HQ 563201 - Country of origin marking requirements applicable to imported crabmeat and eligibility for NAFTA duty preference; Article 401; wholly obtained or produced; tariff shift - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 2005 HQ Rulings > HQ 563136 - HQ 563294 > HQ 563201

Previous Ruling Next Ruling
HQ 563201

April 27, 2005

MAR-05 RR:CR:SM 563201 KKV

CATEGORY: MARKING

Mr. Peter W. Klestadt
Mr. Hal I. Loring
Grunfeld, Desiderio, Lebowitz
Silverman & Klestadt, LLP
399 Park Avenue, 25th Floor
New York, NY 10022-4877

RE: Country of origin marking requirements applicable to imported crabmeat and eligibility for NAFTA duty preference; Article 401; wholly obtained or produced; tariff shift

Dear Mr. Klestadt and Mr. Loring:

This is in response to your letter dated February 9, 2005, on behalf of your client, which requests a binding ruling with regard to the country of origin marking requirements applicable to U.S.-origin crabs that are exported to Mexico for further processing, and returned to the U.S.

FACTS:

Your letter incorporates by reference the facts presented in Headquarters Ruling Letter (HRL) 563143, previously issued to you on February 3, 2005. In that case, live crabs caught in U.S. territorial waters by U.S.-flag vessels, are weighed at the docks, washed, graded, chilled and then steam cooked under pressure (12 psi) for 12 to 15 minutes, then cooled for 8-10 hours. The crabs are loaded onto refrigerated trucks and transported to Mexico, where the meat is picked from the cooked crabs and placed into 8-ounce or 16-ounce airtight or non-airtight containers.

The airtight containers are subjected to heat treatment (pasteurization) by heating in a water bath for approximately 120 to 140 minutes, until the core of the center of the product reaches a temperature of 32 degrees Fahrenheit, and then packed in ice or refrigerated to maintain the 32-degree temperature. The non-airtight containers are not subjected to heat treatment, but are packed in ice or refrigerated to maintain a 32-degree temperature. The containers are packed in master cartons (6, 12, or 20 to a carton), and shipped to the U.S. by refrigerated truck. In HRL 563143, supra, Customs applied the NAFTA Marking Rules and determined that the origin of the processed crabmeat is Mexico.

You now inquire whether the imported crabmeat may be marked “Produced in Mexico from American (or U.S.) Crabs” or “Made in Mexico from American (or U.S.) Crabs.”

ISSUE:

Whether the proposed marking is acceptable for purposes of 19 U.S.C. 1304 and 19 CFR Part 134.

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 container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. By enacting 19 U.S.C. 1304, Congress intended to ensure that the ultimate purchaser would be able to know by inspecting the marking on the imported goods the country of which the goods are the product. The evident purpose is to mark the goods so that at the time of 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. Friedlaender & Co., 27 C.C.P.A. 297, 302 C.A.D. 104 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. With regard to the proposed marking you submitted, we note that the special marking requirements of 19 CFR 134.46 are applicable. This section requires that, in instances where the name of any city or locality in the U.S., or the name of any foreign country or locality other than the name of the country or locality in which the article was manufactured or produced, appears on an imported article or its container, and those words may mislead or confuse the ultimate purchaser as to the 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.

With regard to the proposed marking, because the label will contain a reference to the origin of the component material (either “American” or “U.S.”), there exists a likelihood of confusion as to the country of origin of the imported articles and the special marking requirements of 19 CFR 134.46 are triggered. The proposed markings “Produced in Mexico from American (or U.S.) Crabs” or “Made in Mexico from American (or U.S.) Crabs” are acceptable for purposes of 19 U.S.C. 1304 and 19 CFR 134.46, provided that the country of origin “Mexico” is printed in letters of at least comparable size to the non-origin geographical reference, and the product is, in fact, made with U.S.-origin crabs.

HOLDING:

Based on the information presented, the proposed markings “Produced in Mexico from American (or U.S.) Crabs” or “Made in Mexico from American (or U.S.) Crabs are acceptable for purposes of 19 U.S.C. 1304 and 19 CFR 134.46, provided that the country of origin is printed in letters of at least comparable size to the non-origin geographical reference, and the product is, in fact, made with U.S.-origin crabs.

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,

Myles B. Harmon

Previous Ruling Next Ruling