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HQ 561967




March 2, 2001

MAR-05 RR:CR:SM 561967 TJM

CATEGORY: MARKING

Alexandra Marin
Business Development Manager
Coloplast Corp.
1955 West Oak Circle
Marietta GA 30062-2249

RE: Marking of mastectomy brassieres; 19 USC § 1304; 19 CFR § 134.43(e); 19 CFR § 102.21.

Dear Ms. Marin:

This is a response to your letter dated November 13, 2000, requesting a ruling on country of origin marking of brassieres assembled in Costa Rica with fabric made in the United States. Our response follows.

FACTS:

Coloplast Corporation (“Coloplast”), a medical products manufacturer designs and cuts fabric components of post-mastectomy and plus size brassieres in its facility in Marietta, Georgia. The cut fabric is shipped to a Free Trade Zone in Costa Rica for assembly. Once the brassieres are assembled, they are returned to Coloplast’s warehouse in Marietta, Georgia, and distributed to the U.S. market.

The current label on the brassieres reads “Assembled in Costa Rica” with other content and use disclosures. Coloplast submitted a sample of the label.

Coloplast requests that U.S. Customs provide a binding ruling on the proposed label for the brassiere to read: “Fabric Made in U.S.A. Assembled in Costa Rica.”

ISSUE:

What is the proper country of origin marking for brassieres assembled in Costa Rica with fabric designed and cut in the United States?

LAW AND ANALYSIS:

General Marking Requirements

As you are aware, 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 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 United States who will receive the article in the form in which it was imported. Congressional intent in enacting 19 U.S.C. § 1304 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).

Country of Origin

Section 334 of the Uruguay Round Agreements Act (“section 334”) provides rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 CFR 102.21), implements section 334. Pursuant to 19 CFR 102.21, the country of origin of a textile or apparel product is determined by sequential application of the general rules set forth in paragraphs (c)(1) through (c)(5).

Paragraph (c)(1) states that “[t]he country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the merchandise involved here is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) is inapplicable.

Paragraph (c)(2) states that “[w]here the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section.”

As held in Headquarters Ruling Letter (“HRL”) 962702, post-mastectomy brassieres are classifiable under Chapter 62 - Articles of Apparel and Clothing Accessories - of the Harmonized Tariff Schedule and specifically under subheading 6212.10.9020 of the Harmonized Tariff Schedule of the United States (HTSUS). In the instant case, the brassieres in question are for women who have undergone mastectomies and for plus sizes. The rule set forth in section 102.21(e) for this subheading provides, in pertinent part:

(1) If the good consists of two or more component parts, a change to an assembled good of heading 6210 through 6212 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

According to section 102.21(b)(6), the term “wholly assembled” means

. . . .that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in an single country, territory, or insular possession. . . .

In the instant case, the U.S. components of the brassieres (which consist of two or more component parts) are designed and cut in the United States and are shipped to Costa Rica in a condition ready for assembly. In Costa Rica, the cut fabrics are wholly assembled. Therefore, based on the facts provided and pursuant to 19 CFR 102.21(c)(2), the country of origin of the brassieres for marking purposes is Costa Rica.

Marking Requirements

As for marking requirements, Section 134.43(e), Customs Regulations (19 CFR § 134.43(e)), states in pertinent part that:

Where an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such article shall be marked, as appropriate, in a manner such as the following: (1) Assembled in (country of final assembly); (2) Assembled in (country of final assembly) from components of (name of country or countries of origin of all components); or (3) Made in, or product of, (country of final assembly).

A notice published in the Federal Register on July 19, 1996 (61 Fed. Reg. 37678, 37679 (1996)) discussing 19 CFR 134.43(e), contains Customs’ determination that for country of origin marking requirements, the use of the terms “Made in” or “Product of” cannot be used with the term “Assembled in” in a single marking. Customs stated that for goods entered after August 5, 1996, the use of the terms “made in” and “assembled in” were both markings of origin and thus cannot be used in a single country of origin marking because it could confuse the ultimate purchasers. The notice included the following:

[A]s a result of the amendment of 19 CFR 134.43(e), the terms “Made in” and “Assembled in” are always words of similar meaning, and it will no longer be acceptable to use “Made in,” “Product of,” or words of similar meaning, along with the words “assembled in” in a single country of origin marking statement on articles of foreign origin imported into the United States. (emphasis added).

Therefore, the proposed label, “Fabric Made in the U.S.A. Assembled in Costa Rica,” is not acceptable. The current label stating "Assembled in Costa Rica” is acceptable for Customs requirements. Additionally, pursuant to 19 CFR § 134.43(e), a label that states "Assembled in Costa Rica from components of the U.S.A.” is acceptable.

Furthermore, as noted by many ruling letters from Customs in the past, the use of the terms “Made in the U.S.A.,” “Product of U.S.A.” or similar phrases and labeling requirements of textile fiber products are governed by laws administered by the Federal Trade Commission (FTC). Regarding such issues, we recommend that you contact the FTC directly at:

Textile Section
Division of Enforcement
Federal Trade Commission
600 Pennsylvania Ave, N.W.
Washington DC 20580

Telephone: 202-326-3553 or 326-2996
URL address: www.ftc.gov

HOLDING:

Based on the information provided and pursuant to 19 CFR 102.21(c)(2) and (e), the country of origin of the brassieres is Costa Rica – the country in which the articles are wholly assembled.

In the instant case, country of origin markings “Assembled in Costa Rica,” “Made in Costa Rica” or “Product of Costa Rica” are acceptable. Alternatively, a marking such as ”Assembled in Costa Rica from components of the U.S.A.” is also acceptable for Customs requirements. However, the proposed marking, “Fabric Made in the U.S. Assembled in Costa Rica,” is not acceptable as it contains two conflicting origin markings.

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

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