HQ 560727 - Country of origin marking requirements; automobile parts; 19 CFR 134.46; T.D. 97-62; C.S.D. 90-31; HRL 559510; manufacture of auto parts does not involve printing; ultimate purchaser not misled by "Printed in U.S.A." - United States International Trade Commision Rulings

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HQ 560727

February 12, 1998

MAR-05 RR:TC:SM 560727 KKV

CATEGORY: MARKING

Richard Abbey, Esq.
Sarah M. Nappi, Esq.
Ablondi, Foster, Sobin & Davidow, P.C.
1130 Connecticut Avenue, N.W.
Suite 500
Washington, D.C. 20036

RE: Country of origin marking requirements; automobile parts; 19 CFR 134.46; T.D. 97-62; C.S.D. 90-31; HRL 559510; manufacture of auto parts does not involve printing; ultimate purchaser not misled by "Printed in U.S.A."

Dear Mr. Abbey and Ms. Nappi:

This is in response to your letter to the National Commodity Specialist Division, dated October 8, 1997, on behalf of Echlin, Inc., which has been forwarded to our office for response. In addition to your letter, which requests a ruling concerning the country of origin marking requirements for certain automotive parts manufactured abroad, a sample of the box containing the proposed country of origin marking has been submitted.

FACTS:

Echlin, Inc., (Echlin) imports automotive parts in bulk into the U.S. from manufacturers in various countries and repackages them in the United States for individual resale. The automotive parts are repacked into a cardboard box which, when supplied to Echlin, is labeled neither with the individual type of auto part to be packaged therein nor with the product's country of origin.

When received by Echlin, the box is marked in the following manner: the top flap of the box bears the words, "SUPPLIED FOR NAPA DISTRIBUTION CENTERS BY ECHLIN INC." Two adjacent side panels display the stylized name, "ECHLIN" the stylized name "NAPA" surrounded by a hexagonal logo, and the words "ELECTRICAL SYSTEMS PARTS" printed vertically down the panel. A third side panel displays the same stylized names, "ECHLIN" and "NAPA" and also contains a listing of various "Electrical Systems Parts" and "Fuel Systems Parts." At the bottom right corner of the third side panel are the words, "Printed in U.S.A.," which appear in lower case letters of approximately six point type. The fourth side panel of the box contains no printed words. The bottom of the box displays the stylized "ECHLIN" and "NAPA" names.

You propose to add further identifying information to the boxes at the time of repackaging to indicate the type of product contained in each box and the appropriate country of origin of the product to be placed inside. You propose to mark the boxes in the following manner: the bottom of the box would be stamped with a product number and description, and an adhesive label would be affixed to the blank side panel of the box. The adhesive label would be printed with a bar code and the words, "Made in [country of origin]" in approximately six point type. The side panel that contains the adhesive label would be adjacent to the side panel that contains the words, "Printed in the U.S.A."

ISSUE:

Whether the words, "Printed in U.S.A." which appear on a cardboard box containing imported automotive parts, trigger the application of the special marking requirements of 19 CFR 134.46.

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or 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. Congressional intent in enacting 19 U.S.C. 1304 was that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

Section 134.46, Customs Regulations (19 CFR 134.46) contains more restrictive marking requirements designed to alleviate the possibility of misleading an ultimate purchaser with regard to the country of origin of an imported article. Treasury Decision (T.D.) 97-62, published August 20, 1997 (62 Fed.Reg. 44211, August 20, 1997), amended section 134.46 to ease the requirement that whenever words appear on imported articles indicating the name of a geographic location other than the true country of origin of the article, the country of origin marking must appear in close proximity and in comparable size lettering to those words preceded by the words "Made in," "Product of," or other words of similar meaning. Effective September 20, 1997, the revised section 134.46 provides that:

In any case in which the words "United
States," or "American," the letters
"U.S.A.," any variation of such words or letters, or the name of any city or location in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced appear on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin of the article, there shall appear legibly and permanently in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," "Product of," or other words of similar meaning.

Therefore, under the revised section 134.46, the threshold determination in ascertaining the applicability of the stricter requirements is whether the marking on the box may deceive or mislead the ultimate purchaser regarding the country of origin of the automobile parts contained therein.

Customs has held that, under certain conditions, geographic names appearing in connection with imported articles do not necessarily trigger the requirements of 19 CFR 134.46 if the context in which the names are used is such that confusion by the ultimate purchaser regarding country of origin is unlikely (See Customs Service Decision (C.S.D.) 90-31, dated December 20, 1989). In some instances, the likelihood of consumer confusion has been alleviated by the appearance of the non-origin geographical reference in the context of surrounding language. In Headquarters Ruling Letter (HRL) 732329, dated July 12, 1989, Customs held that an address on a warranty card did not pose a risk of confusion to ultimate purchasers. In HRL 732816, dated November 24, 1989, Customs held that an address provided for guarantee inquiries, printed on the reverse side of a display ticket, did not raise the possibility of confusion or deception on the part of the ultimate consumer. In HRL 559626, dated October 17, 1996, Customs held that the name and address of a school printed in a spiral student agenda notebook was not misleading because the articles would be purchased by students, who would understand that their school address does not relate to the origin of the planner.

