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HQ 563029

August 6, 2004

MAR-2-05 RR:CR:SM 563029 AL

Mr. Robert G. Gaydo
Deringer Logistics Consulting Group
6930 Metroplex Drive
Romulus, Michigan 48174

Dear Mr. Gaydo:

This is in response to your letters dated April 20, 2004 and July 26, 2004, on behalf of your client, Jem Strapping Systems (“Jem”), requesting a ruling on the country of origin marking requirements for waxed steel strapping imported into the United States from Canada. Photographs of the steel strapping were submitted with your request.

FACTS:

Your client, Jem, a Canadian company, sells waxed steel strapping to U.S. companies, specifically to American Strapping. According to the July 26, 2004 letter, the steel strapping is waxed before it is packaged and shipped to the customer. The purpose of waxing the steel strapping is so that the strapping can slide easily through a tool used by the customer to secure the strapping over material in preparation for shipping. You state that labeling or printing the country of origin on the steel strapping would not remain permanent due to the wax.

According to your letters, the steel strapping is coiled into rolls and placed on wooden pallets to be packaged and shipped to the customer. The maximum number of coils on a pallet is 15 rolls. You further state that the steel strapping is packaged based on customer preference. Steel strapping can be packaged in paper, in plastic or in cardboard. The strapping can also be wrapped in paper and then covered in plastic, then in cardboard. Despite how the steel strapping is packaged, the country of origin is marked on a label that is attached to the outermost container.

You request a ruling that will exempt the waxed steel strapping from the country of origin marking requirements by permitting the country of origin marking on the outermost container of the waxed steel strapping.

ISSUE:

Whether marking the outermost container of the waxed steel strapping imported into the United States from Canada is acceptable for country of origin marking requirements.

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. Part 134 of the Customs Regulations implements the country of origin marking requirements of 19 U.S.C. 1304. For NAFTA goods, section 134.1(d), Customs Regulations (19 CFR 134.1(d)), provides that the “ultimate purchaser” is “the last person in the United States who purchases the good 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).

On the other hand, certain exceptions to the marking requirements are allowed. An article may be excepted from the country of origin marking requirements where “the marking of a container of such articles will reasonably indicate the origin of such article.” 19 U.S.C. 1304(a)(3)(D); 19 CFR 134.32(d). In cases where CBP has found that an exception set forth at 19 CFR 134.32(d) applies, CBP has clearly stated that the container may be marked in lieu of the article only if CBP is satisfied that the article will remain in its container until it reaches the ultimate purchaser. See HQ 559922, dated March 25, 1997.

The containers in this case refer to the packaging material, i.e. paper, plastic, or cardboard, depending on the customer’s preference. For purposes of this ruling, we are assuming that the ultimate purchasers are Jem’s customers who use the strapping to secure various materials for shipping. The exhibits provided by Jem show that the country of origin marking label is affixed to the outermost container. As it is stated in 19 CFR 134.22(a), “[w]hen an article is excepted from the marking requirements . . . the outermost container or holder in which the article ordinarily reaches the ultimate purchaser shall be marked to indicate the country of origin of the article whether or not the article is marked to indicate its country of origin.” Based on one of the photographs provided by Jem, we note that since the duct tape does not remain securely fastened on the steel strapping, where it is intended to hold down the end of the coiled steel strapping, it would be difficult to mark the strapping itself.

Therefore, assuming that CBP at the port of entry is satisfied that the wax steel strapping will remain in its packaging until it reaches the ultimate purchaser, we find that it will be sufficient to mark the outermost container with the country of origin of the waxed steel strapping. See 19 CFR 134.32(d). Based on the photographs of the labels presented, the proposed marking on the strapping is conspicuous, legible, and indelible as required by 19 U.S.C. 1304.

HOLDING:

In the instant case, assuming that CBP at the port of entry is satisfied that the wax steel strapping will remain in its properly marked paper, plastic or cardboard coverings until it reaches the ultimate purchaser in the U.S., an exception under 19 U.S.C. 1304(a)(3)(D) may be authorized. The ultimate purchasers are Jem’s customers who receive shipments of waxed steel strapping in paper, plastic or cardboard coverings.

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 and Border Protection officer handling the transaction.

Sincerely,

Myles B. Harmon, Director
Commercial Rulings Division

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