HQ 562090 - Country of origin marking for fasteners, nuts, bolts, screws, washers, etc.; disjunctive marking - United States International Trade Commision Rulings

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HQ 562090

May 16, 2001

MAR-2-05 RR:CR:SM 562090 MLR

CATEGORY: MARKING

Ms. Jennifer Anderson
Freightliner, L.L.C.
2701 NW Vaughn Ste. 900
Portland OR 97210

RE: Country of origin marking for fasteners, nuts, bolts, screws, washers, etc.; disjunctive marking

Dear Ms. Anderson:

This is in reference to your letter of November 27, 2000, requesting permission to use appraisement entry procedures, in particular the generic designation of “foreign” to indicate the origin on the entry, for shipments where you do not have sufficient information regarding the country of origin.

FACTS:

You state that Freightliner purchasers fasteners and other small components, such as nuts, bolts, screws, washers, etc., from Flexalloy, a U.S. distributor. Flexalloy sources the parts from both foreign and domestic suppliers. Freightliner exported the components from the U.S. to Mexico but, due to a decline in production, wishes to bring back the excess inventory of the fasteners and small parts to the U.S. Additionally, in an email dated April 17, 2001, you provided the countries of origin of the components as the U.S., Canada, Taiwan, Japan, U.K., India, China, and Thailand; however, you are unable to identify what country of origin corresponds with each component.

ISSUE:

What are the country of origin marking requirements of the imported fasteners?

LAW AND ANALYSIS:

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.

Section 134.33, Customs Regulations (19 CFR 134.33), excepts certain articles from individual country of origin marking in accordance with 19 U.S.C. 1304(a)(3)(J) and only requires that the outermost container in which the article ordinarily reaches the ultimate purchaser be marked with the country of origin. Screws, bolts, nuts and washers are listed on the so-called “J-list” articles entitled to this exception.

Generally, Customs policy is that absent other circumstances, it is not acceptable for purposes of 19 U.S.C. '1304 to mark an article in the disjunctive, e.g., “Product of ____ or ____”. In C.S.D. 8456 (December 12, 1983), Customs allowed industrial fasteners (i.e., screws, nuts, bolts and washers) to be marked “from one or more of the following countries....” to indicate the country of origin of fasteners, where there were many varieties from many countries. Only the major source countries from which a particular repackager acquired his stock were required to be listed on the container label. It was also found that the list should begin with that country from which a distributor obtains the greatest percentage (by weight or by piece) of his stock. Customs also stated that it was not necessary to list all countries from which a particular repackager obtained only relatively small quantities of fasteners. Customs allowed this partial exemption to “eliminate the economic prohibitions of strict compliance but preserve the repackager’s obligation to advise the ultimate purchaser of the foreign origin of the repackaged fasteners.”

Based on the foregoing, in this case, only the outermost container in which the fasteners are packaged must be marked to indicate the countries of origin of the fasteners. Accordingly, it would be appropriate to label the outermost container: “Made in Canada, Taiwan, Japan, United Kingdom, India, China, Thailand, or U.S.A.” As the country of origin requirements will be satisfied for these particular components for purposes of 19 U.S.C. 1304, the use of the generic designation of “foreign” under an appraisement entry will not be necessary.

Additionally, your attention is directed to the certification requirements of 19 CFR 134.25. These certification requirements would be applicable if the fasteners are imported in bulk and repackaged into retail packages. According to 19 CFR 134.25, the importer must certify to the port director on entry that, if the importer does the repacking, the new container will be marked to indicate the country of origin of the article, or if the article is to be sold to a subsequent purchaser or repacker, the importer will notify the purchaser or repacker of such marking requirements.

HOLDING:

Based on the information provided, the outermost container in which the fasteners are packaged must be marked to indicate the countries of origin of the fasteners. Accordingly, it would be appropriate to label the outermost container: “Made in Canada, Taiwan, Japan, United Kingdom, India, China, Thailand, or U.S.A.”

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