Country of origin marking of imported incontinent underpads

NY F86752 May 31, 2000 MAR-2 RR:NC:TA:349 F86752 CATEGORY: Marking Mr. Joseph P. Cox Stein Shostak Shostak & O'Hara 515 South Figueroa Street, Suite 1200 Los Angeles, CA 90071-3329 RE: Country of origin marking of imported incontinent underpads Dear Mr. Cox: This is in response to your letter dated April 20, 2000, received by this office on May 4, 2000, on behalf of Geri-Care Products, requesting a ruling on whether the proposed marking of the outer container in lieu of marking the article itself is an acceptable country of origin marking for the imported underpads. A marked sample container was not submitted with your letter for review. Your client imports incontinent underpads from China for sale to commercial laundries and distributors. The distributors in turn sell the underpads to hospitals and nursing homes. The underpads are packed two dozen to each carton. The outside of the carton will be marked with the phrase "Made in China". You have stated that in all instances the underpads are sold by the carton and that the cartons are never broken up. You request an exception from marking the individual underpads because the marking of the containers will indicate the country of origin to the commercial laundries, hospitals and nursing homes. The tariff classification of the underpads was the subject of New York Ruling Letter (NY) F82329 dated February 22, 2000. 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 to 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. 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. 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 underpads by viewing the container in which it is packaged, the individual underpads would be excepted from marking under this provision. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. The underpads are sold to commercial laundries, hospitals and nursing homes. The hospitals and nursing homes are the ultimate purchasers of the imported underpads. The commercial laundries referred to in this request rent linens to various users and are also known as linen rental or linen supply companies. Customs has previously considered the question who is the ultimate purchaser when an importer sells towels to a linen supply company, who in turn rents the towels to its customers. In Headquarters Ruling Letter 708979, May 31, 1978, Customs ruled that the linen supply company which purchases the towels in rolls for rental to its customers is the ultimate purchaser of those imported items. Similarly, in this case, we find that the commercial laundries who buy the underpads and rent them to their customers are the ultimate purchasers of the underpads. Underpads which are imported in and sold to commercial laundries, hospitals and nursing homes 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, legibly and conspicuously marking the container in which the underpads 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 underpads provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 John Hansen at 212-637-7078. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division