562580 56 Ruling Active

Request for binding ruling regarding country of origin marking requirements applicable to imported backhoe parts repackaged and sold in the U.S. 19 CFR 134.32(d); 19 CFR 134.26

Issued February 4, 2003 by U.S. Customs and Border Protection.

Tariff classification

HTS codes: 1304, 2003, 1930, 1940

Headings: 1304, 2003, 1930, 1940

Product description

You state that DRP Industries intends to import foreign-origin backhoe parts into the U.S. At the time of importation, the parts are packaged in plastic bags and are coated in an oily rust inhibitor. The bags are contained either in 9” by 9” x 6 boxes or in bulk in 2 x 2 x 2 pallet boxes. All boxes are marked with the company name, address and country of origin.

CBP rationale

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. 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. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the Customs Regulations implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), mandates that the ultimate purchaser in the United States must be able to find the marking easily and read it without strain. Articles for which the marking of the containers will reasonably indicate the origin of the article are excepted from marking under 19 U.S.C. 1304(a)(3)(D). For an exception to be granted under 19 U.S.C. 1304(a)(3)(D), generally the article must be imported in a marked retail container which will reach the ultimate purchaser unopened. See also 19 CFR 134.32(d). Where imported articles will be repackaged in the U.S., the provisions of 19 CFR 134.26 are applicable. Section 134.26(a) provides that if an article subject to country of origin marking is intended to be repacked after its release from Customs custody, or the port director having custody of the article has reason to believe that the 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..." [emphasis added]; or 2) that if he does not repack the article he will give notice to subsequent purchasers or repackers of their obligations under section 19 U.S.C. 1304 and Part 134, Customs Regulations. Therefore, the imported backhoe parts may be excepted from individual marking pursuant to 19 CFR 134.32(d), provided that Customs officials at the port of entry are satisfied that the articles will reach the ultimate purchaser in properly marked containers and the certification requirements of 19 CFR 134.26 are executed.

Full text

HQ 562580 February 4, 2003 MAR-05 RR:CR:SM 562580 KKV CATEGORY: Marking Ms. Darlene DiBernardo Deringer Logistics Consulting Group 1 Lincoln Boulevard Suite 225 Rouses Point, NY 12979 RE: Request for binding ruling regarding country of origin marking requirements applicable to imported backhoe parts repackaged and sold in the U.S. 19 CFR 134.32(d); 19 CFR 134.26 Dear Ms. DiBernardo: This is in response to your letter dated November 5, 2003 (and subsequent facsimile dated January 15, 2003), on behalf of DRP Industries, which requests a binding ruling regarding the country of origin marking requirements applicable to imported backhoe parts repackaged and sold in the U.S. FACTS: You state that DRP Industries intends to import foreign-origin backhoe parts into the U.S. At the time of importation, the parts are packaged in plastic bags and are coated in an oily rust inhibitor. The bags are contained either in 9” by 9” x 6 boxes or in bulk in 2 x 2 x 2 pallet boxes. All boxes are marked with the company name, address and country of origin. 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. 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. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the Customs Regulations implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), mandates that the ultimate purchaser in the United States must be able to find the marking easily and read it without strain. Articles for which the marking of the containers will reasonably indicate the origin of the article are excepted from marking under 19 U.S.C. 1304(a)(3)(D). For an exception to be granted under 19 U.S.C. 1304(a)(3)(D), generally the article must be imported in a marked retail container which will reach the ultimate purchaser unopened. See also 19 CFR 134.32(d). Where imported articles will be repackaged in the U.S., the provisions of 19 CFR 134.26 are applicable. Section 134.26(a) provides that if an article subject to country of origin marking is intended to be repacked after its release from Customs custody, or the port director having custody of the article has reason to believe that the 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..." [emphasis added]; or 2) that if he does not repack the article he will give notice to subsequent purchasers or repackers of their obligations under section 19 U.S.C. 1304 and Part 134, Customs Regulations. Therefore, the imported backhoe parts may be excepted from individual marking pursuant to 19 CFR 134.32(d), provided that Customs officials at the port of entry are satisfied that the articles will reach the ultimate purchaser in properly marked containers and the certification requirements of 19 CFR 134.26 are executed. HOLDING: Based upon the information provided, the imported backhoe parts may be excepted from individual marking pursuant to 19 CFR 134.32(d), provided that Customs officials at the port of entry are satisfied that the articles will reach the ultimate purchaser in properly marked containers and the certification requirements of 19 CFR 134.26 are executed. 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 transactions. Sincerely, Myles B. Harmon Acting Director Commercial Rulings Division

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