HQ 563271 - Country of origin marking requirements applicable to imported product literature; Article 509; NAFTA; Use and Care manual; other printed material - 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 563271

Previous Ruling Next Ruling
HQ 563271

August 4, 2005

MAR-05 RR:CR:SM 563271 KKV

CATEGORY: MARKING

Lawrence M. Friedman, Esq.
Barnes, Richardson & Colburn
303 East Wacker Drive
Suite 1100
Chicago, IL 60601

RE: Country of origin marking requirements applicable to imported product literature; Article 509; NAFTA; Use and Care manual; other printed material

Dear Mr. Friedman:

This is in response to your letter dated April 29, 2005, on behalf of Electrolux Home Products, Inc. (“Electrolux”), that requests a binding ruling regarding the country of origin marking requirements applicable to imported product literature. Samples of the literature were provided for our examination.

FACTS:

The merchandise at issue consists of various articles of product information that will be included with complete refrigerator-freezers to be imported from Mexico. The articles can be categorized in the following manner:

Use and Care manual – for a complete side-by-side refrigerator-freezer with safety instructions, installation instructions, ice-and-water dispenser information, and energy savings tips, in both English and Spanish. The back page, which is printed with customer contact information includes both a U.S. and Canadian address, will also be printed with the phrase, “Refrigerator Made in Mexico” to avoid confusion (Item 1); Information and installation sheets – regarding the replacement of ice and water filter cartridges, refrigerator installation, ice-maker service data, and the use of the ice and water filter system (Items 9, 11-13, 18 and 20);

Promotional material – a return mailer that advertises a trial subscription to a magazine of culinary interest (Item 3);

Warning adhesive stickers and other adhesive stickers – including two warning stickers about the danger of electrical shock if the electrical cord is not removed from the wall receptacle before servicing the appliance (Items 2, 4-6, 8, 10, 14-17); and

Warranty card - for extending the one-year factory warranty to three years and a product registration card [for Canadian residents only] for purposes of warranty verification, owner and model registration (Items 7 and 19).

Under the first fact scenario, the literature will be printed in the United States. In the second scenario, the literature will be printed in Mexico. You inquire whether, in either fact scenario, the items of printed material will be required to be individually marked with their country of origin. For purposes of this ruling, we are asked to assume that the refrigerators are an originating good for purposes of the North American Free Trade Agreement (NAFTA) and have been determined to be a product of Mexico for marking purposes under the NAFTA Marking Rules set forth at 19 CFR Part 102.

ISSUE:

What are the country of origin marking requirements applicable to the articles of printed material described above?

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 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 first scenario you propose, in which all items are printed in the United States, we note that 19 U.S.C. 1304 is applicable solely to articles of foreign origin. Materials printed in the U.S. and exported to Mexico for inclusion in the packaging materials for a Mexican-made refrigerator undergo no subsequent processing that would impact the origin of the materials. Accordingly, upon their return to the U.S. the printed materials would not be required to be marked with their country of origin. See 19 CFR 134.32(m). While Customs has no objection to the phrase “Printed in the USA” we recommend that you contact the Federal Trade Commission, Division of Enforcement, located at 6th & Pennsylvania Avenue, N.W. 20500, for advice regarding claims of domestic origin.

In the second scenario you propose, all items are printed in Mexico. With regard to a good of a NAFTA country, 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. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. However, if a NAFTA article is imported and distributed free of charge, the recipient is not the ultimate purchaser. See 19 CFR 134.1(d)(4).

In Headquarters Ruling Letter (HRL) 558680, dated July 10, 1995, Customs held that advertisement inserts were not sold separately, but were sold as part of a newspaper in which they were inserted. At the time of purchase of the newspaper, the buyer of the newspaper did not know what, if any, advertisements or inserts may appear in the newspaper. The purchaser was buying the newspaper for the articles and the sections comprising the content of the newspaper. Therefore, Customs determined that the advertising inserts may be treated as gifts or giveaways. Customs determined that the ultimate purchaser of the inserts was the person(s) in the U.S. who purchased the bulk advertising insert and distributed them free of charge to the newspaper, and held the inserts would be excepted from individual marking where the outermost container that reached the ultimate purchaser was marked with the country of origin.

In contrast, the Use and Care Manual (Item 1) is an article that the purchaser would necessarily expect to find included with the purchase of a refrigerator. In purchasing the refrigerator, the retail purchaser is also purchasing the manual detailing its operation. The manual at issue is a substantial pamphlet which contains instructions for the installation and operation of the refrigerator, detailed descriptions of all product features, instructions on the care and cleaning of the refrigerator as well as troubleshooting and warranty information. The information contained within the manual is so integral to the ownership of the refrigerator that consumers are advised by the manufacturer, on the front cover in boldface type, to read and save the booklet as a reference for future use. Moreover, the importance of the use & care manual by the manufacturer and the expectation of the consumer upon receiving one with the purchase of the refrigerator is underscored by the fact that electronic copies are available for downloading by consumers at the manufacturer’s website. Therefore, we find that the ultimate purchaser of the use and care manual is the retail purchaser.

With regard to the remaining articles of printed material, we find that HRL 558680, supra, is applicable. With the exception of the Use and Care Manual, which the buyer expects to find, the purchaser does not know what, if any, printed material will be included with the appliance. The buyer is purchasing the appliance and manual, without regard to the other printed materials, which are distributed free of charge by the manufacturer of the refrigerator. Therefore, we find that the ultimate purchaser of the remaining articles of product literature at issue is the person(s) who purchases the bulk printed material and distributes it for free along with the refrigerators.

An article is excepted from marking under 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d) if the marking of the container of such an article will reasonably indicate the country of origin of such article. Annex 311(5)(b)(v) of the NAFTA provides that a NAFTA article is exempt from country of origin marking if it is imported in a container that is marked in a manner that will reasonably indicate the good’s origin to the ultimate purchaser. Accordingly, where the outermost refrigerator carton that reaches the ultimate purchaser is marked with the country of origin of the refrigerator and manual contained within (i.e., Mexico), the Use and Care manual (Item 1) may be excepted from marking pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d). Likewise, the remaining articles of printed material (Items 2-19) may also be excepted from marking where the outermost container that reaches the person(s) who purchases the bulk printed material for free distribution along with the refrigerator is marked with the country of origin of its contents, pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d).

HOLDING:

Materials printed in the U.S. and exported to Mexico for inclusion in the packaging materials for a Mexican-made refrigerator undergo no subsequent processing that would impact the origin of the materials. Accordingly, upon their return to the U.S. the printed materials would not be required to be marked with their country of origin, pursuant to 19 CFR 134.32(m).

Where the Use and Care manual for a refrigerator is a substantial, detailed publication detailing the care and operation of a refrigerator, and which is intended by the manufacturer to be retained indefinitely by the buyer of the refrigerator, the ultimate purchaser such manual is the purchaser of the refrigerator. The ultimate purchaser of printed materials, which are a good of a NAFTA country and which are distributed for free along with an imported refrigerator, is the bulk purchaser of the printed materials.

Where the outermost refrigerator carton that reaches the ultimate purchaser is marked with the country of origin of the refrigerator and manual contained within, (i.e., Mexico) the Use and Care manual (Item 1) may be excepted from marking pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d). Likewise, the remaining articles of printed material (Items 2-19) may also be excepted from marking where the outermost container that reaches the person(s) who purchases the bulk printed material for free distribution along with the refrigerator is marked with the country of origin of its contents, pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d). 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.

Sincerely,

Monika R. Brenner
Chief

Previous Ruling Next Ruling