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HQ 734434


June 8, 1992

MAR-2-05 CO:R:C:V 734434 AT

CATEGORY: MARKING

Ms. Anibal Roges
The Toy Works, Inc.
Fiddler's Elbow Road
Middle Falls, New York 12848

RE: Country of origin marking of imported textile doll skins; substantial transformation; cutting and sewing of fabric in Mexico

Dear Ms. Roges:

This is in response to your letter of May 17, 1991, requesting a ruling on acceptable country of origin markings for imported textile doll skins. A sample was submitted with your letter. The classification issues you raised were addressed in HQ 089832.

FACTS:

The submitted sample consists of a textile doll skin. You state that your company will be purchasing rolls of U.S. materials, cutting the rolls into squares which will then be silked screened with a doll pattern. The printed square pieces of material will then be exported to Mexico where they will be cut, sewn, clipped and turned before their return to the U.S. for stuffing. You propose to mark the finished stuffed dolls with the country of origin by means of hang tags. The proposed hang tags will either be printed with the words "Screen Printed in U.S.A., Sewn in Mexico" or "Screen Printed in U.S.A., Assembled in Mexico". Although samples of the proposed hang tags were not submitted, photocopies of the proposed country of origin markings were submitted for review.

ISSUE:

What is the country of origin of the imported doll skins which are cut and sewn in Mexico and to be later stuffed in the U.S.?
Do the proposed markings "Screen Printed in U.S.A., Sewn in Mexico" or "Screen Printed in U.S.A., Assembled in Mexico" meet the country of origin marking requirements under the provisions of 19 U.S.C. 1304 and 19 CFR Part 134?

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 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. 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. 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. Friedlander & Co., 27 C.C.P.A. 297 at 302; C.A.D. 104 (1940).

What Is The Country Of Origin Of The Imported Doll Skins?

Customs has already determined in HQ 089832 (October 21, 1991), that the cutting in Mexico of the silk-screened fabric squares into doll parts and the assembly of those parts by sewing, substantially transformed the imported fabric into "products of" Mexico. Accordingly, the country of origin of the imported doll skins is Mexico.

The second question presented is whether the finished doll skins shipped from Mexico undergo a later substantial transformation in the U.S., where they will be stuffed and packaged for sale to the consumer. Customs ruled in HQ 733838 (February 7, 1991), that the country of origin of a stuffed doll was the country where the shell was made inasmuch as the stuffing operation was not a substantial transformation. Accordingly, in this case the process of stuffing the finished doll skins in the U.S. is not a substantial transformation and the country of origin of the stuffed doll skins is Mexico.

Is The Proposed Marking "Screen Printed In U.S.A., Assembled In Mexico" An Acceptable Country Of Origin Marking?

We find that because HQ 089832, determined that the doll skins are not eligible for a partial duty exemption under subheading 9802.00.80, HTSUSA, use of the phrase "Assembled in" is not an acceptable country of origin marking under 19 CFR 10.22. That provision provides that:

Assembled articles entitled to the exception are considered products of the country of assembly for the purposes of the country of origin marking requirements of section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304). If an imported assembled article is made entirely of American-made materials, the United States origin of the material may be disclosed by using a legend such as "Assembled in --- from material of U.S. origin," or a similar phrase.

Accordingly, in this case since it has been determined that the doll skins are not eligible for a partial duty exemption under 9802.00.80, HTSUSA, use of the phrase "Screen Printed in U.S.A., Assembled in Mexico", is not an acceptable country of origin marking.

Does The Proposed Marking "Screen Printed in U.S.A., Sewn In" Satisfy The Requirements Of 19 U.S.C. 1304 And 19 CFR 134.46?

The proposed marking "Screen Printed in U.S.A., Sewn in Mexico" triggers the special marking requirements provided in Section 134.46, Customs Regulations (19 CFR 134.46). Section 134.46 requires that when the name of a locality other than the locality in which the article was manufactured or produced, appears on an imported article or its container, 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. The purpose of this section is to prevent the possibility of misleading or deceiving the ultimate purchaser as to the actual origin of the imported goods. The application of the special marking requirements set forth in this provision is triggered by the presence of the words "Screen Printed in U.S.A.". Accordingly, the country of origin of the doll skins (Mexico) must be preceded by "Made in," "Product of," or other words of similar meaning.

In HQ 733618 (July 26, 1990), Customs ruled that the term "Hand Stitched In" printed on soccer balls made in Pakistan did not satisfy the requirements of 19 CFR 134.46 "that the country of origin marking must be preceded by "Made in," "Product of," or other words of similar meaning. We stated that the production of a soccer ball necessarily involved other operations in addition to hand stitching and that the words "Hand Stitched in Pakistan" would not sufficiently inform the ultimate purchaser that the ball was made in Pakistan. Similarly in this case, we find that the term "Sewn in" does not sufficiently inform the ultimate purchaser that the doll skins are made in Mexico, and therefore the requirement that the country of origin must be preceded by "Made in," "Product of," or other words of similar meaning is not satisfied.

HOLDING:

The country of origin of the imported stuffed dolls skins processed in the manner described above is Mexico.

The proposed markings "Screen Printed in U.S.A., Assembled in Mexico" and "Screen Printed in U.S.A., Sewn in Mexico" are not acceptable country of origin markings for the imported doll skins under the provisions of 19 U.S.C. 1304 and 19 CFR 134.46. Assuming the doll skins are screen printed in U.S.A., the marking "Made in Mexico, Screen Printed in U.S.A.", or similar marking would be acceptable.

Sincerely,

John Durant, Director
Commercial Rulings Division

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