CBP Ruling 730974 — Country of origin marking requirements on soap imported from Canada to…

Tariff classification

HTS codes: 1930, 1987, 1304, 1988, 1981, 1985

Headings: 1930, 1987, 1304, 1988, 1981, 1985

Product description

Your letter states that a shipment of your company's soap, en route to a destination in the United States, was stopped by U.S. Customs officials because the soap was not properly marked to indicate country of origin. You indicate that since 1981, you have been shipping soap in outer containers marked "Made in Canada" to your U.S. hotel clients based on advice from your broker, C. J. Tower. Tower advised you that hotels were the ultimate purchasers of the soap, therefore the marking on the outer containers was sufficient. You included a sample piece of soap in the "Clamshell" design. The words "MARCO BEACH HILTON" are worked into the surface of the soap and the piece is enclosed in clear plastic wrap sealed with a sticker imprinted with the same words.

CBP rationale

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that every article of foreign origin (or its container) 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 the English name of the country of origin of the article. Section 134.1(d), Customs Regulations (19 CFR 134.1(d)), defines "ultimate purchaser" as "generally the last person in the U.S. who will receive the article in the form in which it was imported." If the imported article is distributed as a gift the recipient is the ultimate purchaser ({ 134.1(d)(4)). Section 134.46, Customs Regulations (19 CFR 134.46), provides that in any case in which the words "U.S.", or "American", the letters "U.S.A.", any variation of such words or letters, or the name of any city or locality in the U.S., 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, 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. Customs has previously ruled that various guest room amenities such as bottle openers, playing cards, and soap, must be individually marked to indicate country of origin (728112 LR; June 5, 1985). This individual marking is necessitated because the room guest is considered the ultimate purchaser of the various amenity. Customs does not require a separate cash transaction for each article subject to marking. In the case of hotel room soap, the guest is the last person in the U.S. who receives the soap in the form in which it was imported. Therefore, whether the guest is considered to have purchased the soap as part of room rental, or whether the soap is considered a gift incidental to room rental, the soap must be individually marked to indicate to the room guest the foreign origin of the soap.

Full text

HQ 730974 April 27, 1988 MAR-2-05 CO:R:C:V 730974 jd CATEGORY: Marking Mr. John E. Taylor Sales Manager Taylor Soaps-Perfumes Limited 30 Kern Road Don Mills, Ontario Canada M3B 1T1 RE: Country of origin marking requirements on soap imported from Canada to be used in U.S. hotel rooms Dear Mr. Taylor: This is in reply to your letter of December 21, 1987, wherein you request a ruling on country of origin marking requirements applicable to soap your company exports to the United States. The soap is sold to U.S. hotels for use in guest rooms. FACTS: Your letter states that a shipment of your company's soap, en route to a destination in the United States, was stopped by U.S. Customs officials because the soap was not properly marked to indicate country of origin. You indicate that since 1981, you have been shipping soap in outer containers marked "Made in Canada" to your U.S. hotel clients based on advice from your broker, C. J. Tower. Tower advised you that hotels were the ultimate purchasers of the soap, therefore the marking on the outer containers was sufficient. You included a sample piece of soap in the "Clamshell" design. The words "MARCO BEACH HILTON" are worked into the surface of the soap and the piece is enclosed in clear plastic wrap sealed with a sticker imprinted with the same words. ISSUE: Who is the ultimate purchaser for country of origin marking purposes of soap that is provided in hotel rooms to be used by hotel guests? LAW AND ANALYSIS: Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that every article of foreign origin (or its container) 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 the English name of the country of origin of the article. Section 134.1(d), Customs Regulations (19 CFR 134.1(d)), defines "ultimate purchaser" as "generally the last person in the U.S. who will receive the article in the form in which it was imported." If the imported article is distributed as a gift the recipient is the ultimate purchaser ({ 134.1(d)(4)). Section 134.46, Customs Regulations (19 CFR 134.46), provides that in any case in which the words "U.S.", or "American", the letters "U.S.A.", any variation of such words or letters, or the name of any city or locality in the U.S., 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, 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. Customs has previously ruled that various guest room amenities such as bottle openers, playing cards, and soap, must be individually marked to indicate country of origin (728112 LR; June 5, 1985). This individual marking is necessitated because the room guest is considered the ultimate purchaser of the various amenity. Customs does not require a separate cash transaction for each article subject to marking. In the case of hotel room soap, the guest is the last person in the U.S. who receives the soap in the form in which it was imported. Therefore, whether the guest is considered to have purchased the soap as part of room rental, or whether the soap is considered a gift incidental to room rental, the soap must be individually marked to indicate to the room guest the foreign origin of the soap. HOLDING: Hotel room guests are the ultimate purchasers of small pieces of soap placed in the room for their use. Accordingly, the soap must be marked to indicate its country of origin to the room guest. If the piece of soap itself, and/or any wrappings bear the name of any place other than the country of origin of the soap, the country of origin preceded by the words "Made in", "Product of", or other words of similar meaning must appear in close proximity to the reference to the place that is not the country of origin. Sincerely, Marvin Amernick Chief, Value, Special Programs and Admissibility Branch

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