NY M86362 - THE COUNTRY OF ORIGIN MARKING OF A HANDBOOK COVER - United States International Trade Commision Rulings

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NY M86362

September 15, 2006

MAR-2 RR:NC:N3:341 M86362

CATEGORY: MARKING

Michael G. Hodes
Hodes Keating & Pilon
134 North LaSalle Street, Suite 1300
Chicago, IL 60602

RE: THE COUNTRY OF ORIGIN MARKING OF A HANDBOOK COVER

Dear Mr. Hodes:

This is in response to your letter dated Sept. 6, 2006, on behalf of your client, S.Y. Express, Inc., requesting a ruling on whether or not a handbook cover for a vehicle owner’s manual must be marked with the country of origin. You are not requesting a classification ruling. The samples will be returned as requested.

You submitted a sample of a cover for a car owner’s manual. The cover is made of heavy-duty woven fabric with a hook-and-loop closure. You have not stated the fiber content, but it appears to be a woven cotton duck fabric. S.Y. Express imports the covers individually packaged in a plastic bag that is marked “Made in China.” The covers are then sold to DaimlerChrysler, but are delivered to a “fulfillment center” where they are received in the packages marked “Made in China.” The covers are then repackaged together with the vehicle owner’s manual and other documents; all of these items are of domestic origin. All of this is then shrink-wrapped and sent to an assembly plant where it is placed in the glove compartment of a vehicle. Upon completion of the assembly of the vehicle, it is sold through a dealership to the general public. The package is not handed to the purchaser of the vehicle until after the sale of the vehicle has been consummated.

According to our examination of the repackaged manual, the original plastic wrapper that was on the imported cover and that was labeled “Made in China” is removed before the repackaging.

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.

As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.

The proposed marking of the imported handbook cover, as imported and described above, is conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. However, in the repackaging at the fulfillment center, this marking is removed and not replaced. Thus, the purchaser of the vehicle is not able to determine its country of origin.

You state your belief that for purposes of country of origin marking, DaimlerChrysler is the ultimate purchaser of the cover. You also state that the value of the folder is so inconsequential when compared to the cost of the vehicle that it is “more akin to something that is given away.” We note that 19 CFR 134.1(d)(2) indicates that if the imported article is distributed as a gift the recipient is the ultimate purchaser. Consequently, although the item may be essentially given away, under the Customs regulations the recipient of the cover, not the importer, would be considered the ultimate purchaser.

You state that the cover is essentially “invisible” to the purchaser until after the purchase, that the cover’s “physical existence is merged into the vehicle as a whole.” We note that the Owner’s Manual is an article that the purchaser would necessarily expect to find included with the purchase of a vehicle. In purchasing the vehicle, the retail purchaser is also purchasing the manual detailing its operation. The manual at issue, together with the other booklets and pamphlets in the package, is a substantial booklet that contains instructions for the operation and maintenance of the vehicle, detailed descriptions of all product features, instructions on the care and cleaning of the vehicle as well as troubleshooting and warranty information. The information contained within the manual is so integral to the ownership of the vehicle that consumers are advised by the manufacturer to read and save the booklet as a reference for future use. In fact, in bold-faced type, the consumer is urged to read the manual and that it should then “be stored in the vehicle for convenient reference and remain with the vehicle when sold, so the new owner will be aware of all safety warnings.” We assume all materials are meant to be stored and passed along in the cover at issue. Therefore, we find that the ultimate purchaser of the cover for the manual is the retail purchaser of the vehicle.

Therefore, the handbook cover must be marked permanently, legibly and conspicuously to indicate its country of origin to the retail purchaser of the vehicle.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177).

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 341 at 646-733-3041.

Sincerely,

Robert B. Swierupski
Director,

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