Country of origin marking requirements for imported metal and plastic clips and fixtures used by retailers for holding signs

HQ 731861 August 21, 1989 MAR 2-05 CO:R:C:V 731861 pmh CATEGORY: Marking Ms. Judith A. Bradt Canadian Embassy 2450 Massachusetts Avenue, N.W. Washington, D.C. 20008-2881 RE: Country of origin marking requirements for imported metal and plastic clips and fixtures used by retailers for holding signs Dear Ms. Bradt: This is in response to your letters of October 5 and October 19, 1988, requesting a ruling on the country of origin marking requirements for metal and plastic clips made in Canada and used by retailers in the U.S. for attaching signs to shelf units. We regret the delay in responding to your request. FACTS: Your October 5, 1988 letter indicates that the subject clips and fixtures are manufactured by Kost Klip Manufacturing Limited, of British Columbia, Canada and are sold to retailers in the U.S. for use in attaching price signs to shelving units in retail stores. The clips are sold to retailers in bulk cartons or packs, but not individually. Your October 19, 1988 letter states that each pack contains 100 of any given item and will bear a 3/4" round sticker with a maple leaf in the middle and surrounded by the words "Made in Canada." The cases contain one or more packs each and are affixed with a 6" by 10" label bearing the words: "Kost Klip Mfg Limited Box 1315, Comox, B.C. Canada V9N 7Z8 (604) 339-5495." The lettering is 1.5" in size. In addition, each clip and fixture is individually marked. The metal items are stamped and the plastic items are affixed with an adhesive label. You have submitted a brochure depicting the various types of imported clips and fixtures. Your letter and the pictures in the -2- brochure indicate that each metal clip is stamped with the following: "KOST KLIP COMOX B.C. CAN PAT." In your letter you indicate that each plastic clip and fixture will bear a 3/4" round sticker with the following: "Kostiuk Mfg (604) 339-5495 Comox, B.C. CAN." You wish to know whether this combination of labelling practices would satisfy the country of origin marking requirements. ISSUE: Whether the described labelling practices satisfy the country of origin marking requirements. LAW AND ANALYSIS: Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides, in general, that all articles of foreign origin imported into the U.S., or their containers, shall be legibly and conspicuously marked to indicate the country of origin to an ultimate purchaser in the U.S. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1, Customs Regulations (19 CFR 134.1), defines "ultimate purchaser" as the last person in the U.S. who will receive the article in the form in which it was imported. The ultimate purchaser in this case is the retailer who receives the clips and fixtures in bulk cartons and bags. Therefore, the question is whether the clips and fixtures are properly marked when they reach these retailers. The clips and fixtures are marked individually by means of an engraved stamp. However, the name Canada, the country of origin of the clips and fixtures, is indicated by the abbreviation "CAN." We note that section 134.45(b), Customs Regulation (19 CFR 134.45(b)), states that abbreviations which unmistakably indicate the name of the country of origin are acceptable. Customs has specifically ruled that neither "CDA" (724336 dated January 16, 1984) nor "CAN" (722566 dated September 14, 1983) are acceptable abbreviations for Canada for country of origin marking purposes under 19 U.S.C. 1304. Accordingly, we find that the individual marking of "CAN" used on each of the clips and fixtures in this case, is not acceptable as it does not unmistakably indicate Canada as the country of origin. -3- Although the individual marking on each of the clips and fixtures in this case is not acceptable, we find that they may be excepted from individual country of origin marking pursuant to 19 U.S.C. 1304(a)(3)(D). Under 19 U.S.C. 1304(a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), an exception from individual marking is applicable where the marking of a container of an imported article will reasonably indicate the country of origin of such article. This exception is normally applied in cases where the article(s) is imported in a properly marked container and Customs officials at the port of entry are satisfied that the ultimate purchaser, i.e., the last person in the U.S. to receive the article in the form in which it was imported, will receive it in its original unopened marked container. As noted above, we consider the ultimate purchaser in this case to be the retailers who receive the clips and fixtures in bulk cartons and bags. So long as the clips and fixtures are imported and sold only in the cartons and bags that are marked in the manner described above, and Customs officials at the port of entry are satisfied that the marking is legible, permanent and conspicuous and that the U.S. retailers will receive them in this fashion, we are of the opinion that the marking satisfies the statutory requirements. Customs officials may require an affidavit to the effect that the retailers will receive the imported articles in the cartons and bags described herein. In addition, we note that you have not indicated the size of the lettering used for the words "Made In Canada" on the round stickers affixed to the bulk bags; we advise that such lettering be at least 1/8" in size. HOLDING: Based on the above considerations and after careful review of the submitted materials, we find that the imported articles if imported and sold only in the properly marked bulk containers as described above, satisfy the country of origin marking requirements. The marking "CAN" which appears on the individual clips and fixtures is not acceptable as it does not unmistakably indicate Canada as the country of origin. Sincerely, Marvin M. Amernick Chief, Value, Special Programs and Admissibility Branch