In another case, the phrasing of the non-origin geographical reference itself was found to alleviate potential customer confusion. In HRL 559267, dated October 20, 1995, Customs considered imported ceramic coffee canisters sold exclusively by mail order either as a promotional item to first time coffee purchasers, or by mail order offered from a catalogue. Customs determined that an ultimate purchaser of the coffee and coffee canisters would understand that "By Appointment to His Majesty The King of Sweden" referred not to the canister but to the coffee contained therein, and that an ultimate purchaser would not confuse the reference to the King of Sweden as any information concerning the origin of the canister.

In other instances, Customs has determined that the likelihood of consumer confusion is alleviated by the appearance of the non-origin geographical reference in the context of a decorative design or symbol. In HRL 732412, dated August 29, 1989, Customs found that the placement of the word "Kansas" on different parts of imported jeans did not trigger the requirements of 19 CFR 134.46 because such marking was used as a symbol or decoration and would not reasonably be construed as indicating the origin of the article on which it appeared. Likewise, in HRL 723604, dated November 3, 1983, Customs found that the letters "USA" on men's bikini-style swimming trunks did not trigger the marking requirements of 19 CFR 134.46 because such marking was used as a symbol or decoration and would not reasonably be construed as indicating the country of origin of the article. In C.S.D. 89-73, dated February 2, 1989, Customs held that an imported man's pullover shirt that prominently displayed the words "Christian Dior, 30 Avenue Montaigne, Paris 75008" across the back, did not invoke the application of 19 CFR 134.46 because the true country of origin of the article was indicated conspicuously on a label inside the neckband. In HRL 733695, dated January 15, 1991, women's trousers with metal rivets die-stamped with the words "Bonjour Paris", and containing a fabric label sewn into the waistband indicating the country of origin as Hong Kong, were not subject to the requirements of 19 CFR 134.46 since the rivets were decoration on the garment and an integral part of the design.

Customs has also determined whether the use of a non-origin geographical reference is misleading or confusing by considering the nature of the article upon which it appears. In HRL 559510, dated February 27, 1996, Customs held that the requirements of 19 CFR 134.46 were triggered by the phrase "Printed in U.S.A." on video sleeves containing imported video cassettes because the words "Printed in U.S.A." could be interpreted as referring to the video cassette and not the video sleeve.

However, unlike the video cassette sleeves in HRL 559510, supra, the subject auto parts are not created by any production process involving printing. Because the manufacture of automotive parts in no way involves printing, the only possible interpretation of the phrase, "Printed in U.S.A." is as a reference to the carton in which the auto part is contained. Thus, the very nature of the imported article obviates the likelihood that an ultimate purchaser would be misled or deceived as to the country of origin of the imported article by the use of the phrase "Printed in U.S.A." Additionally, we note that while the word "Napa" is also the name of a city in California whose surrounding valley is noted for wine production, it's use in connection with automotive parts is so unrelated in subject matter from the sphere of wine production that it is unlikely that an ultimate purchaser would confuse the reference to "Napa" as any information concerning the origin of automotive parts. Accordingly, we find that the special marking requirements of 19 CFR 134.46 are not triggered by the phrase "Printed in U.S.A.,"and the origin marking needs to satisfy only the general requirements of permanency, legibility, and conspicuousness under 19 U.S.C. 1304 and 19 CFR Part 134.

The sample box submitted displays the country of origin information, "Made in (country of origin)," printed in approximately six point type on an adhesive sticker together with a bar code. This sticker, affixed to a side panel adjacent to the panel bearing the manufacturer's listing of various "Electrical Systems Parts" and "Fuel Systems Parts," is also adjacent to the bottom panel stamped with the product number and description. In this location, the marking may be easily located and read by an ultimate purchaser. Accordingly, we find that the proposed country of origin marking is acceptable, as the requirements of 19 U.S.C. 1304 and 19 CFR Part 134 have been met.

HOLDING:

Based on the information provided, because the manufacture of automotive parts in no way involves printing, where boxes containing imported automotive parts are conspicuously marked with an adhesive sticker bearing the words, "Made in (country of origin)," the use of the phrase "Printed in U.S.A." on an adjacent surface would not mislead or deceive an ultimate purchaser as to the country of origin of the auto parts. Thus, the U.S. reference, "Printed in U.S.A." does not trigger the special marking requirements of 19 CFR 134.46 and the country of origin marking "Made in (country of origin)," affixed to a side panel adjacent to the panel bearing the manufacturer's listing of various "Electrical Systems Parts" and "Fuel Systems Parts" and adjacent to the bottom panel stamped with the product number and description, satisfies the general marking requirements of 19 U.S.C. 1304 and 19 CFR part 134 and is an acceptable country of origin marking for the imported automotive parts.

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
Commercial Rulings Division

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