NY I88463 - COUNTRY OF ORIGIN MARKING OF AN IMPORTED CONVERTER KIT; ARTICLE 509 - United States International Trade Commision Rulings

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NY I88463

December 11, 2002

MAR-2 RR:NC:1:110 I88463

CATEGORY: MARKING

Ms. Ruth Girmscheid
International Customs Services, Inc.
4292 Kennedy Court South
Colgate, WI 53017

RE: COUNTRY OF ORIGIN MARKING OF AN IMPORTED CONVERTER KIT; ARTICLE 509

Dear Ms Girmscheid:

This is in response to your letter, dated November 6, 2002, requesting a ruling on whether the proposed method of marking the container in which the converter kit, model number AS-CVTPRO100-0, is imported is an acceptable country of origin marking for the imported kit. A sample kit with marked sample container was submitted with your letter for review. The request is on behalf of Johnson Controls, Inc.

The converter kit consists of an interface converter, an AC/DC adapter, four wire harnesses, and a case. The converter is designed to convert signals between Palm handheld devices or personal computers and controllers attached via the zone or the N2 Communication Bus. The device allows communications with certain Johnson Controls products such as air handling units, variable air volume controllers, unitary controllers, etc. Due to the large number of products compatible with the CVTPRO, this converter package comes with four connector cables or harnesses, power adapter (North American version) and includes an easy-to-carry zipper case. The converter also has a battery compartment for two AAA batteries. The AS-CVTPRO100-0 converter kit is imported as a set and appears to meet General Rule of Interpretation 3 (b) with regard to sets.

As per submitted information, the interface converter is assembled in Mexico and is considered of Mexican origin. The AC/DC adapter and case are products of China. One harness is assembled in Mexican and is of Mexican origin, two are produced in the United States, and the fourth in a product of Japan. Except for three of the wire harnesses, the items are individually marked with their country of origin. These products are packaged together in Mexico in a sealed box for shipment to the United States. An adhesive label is placed over one of the closed and sealed box flap. This label is places so that half is on the side of the box and the other half extend to the bottom of the box. It contains the following proposed marking on the side of the box:

Interface converter, Product of Mexico
PACKED WITH
Adaptor c/o CHINA
Harness c/o Mx. & JP.,
Case CHINA

The label also contains the following on the side of the box, “North American Version with Power.” On the bottom of the box the label says, “PRODUCT OF MEXICO.”

There are three issues involved in the proposed marking of the AS-CVTPRO100-0 converter kits. The first concerns marking requirements under the North American Free Trade Agreement (NAFTA). The second concerns marking of the container in lieu of the components. The third involves the acceptability of the proposed marking.

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 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.

Section 134.1(b) of the regulations, defines "country of origin" as
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.

Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.

With regard to the first issue, Section 102.17(c) of the regulations states that a foreign material shall not be considered to have undergone the applicable change in tariff classification set out in Section 102.11(a) and Section 102.20 by reason of a simple packaging operation. Therefore, the kit is not a product of Mexico. Section 102.11(c) provides that for a good which is classified as a set under the HTSUS, the country of origin of such a good is the country or countries of origin of all materials that merit equal consideration for determining the essential character of the good. Since we find that each of the components of the kit (i.e. the interface converter, adapter, harnesses, and case) merits equal consideration for determining the essential character of the kit, the country of origin of the kit is the country of origin of each of these components. Therefore, the adhesive label must list the individual country of origin of these components. However, the country of origin marking rules do not apply to articles of U.S. origin and it is not necessary to indicate the origin of the U.S. components. If you choose to indicate the U.S. origin of certain components, then the marking will need to comply with the requirements of the Federal Trade Commission. We suggest that you direct any questions on this aspect of the issue to the Federal Trade Commission.

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.

With regard to the second issue, 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 kits by viewing the container in which it is packaged, the individual components would be excepted from marking under this provision.

Therefore, the individual components of the AS-CVTPRO100-0 converter kits are excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d). Accordingly, marking the container in which the converter kits are imported and sold to the ultimate purchaser in lieu of marking the components is an acceptable country of origin marking for the imported kits provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser.

With regard to the third issue, there are several problems with the proposed marking. First the marking “North American Version with Power” appears on the same side of the box and in close proximity to the country of origin marking. However, it appears in much larger type. Section 134.46 of the regulations requires that when the name of a country or location other that the country of origin appears, the country of origin marking must be of a comparable size. Second, the country of origin marking itself contains multiple origins for the components in the set. In order to prevent confusion, Section 134.46 of the regulations requires in such circumstances that specific language such as “Made in,” “Product of,” or words of similar meaning be used. The use of the abbreviation “c/o” for country of origin is found to be confusing and not similar in meaning. While this abbreviation is familiar to those involved with import/export, the ultimate purchaser may not be familiar with this meaning and the same abbreviation is used with other meaning, such as “care of.” The following are examples of acceptable forms of marking that should be used for identifying the origin of the various components of this set: “Adapter made in China” or “Adapter product of China.” Third, the marking “PRODUCT OF MEXICO” appears on the bottom of the label. This part of the label extends to the bottom of the box and is not on the same side as the country of origin marking. Since the entire kit is not a “PRODUCT OF MEXICO,” this marking is found to be confusing, unacceptable and must be removed. Fourth, the marking “harness c/o Mx. & JP.” (see also “c/o” above) is also found to be unacceptable and confusing. Since there are two harnesses involved the plural harnesses should be used. The instances in which Customs has permitted the use of abbreviations instead of the entire name of the country of origin have been limited. The abbreviations “Mx.” and “JP.” do not unmistakably identify the country of origin of the harnesses and are not acceptable abbreviations for Mexico and Japan.

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 Eileen S. Kaplan at 646-733-3016.

Sincerely,

Robert B. Swierupski
Director,

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