COUNTRY OF ORIGIN MARKING OF IMPORTED TEXTILE STRAPS

N091356 January 25, 2010 MAR-2 OT:RR:NC:TA:351 CATEGORY: MARKING Stephanie Ann Anderson Gerber Legendary Blades 14200 SW 72nd Avenue Portland, OR 97224 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED TEXTILE STRAPS Dear Ms. Anderson: This is in response to your letter dated January 18, 2010 requesting a ruling on whether imported textile straps are required to be individually marked with the country of origin if it is later to be processed in the U.S. by a U.S. manufacturer. A marked sample was not submitted with your letter for review, but pictures were included. Your company imports three textile hook-and-loop fastener straps packaged together in a plastic bag. Your packing department removes the three straps from the bag and assembles them onto a plastic sheath for a knife. You request that the straps be excepted from country of origin marking requirements. 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. 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. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35. In this case, the imported straps are substantially transformed as a result of the U.S. processing; therefore the U.S. manufacturer is the ultimate purchaser of the imported straps and under 19 CFR 134.35 only the containers which reach the ultimate purchaser are required to be marked with the country of origin “China.” You also ask if the finished item, a U.S.-made knife in a U.S.-made sheath, with the Chinese straps, may be marked “Knife Made in USA / Sheath Made in USA from US and imported components. If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase “Made in the USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of proposed markings indicating that an article is made in the U.S. 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 Mitchel Bayer at (646) 733-3102. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division