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NY L81855




January 28, 2005

CLA-2-85:RR:NC:1:108 L81855

CATEGORY: CLASSIFICATION

TARIFF NO.: 8523.30.0000

Ms. Petia N. Pavlova
Made In Mexico, Inc.
702 Ash Street, Ste. 100
San Diego, CA 92101

RE: The tariff classification and marking of magnetic media cards from Mexico.

Dear Ms. Pavlova:

In your letter dated December 23, 2004 you requested a tariff classification and marking ruling.

The subject merchandise, based on the submitted information, is magnetic media cards measuring approximately 3 ¼ inches by 2 inches. The materials, making up these cards, are noted to consist of PVC sheets with laminas, holograms, foils, magnetic stripes, and inks. These materials are imported into Mexico from various countries (USA, Canada, England and Japan). In Mexico, the PVC sheets are further processed in the following manner: printed on both sides with pertinent information, such as with names, addresses, phone numbers, and postal addresses; laminated on both sides; the die cutting of dozens of cards from each PVC sheet; the application of a signature panel to each card; the application of a magnetic stripe to each card, noting the magnetic stripe will be activated in Mexico; the application of hot-stamped holograms to each card; and then packaged in point of purchase cartons for shipment to the United States. It is noted that the outer master and point of purchase cartons, containing these cards, will be marked with the country of origin: Mexico.

After importation, these cards will be shipped in the point of purchase cartons to the customers, such as banks and department stores, who also have the option of personalizing these cards here in the United States, rather than in Mexico. The customers will then dispense these cards free of charge to their clientele for use as credit cards or ATM-access cards.

You were advised that these magnetic media cards would be properly classified under subheading 4911.99.8000, Harmonized Tariff Schedule of the United States (HTS), which provides for Other printed matter, including printed pictures and photographs: Other: Other: Other. However, since this merchandise is more specifically provided for elsewhere, consideration of classification under subheading 4911.99.8000, HTS, is precluded.

The applicable subheading for these magnetic media cards will be 8523.30.0000 Harmonized Tariff Schedule of the United States (HTS), which provides for Prepared unrecorded media for sound recording or similar recording of other phenomena, other than products of chapter 37: Cards incorporating a magnetic stripe. The rate of duty will be free.

Further, in this regard, 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 to 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 134.45(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. 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.

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. In reference to the subject merchandise, however, the purchasers of the gift, based on Section 134.1 (d) (4), are considered to be the ultimate purchasers.

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 these cards by viewing the container in which it is packaged, the individual cards would be excepted from marking under this provision.

The magnetic media cards which are imported in the containers (point of purchase and outer master cartons) that are marked in the manner described above 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 these cards are imported and sold to the ultimate purchaser in lieu of marking the article itself is an acceptable country of origin marking for the imported cards provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser.

This ruling is being issued under the provisions of Part 177 and Part 181 of the Customs Regulations (19 C.F.R. Part 177 and 19 C.F.R. 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 Michael Contino at 646-733-3014.

Sincerely,

Robert B. Swierupski
Director,

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