HQ 561041 - Country of origin marking requirements for dental ( tooth) paste; substantial transformation; packaging; 19 CFR 134.1(d) - United States International Trade Commision Rulings

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 > 1998 HQ Rulings > HQ 561023 - HQ 957606 > HQ 561041

Previous Ruling Next Ruling
HQ 561041

October 28, 1998

MAR-2-05 RR:CR:SM 561041 RSD

CATEGORY: MARKING

P. Vanwonterghem
Cavex Holland BV
Harmenjansweg 19-21
P.O. Box 852
2003 RW Haarlem (Holland)

RE: Country of origin marking requirements for dental ( tooth) paste; substantial transformation; packaging; 19 CFR 134.1(d)

Dear P. Vanwonterghem:

This is in response to your letter transmitted to our office by fax on June 17, 1998, concerning the country of origin marking requirements for imported dental paste.

FACTS:

The dental paste is manufactured and inserted into a delivery system (syringe or capsule) in Germany. These syringes and capsules are transported in bulk to Holland, where they are placed into their final packaging along with the instructions for use. Also in Holland, the product is given a new product identification number, its final name, and a CE mark. The batch number and expiration date are also added in Holland. However, you indicate that the basic paste on the inside is never changed after it leaves Germany.

ISSUE:

What are the country of origin marking requirements for the imported dental paste?

LAW AND ANALYSIS:

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 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. 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 good 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; C.A.D. 104 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), 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 the meaning of the marking laws and regulations. Accordingly, the country of origin of an article is the country in which it was wholly manufactured or, if processed in several countries, the country in which the article last underwent a substantial transformation. Simply stated, a substantial transformation occurs "when an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing." See Texas Instruments, Inc. v. United States, 69 CCPA 152, 681 F.2d 778 (1982) (cited with approval in Torrington Co. v. United States, 764 F. 2d 1563, 1568 (1985)).

In this case, you indicate that the dental paste will be manufactured in Germany and will be sent to Holland for further packaging, insertion of product information, and other minor labeling operations which are performed on the paste's delivery system. However, you specifically state that the basic paste itself is never changed after it leaves Germany. In prior rulings, Customs has consistently held that the packaging of a product will not substantially transform the product. See Headquarters Ruling Letter (HRL) 560155 dated April 10, 1997 and HRL 734706 dated January 15, 1993. Because the paste is not changed after it leaves Germany, the country of origin of the dental paste would be Germany. Because the paste itself cannot be marked with its country of origin, the container in which it reaches the ultimate purchaser in the U.S. must be conspicuously, legibly, and permanently marked to indicate that the country of origin of the paste is Germany. See 19 CFR 134.22(a).

HOLDING:

The country of origin of the dental paste is Germany. In accordance with 19 U.S.C. 1304, the container in which the dental paste is sold to the ultimate purchaser in the U.S. must be marked to indicate that the country of origin of the paste is Germany.

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

Previous Ruling Next Ruling