THE COUNTRY OF ORIGIN MARKING OF WATCHES

N236621 January 14, 2013 MAR-2 OT:RR:NC:N4:414 CATEGORY: MARKING Mr. Mike Gee U.S. Agency Watch Co. 1114 12th Street, #308 Santa Monica, CA 90403 RE: THE COUNTRY OF ORIGIN MARKING OF WATCHES Dear Mr. Gee: This is in response to your letter dated November 26, 2012 requesting a ruling on the country of origin marking for watches. A marked sample was not submitted with your letter for review. You indicate that you plan to produce a watch which will incorporate as many USA made parts as possible. The watch bands, the crystals, the watch cases, the dials and the hands will be made in the USA. The movements will be made in Switzerland. The watch will be assembled and water tested in China. The dial will state Swiss Made Movement as the country of origin. Your question concerns whether the watches can be marked on the back watch case cover with the words Made in USA since the USA made parts represent approximately 80 percent or more of the cost of the watch. 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 imported into the U.S. shall be marked in a conspicuous place as legibly, and permanently as the nature of the article (or 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. The country of origin of a watch or clock is the country of manufacture of the watch or clock movement. The addition of the hands, dial, case, or watchband adds definition to the time piece but does not change the character or use of the watch or clock movement. In order to satisfy the requirements of 19 U.S.C 1304, a watch must be legibly marked with the name of the country of manufacture of the watch movement in a conspicuous place. Section 134.43(b), Customs Regulations (19 CFR 134.43(b)), in conjunction with section 11.9, Customs Regulations (19 CFR 11.9), provides that watches must be marked in accordance with the special marking requirements set forth in Chapter 91, Additional U.S. Note 4 of the Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202). This note requires that any watch or clock movement, or watch or clock case provided for in the subpart, whether imported separately or attached to any article provided for in the subpart, shall not be permitted to be entered unless conspicuously and indelibly marked by cutting, die-sinking, engraving, stamping (including by means of indelible ink), or mold-marking (either indented or raised), as specified in the provisions of this note. This marking is mandatory. Customs has no authority for granting exceptions to the special marking requirements for watches. Section (a) of Additional U.S. Note 4 requires that watch movements shall be marked on one or more of the bridges or top plates to show the name of the country of manufacture, the name of the manufacturer or purchaser; and, in words, the number of jewels, if any, serving a mechanical purpose as frictional bearings. Section (c) of Additional U.S. Note 4 requires that watch cases shall be marked on the inside or outside of the back cover to show the name of the country of manufacture, and the name of the manufacturer or purchaser. The country of manufacture in these requirements refers to where the movements and cases are manufactured rather than where the watch was made. The special marking must be accomplished by one of the methods specified in the Chapter 91, Additional U.S. Note 4, and using stickers is not an acceptable alternative. Since there is no marked sample or information relating to the special marking requirements, we cannot issue a marking ruling on the special marking requirements of Chapter 91 of the Harmonized Tariff Schedule of the United States. However, the marking of the dial of the watch with Swiss Made Movement, as described above, is conspicuous, legible and permanent in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. We cannot issue a marking ruling on marking the watch with Made in USA on the back watch cover. Whether an article may be marked Made in USA or similar words denoting US origin is an issue under the authority of the Federal Trade Commission. We suggest that you contact the Federal Trade Commission, Division of Enforcement, 600 Pennsylvania Avenue, NW, Washington, DC 20580. This ruling is being issued under provision 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 Barbara Kiefer at (646) 733-3019. Sincerely, Thomas J. Russo Director National Commodity Specialist Division