The country of origin marking of a baitcasting reel and fishing line from China

N299576 August 29, 2018 MAR-2-30:OT:RR:NC:N1:424 CATEGORY: Marking Mr. Tianshi Cui Eposeidon Outdoor Adventure Inc. 425 Oak Street Unit A Garden City, NY 11530 RE: The country of origin marking of a baitcasting reel and fishing line from China Dear Mr. Cui: In your letter dated July 24, 2018, you requested a ruling on the country of origin of baitcasting reels and fishing line. You inquired about the country of origin marking requirements for the KastKing Assassin Carbon Baitcasting Reel and the KastKing SuperPower Braid Fishing Line. Photographs and a representative sample of each item were received with your inquiry. From the information you provided, all of the parts and materials used in the manufacture and production of the aforementioned items are purchased in China. You state that the assembly, packaging and quality check all take place in China. You further state that the designing process that takes place in New York includes product and package design, data analysis and market research. You suggest that the country of origin remains China, however, in your initial request, you proposed that the items be labeled “Designed in New York, Assembled in China”. 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 United States the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country or origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means 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 Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908). In this case, we find the design process that takes place in New York does not result in a substantial transformation and the country of origin will be China. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. In order to meet the marking requirements, the baitcasting reel and fishing line must be conspicuously, legibly and permanently marked with the country of origin in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. Accordingly, marking the outer most container “Made in China” in which the items are imported and sold to the ultimate purchaser is an acceptable country of origin marking. If a U.S. reference appears on the imported items or the packages when they are imported into the U.S., it is necessary to consider the necessity for additional marking. Section 134.46, Customs Regulations (19 CFR 134.46), deals with cases in which the words “United States,” or “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced, appears on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin. In such a case, there shall appear, legibly and permanently, in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by “Made in,” Product of,” or other words of similar meaning. The purpose of this requirement is to prevent the possibility of misleading or deceiving the ultimate purchaser of an article as to the actual origin of the imported good. Based upon review of the sample provided, the KastKing Assassin Carbon Baitcasting Reel appears to be legally marked with the proper country of origin. The outermost label indicates that the product is “Made in China”. Also, based upon review of the sample provided, the KastKing SuperPower Braid Fishing Line does not appear to be legally marked with the proper country of origin. Therefore, if imported as is, this item will not meet the country of origin marking requirements of 19 U.S.C. 1304. Accordingly, the KastKing SuperPower Braid Fishing Line would be considered not legally marked under the provisions of 19 C.F.R. 134.11 which states, “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 container) will permit, in such manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.” 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 Roseanne Murphy at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division