HQ 561828 - Country of origin marking of textile bags - United States International Trade Commision Rulings

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HQ 561828

October 20, 2000

CLA-2 RR:CR:SM 561828 KSG

CATEGORY: MARKING

Connie J. McCuan-Kirsch
Secretary, Textile Bag Manufacturers
P.O. Box 286
Harrison, Ohio 45030

RE: Country of origin marking of textile bags

Dear Ms. Kirsch:

This is in reference to your letter of July 18, 2000, requesting a binding ruling regarding the country of origin marking requirements for a variety of imported textile bags, including burlap, cotton, and polypropylene flexible intermediate bulk containers of less than 1 Kg. and flexible intermediate bulk containers of greater than 1 Kg. In your letter, you referred to an information letter you received from Customs dated February 23, 2000, on this matter.

FACTS:

Company A imports a skid (a pallet) of textile bags into the U.S. with a country of origin marking on the outside of the bale. Company A sells the skid to Company B in the U.S. who will use the bags to package a variety of products such as sand, fertilizer, seed, animal feed, sugar, flour, chemicals etc.

Your question is whether it is acceptable for Company A to mark only the bale and not the individual bags if it is selling the entire skid of bags to Company B. Further, if 1/2 the skid is sold to Company B and 1/2 the skid is sold to Company C, you ask whether it is acceptable to mark only the outside of each bale rather than the individual bags.

ISSUE:

What are the country of origin marking requirements for the imported textile bags, sold as described above?

LAW AND ANALYSIS:

As you are aware, section 304 of the Tariff Act of 1930 (19 U.S.C. 1304), as amended, 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(d), Customs Regulations (19 CFR 134.1(d)), provides that the ultimate purchaser is generally the last person in the U.S. who will receive the article in the form in which it was imported; however, for a good of a NAFTA country, the ultimate purchaser is the last person in the U.S. who purchases the good in the form in which it was imported.

An exception for individual marking is set forth at 19 CFR 134.32(d) where the marking of the container will reasonably indicate the origin of the article. This exception is normally applied in cases where the imported article is imported in a properly marked container and the ultimate purchaser in the U.S. will receive it in its original marked container.

19 CFR 134.24(b) provides that disposable containers or holders imported for distribution or sale are subject to treatment as imported articles in accordance with the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) and shall be marked to indicate clearly the country of their own origin. However, when the containers are packed and sold in multiple units (dozens, gross etc.), this requirement ordinarily may be met by marking the outermost container which reaches the ultimate purchaser.

As Customs stated in the information letter, in the first scenario you describe where Company B buys the imported textile bags from the importer, Company A, and then fills them with different materials in the U.S., Company B would be considered the ultimate purchaser in the U.S. of the bags. Similarly, if 1/2 of the skid is sold to Company C which then fills the bags with different materials in the U.S., Company C would be considered the ultimate purchaser in the U.S. of the bags. Therefore, pursuant to 19 CFR 134.32(d) and 19 CFR 134.24(b), the textile bags would be excepted from individual marking and the requirement may be met by marking the outermost container in which the textile bags reach Company B (in the case of scenario one) or Company B and C (in the case of scenario two).

In regard to scenario two, removing 1/2 the bags from the imported skid and repackaging them onto another skid would necessitate that the importer comply with the repacking certification procedures of 19 CFR 134.26. Section 134.26 provides in pertinent part that: If an imported article subject to these requirements is intended to be repacked in retail containersafter its release from Customs custody, or if the port director having custody of the article, has reason to believe such article will be repacked after its release, the importer shall certify to the port director that: (1) If the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new container shall be marked to indicate the country of origin of the article in accordance with the requirements of this part; or (2) if the article is intended to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or transferee, in writing, at the time of transfer or sale, that any repacking of the article must conform to these requirements.

HOLDING:

On the basis of the information provided, if the importer of textile bags sells the bags to one or more purchasers in the U.S. on skids that are properly marked with the origin of the bags, under 19 CFR 134.32(d), the individual bags will be excepted from marking. Pursuant to 19 CFR 134.24(b), marking the outermost container (the skids) that reach the ultimate purchaser will satisfy 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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