NY E84935 - COUNTRY OF ORIGIN MARKING OF IMPORTED PRESSURE SENSITIVE TAPE FROM CANADA OR EUROPE. - United States International Trade Commision Rulings

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August 10, 1999

MAR-2 RR:NC:SP:221 E84935

CATEGORY: MARKING

Mr. Alan M. Campbell
Avery Dennison
Fasson Roll North America Division
7500 Auburn Road
Painesville, OH 44077

RE: COUNTRY OF ORIGIN MARKING OF IMPORTED PRESSURE SENSITIVE TAPE FROM CANADA OR EUROPE.

Dear Mr. Campbell:

This is in response to your letter dated July 14, 1999, requesting a ruling on the country of origin marking requirements for imported pressure sensitive tape which is later processed in the United States by a U.S. manufacturer. Samples of the tape were submitted with your letter for review.

The tape consists of a top layer of plastic film that may be printable or not, transparent or opaque, clear or colored, vacuum metallized or surface treated. The film has a pressure sensitive adhesive permanently adhered to the underside of the top layer and a protective silicone coated release liner. The film is imported either as a slit roll or a master roll. Master rolls measure 40 to 80 inches in width and have film lengths of 6,000 to 10,000 feet. At the time of importation, each slit roll or master roll is labeled with an indelible country of origin label.

Pressure sensitive film imported in the form of slit rolls is shipped directly to label printer customers in the United States who use the rolls of product as raw material for the production of printed and unprinted self-adhesive labels. Pressure sensitive film imported in the form of master rolls is shipped to Fasson Roll North America (FRNA) and FRNA subcontractor facilities. There the film is slit into rolls of approximately 10 inches in width and film lengths of 2,500 to 10,000 feet. The slit rolls are then shipped to label printer customers who use the rolls in the production of self-adhesive labels.

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. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See 19 CFR 134.35.

Master rolls which are slit into narrower rolls are not considered to be substantially transformed as a result of that processing. However, rolls that are processed to form labels are considered to be substantially transformed as a result of the U.S. processing. Therefore, the U.S. manufacturer of the labels is the ultimate purchaser of the rolls of pressure sensitive film, whether imported as slit rolls or master rolls. Under 19 CFR 134.35, only the containers that reach the ultimate purchaser are required to be marked with the country of origin. Marking on the containers in which the slit rolls are packaged, or a single marking on each slit roll, is sufficient country of origin marking for the slit rolls of pressure sensitive film.

In the case of the master rolls, the merchandise is not shipped to the ultimate purchaser, the label processor, until after the rolls are slit in the United States and then repackaged. Section 134.34, Customs Regulations (19 CFR 134.34), provides that an exception may be authorized at the discretion of the port director under 19 CFR 134.32(d) for imported articles which are to be repacked after release from Customs custody under the following conditions: (1) The containers in which the articles are repacked will indicate the origin of the articles to an ultimate purchaser in the U.S.; (2) The importer arranges for supervision of the marking of the containers by Customs officers at the importer's expense or secures such verification, as may be necessary, by certification and the submission of a sample or otherwise, of the marking prior to the liquidation of the entry.

In this case, assuming that the port director is satisfied that the rolls slit from the master rolls will be repacked in the manner described above, and that the other conditions set forth in 19 CFR 134.34 are met, the port director may authorize an exception under 19 CFR 134.32(d).

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177).

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 Joan Mazzola at 212-637-7034.

Sincerely,

Robert B. Swierupski
Director,

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