HQ 562798 - Country of origin marking for “Dot-Mounted” Tiles; container marking; 19 CFR §134.32(d); 19 CFR §134.26 - United States International Trade Commision Rulings

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HQ 562798

July 31, 2003

MAR-2-05 RR:CR:SM 562798 RFA

CATEGORY: MARKING

Mr. Troy White
Director of International Logistics
Daltile Corporation
7834 C.F. Hawn Frwy
Dallas, TX 75217

RE: Country of origin marking for “Dot-Mounted” Tiles; container marking; 19 CFR §134.32(d); 19 CFR §134.26

Dear Mr. White:

This is in reference to your letter of June 25, 2003, requesting a ruling concerning the country of origin marking requirements applicable to certain “dot-mounted” tiles imported from Hong Kong in the manufacturer’s cartons with the individual tiles attached to paper in pre-arranged patterns. A sample was submitted with your request.

FACTS:

The sample submitted consists of individual tiles attached to paper in pre-arranged patterns. The manufacturer’s carton was not submitted with the sample for our examination nor was a description provided as to whether it bears any country of marking. According to your letter, the pre-arranged tiles on paper will arrive in the manufacturer’s cartons and shipped to your plant in the United States. At the plant, the paper-mounted tiles are removed from the original cartons to undergo a “dot” mounting process. This process involves a machine that injects a “dot” of adhesive at strategic points between the tiles and then removes the paper, thereby providing a sheet of mosaic tiles that can be easily laid and grouted. These “dot” mounted tile sheets will then be re-packaged in Daltile cartons and distributed to your regional distribution centers and sales centers. The re-packaged cartons will contain ten mosaic sheets. You state that the mosaic sheets are never sold individually, but rather by the carton. As such, you request an exception of the individual marking requirements for the tile sheets under Customs Regulations, 19 CFR §134.32(d), so that only the cartons in which the tiles are re-packaged would be marked with the origin of the articles.

In your submission, you propose that the re-packaged cartons bear the following country of origin marking: “Made in China/Finished in the USA”. You state that the size and placement of the marking on the carton will abide by applicable Customs and Federal Trade Commission country of origin marking regulations.

ISSUE:

Whether the tile sheets may be excepted from individual country of origin marking pursuant to 19 CFR §134.32(d).

LAW AND ANALYSIS:

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. 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., Inc., 27 CCPA 297, 302, C.A.D. 104 (1904). Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304.

Articles for which the containers will reasonably indicate the country of origin are excepted from marking under 19 U.S.C. §1304(a)(3)(D). For an exception to be granted under this provision the article must generally be imported in the container and that container must generally reach the ultimate purchaser unopened. See also 19 CFR §134.32(d).

Section 134.26(a), Customs Regulations {19 CFR §134.26(a)}, provides in pertinent part that:

Certification requirements. If an imported article subject to these requirements is intended to be repacked in retail containers (e.g. blister packs) after its release from Customs custody, or if the port director having custody of the article, has reason to believe that such article will be repacked after its release, the importer shall certify to the port director that: (1) If the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new container shall be marked to indicate the country of origin of the article in accordance with the requirements of this part; or (2) if the article is intended to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or transferee, that any repacking of the article must conform to these requirements.

It is important to note that the procedures set forth at 19 CFR §134.26 apply only to articles which are legally marked at the time of importation. If the articles are not legally marked at the time of importation, the presentation to Customs of the certification and notice to subsequent purchasers or repackers specified in 19 CFR §134.26 will not serve to satisfy the importer’s obligations under 19 U.S.C. §1304 and Part 134 of the Customs Regulations. See HQ 562141, dated November 26, 2001. In this case, where the outermost container of the imported individual tiles attached to paper in pre-arranged patterns is correctly marked with the country of origin of the articles contained within, the certification procedures of 19 CFR §134.26 may be utilized, provided that the containers in which the re-packaged tiles reach the ultimate purchaser will be marked in accordance with the requirements of 19 U.S.C. §1304 and 19 CFR Part 134.

The certification may be submitted in blanket form to cover all importations of a particular product for a given period, but the certification must be filed at each port where the articles are entered. As 19 CFR §134.26 indicates that the certificate of marking may cover all importations of a particular product, the importer must identify that product, whether by name or by part number.

With regard to the proposed marking on the retail packaging, "Made in China/Finished in the USA”, the reference to “USA” triggers the special marking requirements of 19 CFR §134.46 which provides that:

In any case in which the words "United States," or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or location in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced appear on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual 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.

Because the country of origin of the tile will be preceded by “Made in China,” the marking on the retail package for the “dot” mounted tiles will be acceptable under 19 U.S.C. §1304 provided the proposed marking satisfies the size requirements and is printed together on the same surface of the retail container. We note, however, that the country of origin marking need not include a reference to the processing performed in the United States.

In your letter, you indicate that the country of origin of the tiles is China but that the tiles are manufactured by a company in Hong Kong. Please note that goods produced in Hong Kong shall continue to be marked to indicate that their origin is Hong Kong. See 62 FR 30927 (1997) and HQ 560337, dated June 27, 1997.

HOLDING:

Where the outermost container of the tiles at the time of importation is correctly marked with the country of origin of the articles contained within, the certification procedures of 19 CFR §134.26 may be utilized, provided that the containers in which the repackaged “dot” mounted tiles will reach the ultimate purchaser will be marked in accordance with the requirements of 19 U.S.C. §1304 and 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,

Myles B. Harmon, Director

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