The tariff classification of swatch books from Mexico.

NY D84289 November 24, 1998 CLA-2-63:RR:NC:TA:352 D84289 CATEGORY: Classification TARIFF NO.: 6307.90.9989 Mr. Randy L. Pohler R.L. Pohler & Company 1411 Las Vacas Rd. P.O. Box 999 Del Rio, Texas 78841-0999 RE: The tariff classification of swatch books from Mexico. Dear Mr. Pohler: In your letter dated October 29, 1998, on behalf of N.A.F.T.A., Inc., Del Rio, Texas, you requested a tariff classification ruling and marking requirements of swatch books assembled in Mexico from United States and foreign materials. The samples are being returned as requested. FACTS: Your request was submitted for three swatch books, item numbers 776, 498 and 9806. The swatch books consist of various rectangular fabric pieces with pinked edges bound together onto a cardboard display board. Printed information appears on the back of the fabric pieces. The books are used by distributors for soliciting orders for domestic products. The books measures approximately 6 3/4" x 11" x 1 1/2", 7 1/2" x 10" x 1 1/4" and 13" x 16" x 1 1/4", respectively. The articles are composite goods manufactured of cardboard and the various swatches of woven fabrics. Based on the purpose of these products the essential character of the these items is imparted by the textile fabrics. ISSUE: What is the classification of these swatch books and whether articles which will be used for the solicitation of orders for domestic products and will not be sold distributed or given away are excepted from country of origin marking? CLASSIFICATION: The applicable subheading for the swatch books will be 6307.90.9989, Harmonized Tariff Schedule of the United States (HTS), which provides for other made up articles...Other. The rate of duty will be 7 percent ad valorem. COUNTRY OF ORIGIN MARKING: You have requested a country of origin marking exception under 19 CFR 134.32(h) for the swatch books that are manufactured in Mexico with fabric of United States and foreign origin. The paper and plastic components are of United States origin. You indicate that the imported swatch books will be provided free of charge to distributors who will utilize the books to solicit orders for fabric that is sold in the United States. You also indicated that rolls or bolts of fabric of United States origin and some fabric of foreign origin are shipped to the Mexican manufacturer of the swatch books. Section 304 of the Tariff Act of 1930, as amended, provides, in general, that all articles of foreign origin imported into the United States shall be legibly, conspicuously and permanently marked to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. Section 134.1, Customs Regulations, defines ultimate purchaser as generally the last person in the United States who will receive the article in the form in which it was imported. Section 134.32, Customs Regulations, lists the general exceptions to the marking requirements, provided, in pertinent part: *** (d) Articles for which the marking of the containers will reasonably indicate the origin of the articles; *** (f) Articles imported for use by the importer and not intended for sale in their imported or any other form; *** (h) Articles for which the ultimate purchaser must necessarily know the country of origin by reason of the circumstances of their importation or by reason of the character of the articles even though they are not marked to indicate their origin; *** (m) Products of the United States exported and returned. Before we can determine whether any of the above exceptions apply, we must decide who is the ultimate purchaser. In HQ732082 dated March 14, 1989, Headquarters ruled on the country of origin requirements of imported articles to be used by the importer as samples to be shown to prospective customers to solicit sales of similar articles. Headquarters determined that the ultimate purchaser was the importer who uses the samples in his business, and not the prospective customer. As such, it was determined that the imported samples may be excepted from marking under either section 134.32(d) or 134.32(f). In the instant matter, the ultimate purchasers of the imported swatch books are also the companies that use the books to solicit sales of fabric. As such, two exceptions from marking may apply. First, as long as the swatch books are imported in properly marked cartons, and Customs officials at the port of entry are satisfied that the swatch books will reach the ultimate purchasers in their original marked containers, the books may be excepted from individual marking under section 134.32(d). Alternatively, if you submit satisfactory evidence at the time of importation which shows that the ultimate purchasers sent the U.S. materials to the Mexican manufacturers, the swatch books are excepted from marking under section 134.32(h). In such circumstances, the ultimate purchasers would "necessarily know from the circumstances of the importation" that the swatch books were manufactured in Mexico. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 Alan Tytelman at 212-466-5896. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division