HQ 562070 - Country of origin marking of imported garments; 19 CFR 134.47; 19 CFR 134.46 - United States International Trade Commision Rulings

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HQ 562070

June 20, 2001

MAR-2 RR:CR:SM 562070 KSG

CATEGORY: MARKING

Barbara Klausman
James J. Boyle & Co.
7505 N.E. Ambassador Place, #B
Portland, Oregon 97220

RE: Country of origin marking of imported garments; 19 CFR 134.47; 19 CFR 134.46

Dear Ms. Klausman:

This is in response to your letters of March 6, 2001, and May 16, 2001, on behalf of Pendleton Woolen Mills, requesting a binding ruling on the country of origin marking of imported garments. You submitted two sample hangtags for our examination.

FACTS:

Pendleton Woolen Mills imports garments that are made in foreign countries. The logo of the company for the women's wear division is the phrase "Pendleton Originals Born In Oregon." The logo appears prominently on the front of the hangtag with a mountain in the background. The logo is a registered trademark.

The back of the hangtag has the following statement:

It's like nowhere else on Earth, this region of soaring mountains, vast timberland and graceful rivers called the Pacific Northwest. Small wonder that when a young weaver named Thomas Kay made his way here in 1863, he made Oregon his home. It is here that Pendleton Originals gets its inspiration. They celebrate the individual in each of us. They delight in easiness, as all comfort clothes should. They embody values and traditions rarely found today, including how Kay's Great, Great, Great, Great Grandchildren lovingly designed the garment you now hold in your hands. Here, nature continues to inspire and remind us, Quality always looks good.

The women's wear will be imported through the ports of Portland, Oregon; Laredo, Texas; and Omaha, Nebraska. The blouses and other upper body garments are marked to indicate the country of origin on a sewn-in fabric label in the middle of the back of the neck. The trousers and skirts will be marked to indicate the country of origin on a sewn-in fabric label in the center of the waistband. On the fabric labels, the country of origin will be preceded by the words "Made In." The country of origin is not printed on the hangtags.

You also submitted a hangtag that will be used in the men's apparel line. This is a folded hangtag. The outside of the folded hangtag shows the word "Pendleton." The inside of the hangtag has the following statement:

THE PENDLETON HERITAGE

Pendleton dates back to the mid 1800's when a young weaver from the Yorkshire district of England journeyed to the untamed Pacific Northwest. There, he helped establish one of Oregon's first woolen mills, setting in motion the course of events that would lead to the founding of the Pendleton Woolen Mills. The company prospered on that pioneering spirit and an unflinching commitment to quality and value. For five generations, Pendleton has earned the distinction as an American original. Today, the tradition lives on with distinctive sportswear in a wide range of exceptional fabrics, colors and designs. Pendleton Woolen Mills

There is no country of origin on the hangtag. The imported men's garments are marked the same as the women's apparel, as described above.

ISSUE:

Whether the proposed marking on the garments satisfies the country of origin marking requirements set forth in 19 U.S.C. 1304.

LAW AND ANALYSIS:

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 134.47 provides as follows:

When as part of a trademark or trade name or as part of a souvenir marking, the name of a location in the United States or "United States" or "America" appear, the article shall be legibly, conspicuously, and permanently marked to indicate the name of the country of origin of the article preceded by "Made in," "Product of," or other similar words, in close proximity or in some other conspicuous location.

The purpose of 19 CFR 134.47 is to prevent the ultimate purchaser from being misled or deceived when the name of a country or place other than the country of origin appears on an imported article or its container. See HRL 559938, dated February 27, 1997.

In this case, the word "Pendleton", and the phrases "Pendleton Originals Born in Oregon," and "It is here that Pendleton Originals gets its inspiration" on the women's apparel hangtag, and "Pendleton has earned the distinction as an American Original" on the men's apparel hangtag connote origin and could mislead or deceive an ultimate purchaser as to the origin of the imported garments.

"Pendleton," "Pendleton Originals," and "Pendleton Originals Born in Oregon" are registered trademarks. Therefore, any references to "Pendleton," "Pendleton Originals," and "Pendleton Originals Born in Oregon" on the men's and women's apparel hangtags trigger the requirements of 19 CFR 134.47.

You cited Headquarters Ruling Letter ("HRL") 561060, dated November 3, 1998, and a line of rulings in support of your position that the country of origin labels on the garments satisfy the requirements of 19 CFR 134.47. In HRL 561060, Customs held that if 19 CFR 134.47 is triggered, marking the country of origin of garments on the sewn-in labels is sufficient to satisfy the requirements of 19 U.S.C. 1304 and 19 CFR 134.47. Based on HRL 561060 and the cases cited therein (HRL 735019, dated June 28, 1993; HRL 558741, dated January 4, 1995; and HRL 559712, dated July 11, 1996), we concur with you that proper marking of the garments, either in the neckline or waistband, satisfies the requirements of 19 CFR 134.47.

Section 134.46, Customs Regulations (19 CFR 134.46), as revised by T.D. 97-72, dated August 20, 1997, provides:

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 of 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.

Section 134.46 provides that its special marking requirements are triggered only when the non-origin reference may mislead or deceive the ultimate purchaser as to the actual country of origin of the article. Customs has ruled that in order to satisfy the “close proximity” requirement, the country of origin marking must appear on the same sides(s) or surface(s) in which the name of the locality other than the country of origin appears. See Headquarters Ruling Letter ("HRL") 708994, dated April 24, 1978.

The phrase "American Original" does not appear to be a registered trademark owned by Pendleton Woolen Mills, and may mislead or deceive an ultimate purchaser as to the origin of the imported garment. Therefore, the special marking requirements of 19 CFR 134.46 are applicable to the hangtags attached to the men's garments. Accordingly, we find that the country of origin of the garments must appear on the inside of the hangtags attached to the men's garments in close proximity to where the phrase "American Original" appears.

HOLDING:

The hangtags on the men's and women's apparel described above trigger the requirements of 19 CFR 134.47. The marking of the country of origin on the imported garments, either in the neckline or in the waistband, is considered a conspicuous location for the purposes of 19 CFR 134.47.

The hangtag on the men's apparel described above triggers the requirements of 19 CFR 134.46. The country of origin of the imported garments must appear on the inside of the hangtags where the phrase "American Original" appears.

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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