COUNTRY OF ORIGIN MARKING OF IMPORTED SMART CARDS; ARTICLE 509

NY B81979 February 24, 1997 MAR-2 RR:NC:85:108 B81979 CATEGORY: MARKING Mr. Thomas W. Singer Livingston International Inc. 352 Sonwil drive Buffalo, New York 14225 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED SMART CARDS; ARTICLE 509 Dear Mr. Singer: This is in response to your letter dated February 4, 1997 requesting a ruling on behalf of B.A. Customs Cards as to whether the proposed method of marking of the container in which the smart cards are to be imported with the country of origin in lieu of marking the article itself is an acceptable country of origin marking for the imported item. A marked sample container was not submitted with your letter for review. Your letter also requests tariff classifications on the subject items. 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 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. The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations. Section 134.45(a)(2) of the regulations, provides that "a good of a NAFTA country may be marked with the name of the country of origin in English, French or Spanish. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. 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) of the regulations, provides that the ultimate purchaser of a good of a NAFTA country is the last person in the United States who purchases the good in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. 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 smart cards by viewing the container in which it is packaged, the individual smart card would be excepted from marking under this provision. Smart cards 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). Accordingly, marking the container in which the smart cards are imported and sold to the ultimate purchaser in lieu of marking the article itself is an acceptable country of origin marking for the imported item provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser. The applicable subheading for the smart cards with a chip will be 8542.12.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for cards incorporating electronic integrated circuits ("smart" cards). The rate of duty is free. The applicable subheading for the printed plastic cards without chip or magnetic stripe will be 4911.99.8000, Harmonized Tariff Schedule of the United States (HTS), which provides for other (non-enumerated) printed matter. The rate of duty will be 3.4 percent ad valorem. The applicable subheading for the smart cards with a magnetic strip will be 8523.30.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for prepared unrecored media...cards incorporating a magnetic stripe. The duty rate will be 1.7 percent ad valorem. If the smart cards with a megnetic strip have data recorded on it, then they will be 8524.60.0000 HTS which provides for records, tapes and other recorded media...cards incorporating a magnetic stripe. The rate of duty will be 3.9 cents per square meter of recording surface. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181). 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 Phil Carabetta at 212-466-5672. Sincerely, Robert B. Swierupki Chief, Metals & Machinery Branch National Commodity Specialist Division