NY F86132 - THE COUNTRY OF ORIGIN MARKING OF WATCHES - United States International Trade Commision Rulings

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NY F86132

May 17, 2000

MAR-2 RR:NC:MM:114 F86132

CATEGORY: MARKING

Mr. John B. Pellegrini
Ross & Hardies
Park Avenue Tower
65 East 55th Street
New York, New York 10022-3219

RE: THE COUNTRY OF ORIGIN MARKING OF WATCHES

Dear Mr. Pellegrini:

This is in response to your letters dated May 1, 2000 and April 13, 2000, on behalf of Reebok International, Ltd., requesting a ruling on the marking of a wrist watch for the purposes of 19 U.S.C. 1304 and the special marking requirements of Additional U.S. Note 4 to chapter 91 of the Harmonized Tariff Schedule of the United States. Two samples of the wrist watches and a plastic watch box were submitted with your letter and will be returned to you as requested.

The men’s wrist watches, labeled style numbers 9RMLG and 9RBLG, are battery operated and contain quartz movements with analog displays. The watch cases are made of brushed metal and the bands are leather with a fabric lining. Style 9RMLG and 9RBLG are essentially the same, with the exception that style 9RBLG has a day and date feature.

One of the submitted samples, 9RMLG, is marked with a sticker label on the back of the watch case. You indicate in your letter that the imported watches will be marked in this manner. The sticker label is printed with the words “Made in China”. There is a British flag located at three locations on the watch: on the dial of the watch, on the stainless steel closure of the watch band and on the outside back of the watch case. The outside back of the watch case also has the words “China Mov’t” etched in the metal; you indicate that this marking will be removed.

Although you state that watch will be sold in a paperboard box, the submitted sample is packaged in a molded plastic watch box that is not covered with any other material. The watch box has a British flag printed on it in two places, on the top of the box and on the side panel. You state in your letter that at the time of importation, the watch box will have a sticker stating “Made in China” applied to the side panel of the box.

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 imported into the U.S. shall be marked in a conspicuous place as legibly, 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.

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.

The country of origin of a watch or clock is the country of manufacture of the watch or clock movement. The addition of the hands, dial, case, or watchband add definition to the time piece but do not change the character or use of the watch or clock movement which is the essential part of the watch or clock. In order to satisfy the requirements of 19 U.S.C 1304, a watch must be legibly marked with the name of the country of manufacture of the watch movement in a conspicuous place.

Section 134.43(b), Customs Regulations (19 CFR 134.43(b)), in conjunction with section 11.9, Customs Regulations (19 CFR 11.9), provides that watches must be marked in accordance with the special marking requirements set forth in Chapter 91, Additional U.S. Note 4 of the Harmonized Tariff Schedule of the United States (HTSUSA) (19 U.S.C. 1202). This note requires that any watch movement, or case provided for in the subpart, whether imported separately or attached to any article provided for in the subpart, shall not be permitted to be entered unless conspicuously and indelibly marked by cutting, die-sinking, engraving, stamping (including by means of indelible ink), or mold-marking (either indented or raised), as specified in the provisions of this note. This marking is mandatory. The Customs Service has no authority for granting exceptions to the special marking requirements for watches.

Section (a) of Additional U.S. Note 4 requires that watch movements shall be marked on one or more of the bridges or top plates to show the manufacturer or purchaser; and, in words, the number of jewels, if any serving a mechanical purpose as frictional bearings. Section (c) of Additional U.S. Note 4 requires that watch cases shall be marked on the inside or outside of the back cover to show the name of the country of manufacture, and the name of the manufacturer or purchaser. The country of manufacture in these requirements refers to where the movements and cases are manufactured rather than where the watch was made. The special marking must be accomplished by one of the methods specified in the Additional U.S. Note 4, and using stickers is not an acceptable alternative.

Your letter indicates that the watch will be manufactured in China. The submitted sample of style 9RMLG has a paper sticker on the back of the case stating “Made in China”. This would normally meet the requirement of 19 USC 1304 country of origin marking, however, the presence of the British flags on the watch invoke CRl34.46.

The submitted samples have the British flag represented on various parts of the watch. The flag is stamped into the watch band’s metal snap closure, it appears in the three colors, red, white and blue, on the dial of the watch, and it is stamped onto the outside back of the metal watch case. The flag also appears in two places on the plastic watch box. According to the information provided to this office, the British flag is not part of the Reebok trademark.

CR 134.46 requires that if the name of any city or locality in the U.S., or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced, appears on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letter 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. The purpose of this section is to prevent the possibility of misleading or deceiving the ultimate purchaser as to the actual origin of the imported good. The close proximity requirement has been interpreted to mean the same surface.

We believe that the presence of symbols associated with a country other than the country of origin of the watch would mislead the ultimate purchaser as to the country of origin of the watch. The British flag is more prominently displayed on the watch than the country of origin marking of the watch. In order to satisfy the statutory marking requirements, the watch must be marked “Made in China” in close proximity to the British flag on the front of the watch dial. Also the watch box must be marked “Made in China” in close proximity to the representations of the British flag.

The submitted sample of style 9RBLG, which has the case back removed, shows the marking “Prestige Time Co. Ltd.”, Swiss Parts/Movement China” and “One 1 Jewel” printed in what appears to be indelible ink on the movement. The case back is marked on the outside of the back to show the name of the purchaser, which is Reebok. The case back is not marked with the name of the country of manufacture.

The wrist watch, as presented, does not meet the requirements of Additional U.S. Note 4 (c, i) which requires that the case be marked on the inside or outside of the back to show the name of the country of manufacture. Accordingly, the watch is not legally marked for the purposes of Additional U.S. Note 4 (c, 1) of chapter 91 of the Harmonized Tariff Schedule of the United States. You state in your letter that the origin of the case and the purchaser’s name will be disclosed on the interior of the case at the time of importation. The marking must be accomplished using a method specified in Additional Note 4 to chapter 91, Harmonized Tariff Schedule.

This ruling is being issued under provision 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 Barbara Kiefer at 212-637-7058.

Sincerely,

Robert B. Swierupski
Director,

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