HQ W968352 - Country of Origin Marking on Packages and Containers for Monster Cable Electronic Products; 19 CFR 134.24; 19 CFR 134.46 - United States International Trade Commision Rulings

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HQ W968352

October 23, 2006

MAR-02 RR:CTF:TCM W968352 RSD

CATEGORY: MARKING

Carl D. Cammarata, Esq.
Law Offices of George R. Tuttle
Three Embarcadero Center, Suite 1160
San Francisco, California 94111

RE: Country of Origin Marking on Packages and Containers for Monster Cable Electronic Products; 19 CFR 134.24; 19 CFR 134.46

Dear Mr. Cammarata:

This is in response to your letter received by facsimile transmittal on July 13, 2006, on behalf of Monster Cable, Inc., requesting a ruling regarding the country of origin marking requirements for containers and packages of imported electronic products and parts. A copy of two specification sheets showing the information contained on the packages was attached to your letter.

FACTS:

Monster Cable is a corporation that designs, imports and markets electronic products, components and parts. You indicate that Monster Cable’s products will be sold in retailing packaging that contains a card that shows their country of origin. This card will be visible on the package. The country of origin marking will be located at the bottom one-fourth of the card just above the UPC Bar Code and Monster Inventory Number. In addition, the country of origin statement will be located in a separate paragraph just above Monster’s U.S. and European Union address.

According to the submitted specification sheet, Monster Cable has designed three different types of proposed country of origin markings. One of these three versions will be used for each of the three different types of products that Monster Cable will import. In other words, depending on the product, the appropriate one of three statements regarding the country of origin of the product will be included on the card used on Monster Cable’s retail packages.

The country of origin statements will include either the phrase “Made in (name of country will be inserted)” or “Manufactured in (name of country will be inserted)”. Monster Cable will include both the appropriate U.S. address and the address of its office in the European Union for customer relations and services. The lettering of the country of origin marking statement will be in the same font/size as Monster Cable’s USA and the European Union addresses. The country of origin marking statements will be in separate paragraphs and will not be covered or obscured. As shown on the specification sheet, the country of origin statement will be adjacent to the references to the United States and the European Union. You indicate that the retail packages are not designed for or capable of reuse.

Monster Cable’s products will be imported in full crates and boxes and marked with country of origin of the products that are imported in them. You state that the lettering, location and the wording of the country of origin marking statement on the shipping containers will be in compliance with the country of origin marking law and the applicable regulations.

ISSUE:

Whether the proposed country of origin marking on the retail packages, described above, satisfies the country marking law and the applicable regulations.

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. Part 134, Customs and Border Protection Regulations (CBP) (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

Articles for which the marking of the containers will reasonably indicate their origin are excepted from individual marking under 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d). This exception applies only if the article in question is imported in a properly marked container and CBP is satisfied that the article will reach the ultimate purchaser in this original marked unopened container. Section 134.1(d), CBP Regulations (19 CFR 134.1(d)) provides that "the 'ultimate purchaser' is generally the last person in the United States who will receive the article in the form in which it was imported." The last sentence of 19 U.S.C. 1304(b) provides that "usual containers in use as such at the time of importation shall in no case be required to be marked to show the country of their own origin."

19 CFR 134.22 provides that:

(d) Usual containers--(1) “Usual container'' defined. For purposes of this subpart, a usual container means the container in which a good will ordinarily reach its ultimate purchaser. Containers which are not included in the price of the goods with which they are sold, or which impart the essential character to the whole, or which have significant uses, or lasting value independent of the contents, will generally not be regarded as usual containers. However, the fact that a container is sturdy and capable of repeated use with its contents does not preclude it from being considered a usual container so long as it is the type of container in which its contents are ordinarily sold. A usual container may be any type of container, including one which is specially shaped or fitted to contain a specific good or set of goods such as a camera case or an eyeglass case, or packing, storage and transportation materials.

The marking requirements for disposable containers are provided in 19 CFR 134.24. Disposable containers include "cans, bottles, paper or polyethylene bags, paperboard boxes, and similar containers or holders which are ordinarily discarded after the contents have been consumed." See 19 CFR 134.24 (a).

Based on your description, we are satisfied that the ultimate purchaser of Monster Cable’s electronic products will dispose of the retail packaging once the electronic products are removed. Therefore, we are satisfied that the retail packaging can be considered as usual and disposable containers. Accordingly, the retail packages do not have to be marked with their own country of origin. If the containers reasonably indicate the country of origin of their contents, then the electronic products in the containers are excepted from individual marking under 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d).

With regard to the proposed country of origin marking on the retail packages for Monster Cable’s electronic products, as shown on the submitted specification sheet, we note that the special marking requirements of 19 CFR 134.46 need to be considered. This section requires that, in instances where the name of any city or locality in the United States, 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.

Section 134.46 provides that its special marking requirements are triggered only when the non-origin reference may mislead or deceive the ultimate purchaser as to the actual country of origin of the article. CBP has ruled that in order to satisfy the “close proximity” requirement, the country of origin marking must appear on the same sides(s) or surface(s) in which the name of the locality other than the country of origin appears. See HQ 708994, dated April 24, 1978.

The main intent of 19 CFR 134.46 is to avoid confusing, deceptive or misleading impressions regarding the country of origin of an imported product. The specification sheet you submitted indicates that the country of marking statement contains either the words “Made in” or “Manufactured in”. The marking will also be in a size that is comparable to the references to Monster’s addresses in the United States and the European Union. In addition, the proposed country of origin markings on the retail package cards are on the same side of the cards as the non-origin geographical references. Thus, the markings can be seen in the same viewing as non-origin geographical references without having to manipulate the packages. Therefore, we find that the proposed country of origin marking statements appearing on the retail packages containing Monster’s Cable’s electronic products satisfy the requirements of 19 CFR 134.46.

In addition, we find that the country of origin marking statements on the shipping containers shown on the second specification sheet (exhibit 2) satisfies the requirements of 19 U.S.C. 1304 and the applicable regulations at 19 CFR Part 134.

HOLDING:

Based on the information provided, the retail packages that contain Monster Cable’s electronic products are usual and disposable containers under 19 CFR 134.22 and 19 CFR 134.24 and need not be marked to indicate their own country of origin. The proposed country of origin marking statements shown on the submitted specification sheets satisfy the requirements of 19 CFR 134.46. Therefore, the proposed country of origin marking on the retail packages for Monster Cable’s imported electronic products is acceptable under the country of origin marking law, 19 U.S.C. 1304. The proposed country of origin marking on the shipping containers shown on the second submitted specification sheet also satisfies the requirements of 19 U.S.C. 1304 and the applicable regulations at 19 CFR Part 134.

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 Customs officer handling the transaction.

Sincerely,

Gail A. Hamill, Chief

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