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NY G82380





October 19, 2000

MAR-2 RR:NC:2:230 G82380

CATEGORY: MARKING

Mr. Ralph Saunders
Deringer Logistics Consulting Group
1 Lincoln Blvd., Suite 225
Rouses Point, NY 12979

RE: COUNTRY OF ORIGIN MARKING OF THIN FIBERBOARD AND PARTICLE BOARD SHEETS; ARTICLE 509

Dear Mr. Saunders:

This is in response to your letters dated September 13, 2000 and June 23, 2000, on behalf of your client Flakeboard Company, requesting a ruling on whether imported thin sheets of wood fiberboard and particle board may be excepted from the individual country of origin marking requirement on the basis of sections 134.32 (a), (b) and (d) of the Customs Regulations. Representative samples were submitted with your letter for review.

The products in question are high density fiberboard (known as Fibrex™) and particle board (known as Mende) manufactured in Canada. The products are imported into the United States in panel sizes ranging from 4’x 6’ to 5’x 12’ and in thickness ranging from 2.2 mm to 7.2 mm. The surfaces may be finished or unfinished. The panels are imported in bundles of 66 to 210 pieces and each bundle has a tag which identifies the product and includes the marking “Made in Canada.”

The panels are sold in some cases direct to U.S. manufacturers who use them to make furniture and kitchen cabinets. The panels are shipped to these manufacturers in bundles with the country of origin tags.

In other cases, the panels are sold to distributors who resell them to other manufacturers and end users. These other manufacturers use the panels to make products such as picture frame backs, gameboards, cabinets and signboards. At the time of importation, however, the identity of these various end users is not known. The panels are shipped to the distributors by the bundle, however, the distributors stock the panels and do not resell them by the bundle.

You state that the Fibrex™ and Mende panels are sold “Good Two Sides” and that the customer in the United States expects both surfaces to be free from any markings or defects. The customer may use either side in their manufacturing process. In some cases, after the end product is manufactured, both sides of the fiberboard will be exposed. You expressed a concern that a consumer of the end product made in the United States (picture frame, game, etc.) would be confused to see any “Made in Canada” markings from the fiberboard that would show up in the end product. We do not believe that this is a significant problem; however, we will address your concern.

You also state that the panels are too thin to be legibly marked with the country of origin on the edges. A previous ruling, NY C80806 of November 14, 1997, concerned a similar issue. The fiberboard in that ruling was too thin to be marked on the edge and was required to be marked on the back of the panel. You state that your client’s product is different from the one in that ruling because both the front and back surfaces need to be clear.

The 8” square samples submitted by you were ink stamped “Made in Canada” on one edge. You stated that the panels are imported marked in this manner. However, although the marking on the samples was found to be legible, we agree that this marking alone is too small to be noticed on the full size panels.

In view of the above, you believe that sections 134.32 (a), (b) and (d) of the Customs Regulations (19 CFR 134.32(a),(b),(d)) are applicable and that the Fibrex™ and Mende panels may be excepted from the requirement of marking each panel with the country of origin.

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.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

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) of the regulations, provides that the ultimate purchaser of a good of a NAFTA country is the last person in the United States who purchases the good in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser.

An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs is satisfied that the article will remain in its container until it reaches the ultimate purchaser and if the ultimate purchaser can tell the country of origin of the article by viewing the container in which it is packaged, the individual article would be excepted from marking under this provision.

When the Fibrex™ and Mende panels are sold and shipped by the bundle direct to U.S. manufacturers of furniture and kitchen cabinets, an exception from individual country of origin marking may be applicable under section 134.32 (d) Customs Regulations. These manufacturers are the ultimate purchasers of the panels and they receive the panels in the marked bundles at the time of importation. The marking on the bundles will satisfy the marking requirement.

However, this exception does not apply when the panels are sold to distributors. The ultimate purchasers of the imported fiberboard and particle board in this case are not known. Furthermore, the panels are not sold by the bundle. Thus, the end users will not know the country of origin of the boards unless each board is individually marked.

Exceptions under sections 134.32 (a) and (b), Customs Regulations (19 CFR 134.32(a),(b)) are also not applicable. Section 134.32 (a) provides that articles which are incapable of being marked may be excepted from the marking requirements of Part 134.

Section 134.32(b) provides that articles that cannot be marked prior to shipment to the United States without injury may be excepted from the marking requirement of Part 134.

The panels are capable of being marked and may be marked prior to shipment without injury. The panels can be marked on the back surface with a phrase like “Fibrex™ Board Made in Canada.” In this case, a consumer of an end product made in the United States would not be confused by any remaining country of origin marking.

The panels can also be marked on the edges as demonstrated by the samples. However, they need to be marked frequently as well as legibly. The panels can be ink stamped “Made in Canada” at regular intervals on all four edges. In this way, the marking would become conspicuous and this would satisy the marking requirement of Part 134 of the Customs Regulations (19CFR Part 134).

We find that the subject boards have to be marked with the country of origin.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).

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 Paul Garretto at 212-637-7009.

Sincerely,

Robert B. Swierupski
Director,

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