HQ 561921 - Country of origin marking for polymers used in drilling fluids imported from Finland and Sweden; 19 CFR part 134; 19 CFR § 134.45(b); 19 CFR § 134.46. - United States International Trade Commision Rulings

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HQ 561921

May 21, 2001
mar-05 RR:CR:sm 561921 tjm

Category: MARKING

Mr. Christopher B. Goble

Manager
M-I, L.L.C.
PO Box 42842
Houston TX 77242

RE: Country of origin marking for polymers used in drilling fluids imported from Finland and Sweden; 19 CFR part 134; 19 CFR § 134.45(b); 19 CFR § 134.46.

Dear Mr. Goble:

This is in reply to your letter dated October 10, 2000, requesting a ruling on proper country of origin marking for polymers imported from Finland and Sweden. We regret the delay in responding. Please find our response below.

FACTS:

M-I, LLC (“M-I”) imports polyanionic cellulose polymer (marketed as “Polypac® R” or “Polypac® L”) used in drilling fluids for the oil and gas industry. The polymer in solid form is packed in bags that hold 50 pounds. The polymers are imported already filled in the bags. After importation, M-I ships the Polypac® products to its field warehouses where they are subsequently distributed to various end users engaged in drilling for oil and gas. The Polypac® products are delivered on pallets with the individual bags stacked on top of each other to drilling rigs on land and offshore. A photograph of a pallet fully stacked with Polypac® bags was provided.

A sample empty bag of Polypac® R was submitted to this office. The bag is rectangular in shape with a face panel, a back panel, two short side panels, and two long side panels. Printed in large letters on the face panel of the bag is the name of the product, “Polypac® R” with its weight “50 lbs.” Printed below the product name is information on the contents of the bag with health warnings. At the bottom of the face panel is a logo of M-I company and the caption “Houston, Texas U.S.A.” The name of the product, “Polypac®,” also is printed on the short side panels of the bag. On the short side panels and in smaller letters, the country of origin marking “Product of Finland” is printed below the product name. The letters for the country of origin marking on the short side panels of the bag are slightly larger than the letters for “Houston, Texas U.S.A.” on the front panel. The country of origin marking on one of the short side panels is approximately six and a half inches from the “Houston, Texas U.S.A.” caption on the bottom of the front panel.

The name of the product, “Polypac® R” also is printed on the long side panels of the bag. Specifications regarding the durability of the bag are printed on the back panel of the bag. When stacked on the pallet, the face panel of the Polypac® bags is visible only on the top layer of the pallet. The outer surface of the stacked pallet shows either the short or the long side panels.

ISSUE:

What are the country of origin marking requirements applicable to imported bags of polymers described above?

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304) provides that unless excepted, every article of foreign origin imported into the United States 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. 19 C.F.R. 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 United States who will receive the article in the form in which it was imported.

Congressional intent in requiring a country of origin marking was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of origin of which the goods is the product. The evident purpose is to mark the goods so that at the time of the purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” United States v. Friedlander & Co., 27 C.C.P.A. 297 at 302; C.A.D. 104 (1940).

The pertinent fact in the instant case is the reference to the United States and its localities on the face panel of the bag while the country of origin marking is on the short side panels of the bag. Section 134.46, Customs Regulations (19 CFR §134.46), requires that:

In any case in which the words “United States,” or “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or location in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced appear on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin or the article, there shall appear legibly and permanently in close proximity to such words, letters 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. (Emphasis added)

Customs has ruled that in order to satisfy the close proximity requirement, the country of origin marking must appear on the same side(s) or surface(s) in which the name of the locality other than the country of origin appears. See HRL 708994 (April 24, 1978), HRL 083832 (May 31, 1989), HRL 73361 (July 26, 1990). In other words, when viewing the non-origin reference, the country of origin must be apparent in one observation without having to manipulate the article.

In the instant case, because there are references to the United States and to Houston, Texas, on the face panel of the bag, section 134.46 requirements apply. The question is whether the current country of origin marking on one of the short side panels of the bag is in “close proximity” to the reference to Houston, Texas, USA at the bottom of the face panel.

In Headquarters Ruling Letter (“HRL”) 734648, dated July 14, 1992, we held that even though the country of origin marking was not adjacent to the U.S. address on a box for imported appliances, the fact that they were on the same surface was acceptable for meeting the “close proximity” requirement. Furthermore, we reasoned in that case that the ultimate purchaser did not have to strain or turn the box of the product at issue to see both the country of origin marking and the U.S. address at the same time. In HRL 735455, dated May 16, 1994, we held that a bag holding fireproofing materials imported from Canada required country of origin marking on the same panel of the bag on which a U.S. reference appeared even though country of origin markings were provided on other panels of the bag. Specifically, in that case, Sample 1, which had references to the U.S. on the back panel, lacked a country of origin marking on the same panel. Other panels of the bag, which contained references to the U.S. or its localities, had country of origin marking stickers placed close to those non-origin geographical references. Nevertheless, we required that the importer place country of origin marking on the back panel as well.

For purposes of this ruling, we are assuming that the country of origin for the product is Finland or Sweden. In the instant case, the country of origin marking on one of the short side panels is six and a half inches away from the non-origin geographical reference at the bottom of the face panel. Depending upon the viewing angle, it is possible to view both the non-origin reference on the face panel and the country of origin marking on one of the short side panels. However, noting that the bag weighs 50 pounds and that unless the bag is at the right angle for the viewer to see both information, it is our opinion that the country of origin marking and the non-origin geographical references cannot be viewed easily without manipulating the product. Therefore, a country of origin marking is required on the same face panel of the bag as the “Houston, Texas U.S.A.” caption.

HOLDING:

For purposes of this ruling, we are assuming that the products qualify as originating in Finland or in Sweden. With that assumption, the reference to Houston, Texas U.S.A. at the bottom of the face panel triggers the section 134.46 requirements, which prescribe that the country of origin marking shall appear legibly and permanently in close proximity and in comparable size to the non-origin geographical references. Such required marking on the face panel of the bag and adjacent to the “Houston, Texas, U.S.A.” caption may be a sticker that contains the country of origin, assuming that the port is satisfied that such marking is permanent, indelible, legible and comparable in size to the non-origin geographical reference.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents are filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John Durant
Director

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