HQ 558830 - Country of origin marking of gloves - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1995 HQ Rulings > HQ 558677 - HQ 558835 > HQ 558830

Previous Ruling Next Ruling
HQ 558830

September 6, 1995

MAR-2-05 R:C:S 558830 KR

CATEGORY: MARKING

Mr. Ray Ryder
Tom Thumb Glove Company
P.O. Box 640
Wilkesboro, NC 28697

RE: Country of origin marking of gloves

Dear Mr. Ryder:

This is in response to your letter received by this office on October 17, 1994, requesting a ruling regarding country of origin marking requirements applicable to machine knit seamless string work gloves coated with PVC compound. Samples of the gloves before and after the PVC compound was applied were submitted for examination.

FACTS:

You state that you intend to import machine knit seamless string work gloves from Korea. The gloves are 70% cotton and 30% polyester. After importation into the U.S., the gloves are coated with a PVC compound across the inside palm and fingers. The gloves are sold to distributors who then resell the gloves to the industrial market. You state that the gloves will be purchased by a company from the distributor and given free of charge to the employees of the company. The gloves are sold to the distributor in cases containing one dozen sets, each set containing one dozen pairs of gloves. The smallest unit of sale by the distributor is in a set of one dozen pairs of gloves.

ISSUES:

1. What is the country of origin of the work gloves? 2. Whether the gloves must be marked individually, or may the container of the smallest unit of sale of the gloves be marked with the country of origin.

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 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 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. Section 134.41(b), Customs Regulations (19 CFR be able to find the marking easily and read it without strain.

Section 134.35, Customs Regulations (19 CFR 134.35), states that the manufacturer or processor in the U.S. who converts or combines the imported articles into articles having a new name, character or use will be considered the ultimate purchaser of the imported article within the scope of 19 U.S.C. 1304 and the article will be excepted from marking.

A substantial transformation occurs when articles lose their identity and become new articles having a new name, character, or use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at 270 (1940); Koru North America v. United States, 12 CIT 1120, 701 F. Supp. 229 (1988). The question of when a substantial transformation occurs for marking purposes is a question of fact to be determined on a case-by-case basis. Uniroyal Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026 (1982), aff'd, 1 Fed. Cir. 21, 702 F.2d 1022 (1983).

In this situation, the simple coating of the glove with PVC compound does not alter the essence of the item. Prior to the PVC coating, the item was a fully useable glove. After the PVC compound is added, the item remains a glove. Therefore, there is no substantial transformation of the glove, and the country of origin of the glove after it is further processed by adding the PVC compound remains Korea.

An article is excepted from marking under 19 U.S.C. ?1304 (a)(3)(D) and 19 CFR ?134.32(d), if the marking of the container of such article will reasonably indicate the origin of such article. This exception is applicable if Customs is satisfied that the marked container in which the article is imported will reach the ultimate purchaser in all reasonably foreseeable circumstances.

Section 134.1(d), Customs Regulations, (19 CFR ?134.1(d)), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. Customs has previously ruled that a plant or concern which purchases gloves for use by its employees is considered the ultimate purchaser, and that the gloves may be excepted from individual country of origin marking pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR ?134.32(d). See C.S.D. 89-89 (March 18, 1989); letter ruling 703319 (May 14, 1974); HQ 729800 (October 10, 1989); HQ 732793 (December 20, 1989); HQ 735480 (March 20, 1995); HQ 734681 (October 16, 1992). It is our opinion that the circumstances you describe are substantially the same, and that the ultimate purchaser of the gloves you import is the industrial concern which provides them free of charge to its employees.

Before granting an exception from individual marking, the district director of Customs at the port of entry must be satisfied that the ultimate purchaser will receive the gloves in their original unopened marked container and that the gloves will be used only as indicated. In this case, the smallest unit of sale is one dozen pairs of gloves. Therefore, the unit of one dozen pairs of gloves must be marked with the country of origin in a method which is sufficiently secure to be certain that the ultimate purchaser will receive the gloves properly marked. Marking the shipping carton is not sufficient, because although the minimum selling unit may be one dozen, the shipping carton contains one dozen of the dozen pairs. This can be broken down by the distributor prior to reaching the ultimate purchaser. Therefore, the marking on the shipping carton is not sufficient to fulfill the country of origin marking requirements of 19 U.S.C. ?1304(a)(3)(D); 19 CFR ?134.32(d). You indicated that you wish to inform the ultimate purchaser of the U.S. origin of the PVC material. This is possible as long as the country of origin of the finished glove, Korea, is clear. Therefore, a marking such as "Made in Korea, PVC applied in U.S." would be acceptable.

HOLDING:

The country of origin of the gloves is Korea. The ultimate purchasers of the industrial gloves are the industrial companies which provide the gloves to their employees. The industrial gloves may be excepted from individual marking if the packaging is sufficient to meet the requirements of 19 U.S.C. by the distributor must be marked with the country of origin, and the marking must be sufficiently secure to assure that the gloves will remain in the same packaging, properly marked, until the gloves reach the employers who provide the gloves free of charge to the employees. The U.S. origin of the PVC coating may be indicated as long as the country of origin of the finished gloves, Korea, is clearly indicated. Therefore, a marking such as "Made in Korea, PVC applied in U.S." would be acceptable.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is 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,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling