COUNTRY OF ORIGIN MARKING OF FRAGRANCES IMPORTED FROM TAIWAN

N254464 July 10, 2014 MAR-2 OT:RR:NC:4:414 CATEGORY: MARKING Ms. Sandra Liss Friedman Barnes, Richardson, & Colburn, LLP 100 William Street, Suite 305 New York, NY 10038 RE: COUNTRY OF ORIGIN MARKING OF FRAGRANCES IMPORTED FROM TAIWAN Dear Ms. Friedman: In your letter dated June 9, 2014, you requested a ruling on the country of origin marking requirements for perfume on behalf of your client Palm Beach Beaute, LLC (PBB). Representative samples of several items were submitted with your letter and will be returned. U.S. origin perfume bases are sent to Taiwan for dilution with alcohol and water. The alcohol and water will be sourced in Taiwan. The blending process will produce eau de parfums, eau de toilettes and colognes dependent upon the amount of perfume oil base used in the production. The blending process decreases the viscosity of the fragrances so that they may be applied via a spray mechanism. No other ingredients will be added to the mixture during processing in Taiwan. You have indicated that the blended fragrances will be allowed to rest for one week to ensure that the concentration of the dilution is uniform throughout the mixture. You state that no chemical changes have occurred during the mixing and resting processes. The products will be bottled and packaged for retail sale. You suggest that the articles do not require country of origin marking under the Customs laws because they are U.S.-origin products that have not been substantially transformed in Taiwan. A similar issue was addressed in Headquarters ruling HQ H175959. 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, U.S. Customs and Border Protection Regulations (19 C.F.R. §134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the ‘country of origin’ within the meaning of [the marking laws and regulations].” For country of origin marking purposes, a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. However, a substantial transformation will not result from a minor manufacturing or combing process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940).We find that the processing of perfume oil bases in Taiwan into the finished fragrances does not constitute a substantial transformation for country of origin marking purposes under 19 U.S.C. § 1304. While the finished fragrances are made suitable for spraying by diluting perfume oil bases, they retain the same chemical identity and character as the precursor perfume oil bases. In this case, mere changes in concentration and viscosity do not result in a substantial transformation, despite the fact that the processing operations in Taiwan make the fragrances suitable for human application. Therefore, for the purposes of 19 U.S.C. § 1304, the country of origin of perfume oil bases, which determines the essential character of the fragrances, remains the United States. 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). If you have any questions about such marking, we suggest that you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, NW, Washington, D.C. 20508.Perfumery, cosmetic, and toiletry products are subject to the requirements of the Food, Drug and Cosmetic Act, and the Fair Packaging and Labeling Act (FPLA), which are administered by the U.S. Food and Drug Administration. Questions regarding FDA requirements may be addressed to the U.S. Food and Drug Administration, Office of Cosmetics and Colors, 5100 Paint Branch Parkway, College Park, MD 20740-3835, telephone number (301) 436-1130, or by visiting their website at: www.fda.gov. 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 Barbara Kiefer at [email protected]. Sincerely, Gwenn Klein Kirschner Director National Commodity Specialist Division