HQ 560941 - Country of origin marking for products known as a "soft thermal bottle carrier" and a "soft jug"; conspicuous; 19 CFR 134.41; 19 CFR 134.46 - United States International Trade Commision Rulings

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HQ 560941

August 18, 1998

MAR-2 RR:CR:SM 560941 RSD

CATEGORY: MARKING

Ed Ackerman, Esq.
Asher Rubinstein, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman, LLP 245 Park Avenue
New York, NY 10167-3397

RE: Country of origin marking for products known as a "soft thermal bottle carrier" and a "soft jug"; conspicuous; 19 CFR 134.41; 19 CFR 134.46

Dear Messrs Ackerman and Rubinstein:

This is in response to your letter dated April 17, 1998, on behalf of Outer Circle Products, Ltd. ("Outer Circle") requesting a ruling on the acceptability of the country of origin marking for products known as a "soft bottle carrier" and a "soft jug". Samples of the products were submitted for our consideration.

FACTS:

The first product is commercially known as a "soft bottle carrier". It consists of a soft-sided vinyl thermal covering with a zipper closure. The closure extends the full length of the covering and allows for the insertion and removal of a semi-rigid plastic bottle. The clear plastic bottle that fits inside the thermal covering is produced in the United States and is placed inside the thermal covering after the covering is imported. The combined bottle and thermal covering are sold together as one product.

Inside the thermal covering is a textile label which is sewn into a vertical seam that is proximate to the zipper closure and about midway down its length. The label states the company name "Outer Circle Products Ltd.", and "Chicago, Illinois". The words Made in China" are printed immediately below. Presently, in order to see the label, it is necessary to unzip the thermal covering and pull it apart. However, you indicate that Outer Circle has agreed to move the fabric label about two or three inches closer to the top of the thermal covering. In this way the label will be visible without having to pull apart the thermal covering.

The second product is commercially known as a "soft jug". The imported component also is a soft-sided vinyl thermal covering with a zipper closure. This closure unzips the top flap of the thermal covering and allows for the insertion and removal of a semi-rigid plastic container. The container which fits inside the thermal covering is produced in the United States, and is placed inside the thermal covering after importation. The combined container and thermal covering are also sold together as one product.

A textile label is sewn into the inside top flap of the thermal covering (at its perimeter) and prominently displays the text "Outer Circle Products, Ltd., Chicago, Illinois, Made in China." The label can be seen by unzipping and lifting the flap on top of the thermal covering. The soft jug is available in one quart, 1/2 gallon, gallon, 2 gallon and 3 gallon sizes. The sample provided is the half gallon size and is supposed to be representative of the soft jug in other sizes.

ISSUE:

Whether the country of origin marking on the labels sewn into the inside of the thermal coverings of the subject merchandise satisfies the requirements of the country of origin marking law.

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. The evident purpose 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 at 302 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. As provided in section 134.41, Customs Regulations (19 CFR 134.41), country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

In Headquarters Ruling Letter (HRL) 723116, dated September 15, 1983, Customs ruled that the side seam of a handbag was a sufficiently conspicuous place to attach a fabric label bearing the country of origin marking. Customs reasoned that a potential purchaser would inspect the interior of the bag before deciding to buy it and that the label would then be easily seen. Similarly, in HRL 732234, dated March 31, 1989, five pieces of luggage had fabric tags sewn into one of their inside seams which bore the name of the importer, the importer's domestic address and the words "Made in Taiwan". We indicated that it was our opinion that a potential purchaser would unzip the luggage and inspect the interior before making a purchase and such inspection would immediately reveal the fabric label sewn into the inner seam with the country of origin printed on it. Customs also held in HRL 732691, dated May 8, 1990, that a fabric label sewn into the side seam of the inside of a tote bag and handbag was an acceptable location for a country of origin marking as long as the label could be easily found by the ultimate purchaser. (See also HRL 732810, dated January 26, 1990, allowing a sewn in label marked on two sides with the country of origin as long as the label was not sewn into the side seam too deeply inside the bag).

In this particular case, after reviewing the two samples submitted, we believe that a potential purchaser is likely to unzip the thermal covering prior to purchase and observe the country of origin marking on the fabric label which is sewn into an inside seam. First, we recognize that unzipping the cover is necessary to obtain a basic understanding of the product and how it functions. For example, a purchaser would want to unzip the covering to see if the plastic bottle can be removed for cleaning. In addition, similar to the luggage and bags in the rulings previously cited, we believe that a potential purchaser is likely to unzip the thermal covering in order to examine the interior and to inspect the type and quality of the insulation and the type of plastic bottles or containers that are used before making a purchasing decision. In the case of the soft jug sample, the label with the country of origin marking is seen almost immediately as the thermal covering is unzipped and the flap is lifted. With respect to the bottle carrier, we believe that moving of the fabric label closer to the top of the thermal covering will make the country of origin marking easy to find from a casual inspection of the article because the label will be visible without having to pull part the thermal covering. In addition, the marking itself is in clear black letters against a white background, and it is large enough that it can be easily read. Therefore, we find that the proposed marking, satisfies the requirement for conspicuous marking set forth in 19 CFR 134.41.

Finally, because the non-origin place reference, "Chicago, Illinois" is printed on the sewn-in label, the special requirements of section 134.46, Customs Regulations (19 CFR 134.46) are triggered. This provision is 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.) 97-72, 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.

In this instance, the country of marking, "Made in China", is in the same size lettering, as the reference to "Chicago, Illinois". The country of origin marking is also on the same side of the label immediately below the reference to "Chicago, Illinois", and it is preceded by the words "Made in". Therefore, the requirements of 19 CFR 134.46 are satisfied.

HOLDING:

Based upon the information submitted, the country of origin marking for the thermal bottle carrier and the soft jug which is on a label sewn-into an interior seam in the thermal covering of these products satisfies the requirements of 19 CFR Part 134 and 19 U.S.C. 1304.

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.

Sincerely,

John Durant, Director
Commercial Rulings Division

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