HQ 561773 - Country of origin marking of dog chews; 19 CFR 134.1(b); individual marking exception - United States International Trade Commision Rulings

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HQ 561773

October 27, 2000

MAR-2 RR:CR:SM 561773 KSG

CATEGORY: MARKING

Max C. Marx
Vice President- General Counsel
Hartz Mountain Corporation
400 Plaza Drive
Secaucus, New Jersey 07094

RE: Country of origin marking of dog chews; 19 CFR 134.1(b); individual marking exception

Dear Mr. Marx:

This is in response to your letter of June 6, 2000, requesting a binding ruling on the country of origin marking requirements for packages of bone-shaped rawhide strips (“dog chews”) to be imported from Brazil.

FACTS:

Hartz Mountain Corporation is a U.S. importer and distributor of various pet products. Pet Products Artefator de Couro Ltda., a subsidiary of Hartz operating in Brazil, purchases rawhide strip materials from suppliers in Brazil, Mexico, Columbia, Ecuador, Argentina, Paraguay and Uruguay and ships them to a central location in Brazil.

In Brazil, the rawhide is processed for 10 to 12 hours in various solutions of detergent, bacteriacide and rinse water, wrung to remove excess water and cut and formed into rawhide bones. The rawhide bones are then dried for 3 to 12 days and then packaged for retail sale. The rawhide may be basted with a flavored coating. They are then exported to the U.S. to be sold as dog chews.

The rawhide bones are sold in a number of sizes, ranging from three to 24 inches in length. Each length is marketed to the consumer for a different size dog. You state that in order to facilitate this marketing requirement, the dog chews are sorted and maintained in inventory according to their size and color.

ISSUE:

What is the proper country of origin marking of the dog chews, as described above?

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930 (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 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 of 19 U.S.C. 1304. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), provides that : “country of origin” means 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” for marking purposes. A substantial transformation results when a new and different article emerges from the processing having a distinctive name, character or use. U.S. v. Gibson-Thomsen Co., Inc., 27 CCPA 269 (1940). In Headquarters Ruling Letter (“HRL”) 560161, dated January 27, 1997, Customs concluded that rawhide splits were substantially transformed in China when processed into dog chews. The processing in China included chemical treatment, water removal, cutting, hand shaping, drying and in some cases, flavoring. Pursuant to 19 CFR 134.1(b), the country of origin of the dog chews for marking purposes was determined to be China.

Based on the facts submitted, this case is similar to HRL 560161. Before they are processed in Brazil into dog chews, the rawhide strips possess few of the characteristics of the finished dog chews. The rawhide strips are not properly cleaned, are not the proper size or shape, and, in some cases, lack the appropriate flavor for dog chews. Further the rawhide strips could be used for a number of different purposes while dog chews have only one intended use. Accordingly, we conclude that the rawhide strips are substantially transformed in Brazil into dogs chews; a new article with a new name, character and use. Therefore, the country of origin of the dog chews for marking purposes is Brazil.

In HRL 734290, dated December 24, 1991, Customs considered the issue of whether imported dog chews were excepted from individual country of origin marking. Customs determined that the dog chews were incapable of being individually marked because any technique would be harmful to the animal eating it or make the product unmarketable. Marking the outermost container in which the ultimate purchase will receive the dog chews is required. Therefore, the dog chews in this case are excepted from individual marking; marking the outermost containers in which the ultimate purchaser will receive the dog chews satisfies the requirements of 19 U.S.C. 1304.

HOLDING:

Pursuant to 19 CFR 134.1(b), the country of origin of the dog chews is Brazil. The dog chews are excepted from individual country of origin marking; the outermost containers in which the ultimate purchase receives the dog chews must be marked to indicate the country of origin.

A copy of this ruling letter should be attached to the entry documents filed at the time the good 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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