HQ 563295 - Country of Origin Marking for Lapel Pins - United States International Trade Commision Rulings

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HQ 563295

July 29, 2005

MAR-2-05 RR:CR:SM 563295 DCC

CATEGORY: MARKING

Mr. Steven J. Schommer
Wavechange Logistics
N29 W27476 Peninsula Drive
Pewaukee, WI 53072

RE: Country of Origin Marking for Lapel Pins

Dear Mr. Schoomer:

This is in response to your letter dated June 6, 2005, requesting a ruling regarding the country of origin marking for imported lapel pins.

FACTS:

The subject merchandise is enameled lapel pins that are made in China. The pins will be imported into the United States by various product promotion companies in poly bags. The country of origin will be marked on an adhesive label placed on the outside of the bags. A printing company will receive the bags containing 25 to 100 pins each, remove the pins from the bags, and place them on cardstock containing a printed message. The pin and cardstock item (communication piece) will be mailed to individuals on a customer list at no charge.

Whether individuals who receive the lapel pins on cardstock with a printed message are the ultimate purchasers for country of origin marking purposes.

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. Congressional intent in enacting 19 U.S.C. 1304 was that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. Part 134 of the Customs and Border Protection (“CBP”) Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

Section 134.1(d) of the CBP Regulations defines the “ultimate purchaser” as generally the last person in the United States who receives the article in the form in which it was imported. The Regulations further provide that if the imported article is distributed as a gift, the recipient of the gift is the “ultimate purchaser.” 19 C.F.R. 134.1(d)(4).

You claim that the printing and publishing companies are the ultimate purchasers of the lapel pins and therefore the country of origin marking on the poly bags satisfies the marking requirements under 19 C.F.R. 134.

The Court of International Trade has considered the issue of the ultimate purchaser. In Pabrini, Inc. v. United States, 630 F. Supp. 360 (Ct. Int’l Trade 1986), umbrellas from Taiwan were distributed to patrons of a racetrack who paid the general admission fee. The importer argued that the racetrack was the ultimate purchaser, and the umbrellas were therefore excepted from the 19 C.F.R. 134 marking requirements. The Court found that by purchasing a ticket to the racetrack, patrons paid consideration for admission to the race and an umbrella and, consequently, the patrons were the ultimate purchasers.

In addition, CBP has issued several rulings regarding the ultimate purchaser of promotional articles, including lapel pins. In Headquarters Ruling Letter (“HRL”) 734202, dated November 12, 1991, CBP considered the ultimate purchaser of promotional items given away by companies to their clients. In that case, CBP held that the recipients of promotional pens were the ultimate purchaser. In HRL 734482, dated February 13, 1992, CBP considered whether a membership organization was the ultimate purchaser of lapel pins that were given to members of the organization. The American Motorcyclist Association (“AMA”) imported unmarked enameled lapel pins. The AMA awarded the pins to individuals based on the longevity of their memberships. We determined that the individuals who received lapel pins by virtue of their membership status were the ultimate purchasers of the pins. Finally, in HRL 559977, dated December 18, 1996, we held that employees who received lapel pins for completing a training program were the ultimate purchasers of the pins.

In the instant case, the lapel pins are similar to the promotional products described in HRL 734202 and the lapel pins addressed by HRL 734482. As in those rulings, we find that the individuals who receive the pins are the ultimate purchasers. Therefore, the lapel pins must be individually marked in a permanent, legible, and conspicuous manner so as to indicate the country of origin to the individuals receiving the pins. Die sinking or molding the country of origin on the back of each pin, or placing each communication piece in a poly bag with the country of origin of the pin would be acceptable.

HOLDING:

Based on the information provided, the recipients of the lapel pins are considered the “ultimate purchasers” for country of origin marking purposes under 19 U.S.C. 1304 and 19 C.F.R. 134. Consequently, the lapel pins must be individually marked in a permanent, legible and conspicuous manner to indicate their country of origin to the recipients. Acceptable methods of marking would be die sinking or molding the country of origin on the back of each pin, or placing each communication piece in a poly bag with the country of origin of the pin.

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 CBP officer handling the transaction.

Sincerely,

Monika R. Brenner, Chief
Valuation and Special Programs Branch

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