the other-country reference and in at least comparable size (C.R. 134.46).

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Harvey Kuperstein at 212-466-5672.

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,

Robert B. Swierupski
Chief, Metals & Machinery Branch

Previous Ruling Next Ruling