NY I85859 - Country of origin marking of imported bar mops and napkins. - United States International Trade Commision Rulings

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NY I85859

September 20, 2002

MAR-2 RR:NC:TA:349 I85859

CATEGORY: MARKING

Mr. Jim Rengepes
Olympic Supply Company
P.O. Box 1063
Havertown, PA 19083

RE: Country of origin marking of imported bar mops and napkins.

Dear Mr. Rengepes:

This is in response to your letter received September 5, 2002 requesting a ruling on whether the proposed marking of the outer container in lieu of marking the article itself is an acceptable country of origin marking for imported bar mops and napkins. A representative sample was submitted.

You are a commercial laundry service and import bar mops and momie napkins from Pakistan. The bar mops will be imported in both “A” and “B” qualities. These items will either be used by your firm or sold to other linen rental companies. You note in your letter that you sell only the “A” quality bar mops. The bar mops are packed 60 pieces to a clear polyethylene bag while the momie napkins are packed 24 pieces per bag. Visible through the plastic bag is a paper insert which is marked with the fiber content, RN number and the country of origin. The plastic bags are packed in burlap bales that are also marked with the country of origin. You have indicated that the sales to the linen supply companies are always in full bale lots. Your firm and the linen supply companies rent the bar mops and napkins to hotels and restaurants. The bar mops and napkins remain the property of your firm when rented by you or the linen supply company when rented by them. You request an exception from marking the individual bar mop or napkin because the marking of the containers will indicate the country of origin.

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. 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), 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.

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 the bar mops and napkins by viewing the container in which it is packaged, the individual bar mops and napkins would be excepted from marking under this provision. Additionally, articles imported for use by the importer and not intended for sale in their imported or any other condition are excepted from marking under section 134.32(f), Customs Regulations (19 CFR.134.32(f)).

Customs has generally taken the approach that a person who receives imported articles for his use in a rental business is considered the ultimate purchaser of the imported articles and the articles are excepted from marking. In Headquarters Ruling Letter (HQ) 708979, May 31, 1978, Customs ruled that the linen supply company which purchases the towels in rolls for rental to its customers is the ultimate purchaser of those imported items. Likewise in HQ 733267, dated June 27, 1990, held that the ultimate purchasers of imported shop towels are the linen supply companies and that, consequently, the imported towels are excepted from individual marking. More recently in HQ 561545 dated October 20, 2000, Customs stated that “we find that the linen supply companies who buy the shop towels in unbroken bales for rental to machine shops and other industrial users are the ultimate purchasers of the shop towels. Regardless of whether the bales are contained in burlap bags marked with the country of origin or, alternatively, in plastic bags whose visible paper insert is marked with the country of origin, so long as the country of origin marking on the outermost container meets the requirements for legibility, permanence and conspicuousness, the requirements of 19 U.S.C. 1304 will be satisfied, provided that the port director of Customs at the port of entry is satisfied that the imported towels will reach the ultimate purchaser – the linen supply companies – in the marked containers in which the articles were imported.”

In the instant case Olympic Supply Company not only sells to other supply companies but you are also a company doing the renting. HQ 734390 dated March 20, 1992 addressed a similar situation and noted: “Here, the company doing the importing is also the company doing the renting or leasing. Thus the articles are not intended for sale in their imported form, but are for the importer's use as the ultimate purchaser within the meaning of 19 C.F.R. §134.32(f). Accordingly, except as set forth below, the imported equipment may be excepted from country of origin marking pursuant to 19 C.F.R. §134.32(f). Moreover, as provided at 19 U.S.C. 1304(b), the containers of articles excepted under 19 U.S.C. 1304(a)(3)(F) are not required to be marked with the country of origin of their contents.”

In this case, we find that the linen rental companies who buy the bar mops and napkins from Olympic Supply and rent them to their customers are the ultimate purchasers of the bar mops and napkins. In those transactions where Olympic Supply rents the bar mops and napkins, Olympic Supply is the ultimate purchaser. As noted in HQ 734390 above, when imported for rental by your company the containers are not required to be marked (see section 134.24(d)(1) Customs Regulations). Since you never sell the “B” quality bar mops, they do not require origin marking. However, you have indicated that all of the plastic bags will contain visible paper inserts marked with the country of origin and the outer bale will be marked with the country of origin. As long as the marking of the outer bales meets the requirements for legibility, permanence and conspicuousness, the requirements of 19 U.S.C. 1304 will be satisfied.

The bar mops and napkins which are imported in containers 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) and (f). Marking the container in which the bar mops and napkins are imported in lieu of marking the article itself is an acceptable country of origin marking for the imported bar mops and napkins 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 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 John Hansen at 646-733-3043.

Sincerely,

Robert B. Swierupski
Director,

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