Country of Origin Marking; calculator; cables; 19 CFR 134.34; 19 CFR 134.26

HQ W561621 February 25, 2000 MAR-02 RR:CR:SM W561621 MLR CATEGORY: Marking Mr. Ronald E. Edelstein Director, Corporate Customs Texas Instruments Inc. 13510 N. Central Expy. Dallas, Texas 75243 RE: Country of Origin Marking; calculator; cables; 19 CFR 134.34; 19 CFR 134.26 Dear Mr. Edelstein: This is in reference to your facsimile of January 21, 2000, requesting a ruling concerning the country of origin marking of certain cables sold with calculators. A sample was submitted with your request. FACTS: The articles at issue are black cables with plugs that allow two calculators to be connected together. The cables will be packaged, along with a calculator, four batteries, and a book in a heat-sealed clear plastic package. The cardboard backing of the package is labeled "Made in Taiwan, R.O.C." When the items are removed from the package, the marking "Made in Taiwan" is visible on the back of the calculator; the book is marked "Printed by: ....Menasha; WI 54952 U.S.A."; the batteries are marked "Made in USA" and the cables are not marked. It is stated that all of the foreign components, the calculator and the cables, originate in Taiwan and they are bulk shipped to the U.S. where Texas Instruments assembles them into retail packages. ISSUE: Whether the imported cables may be excepted from marking pursuant to 19 CFR l34.32(g). LAW AND ANALYSIS: 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 in 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. Congressional intent in enacting 19 U.S.C. 1304 was "that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlaender & Co. Inc., 27 CCPA 297, 302, C.A.D. 104 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Under 19 CFR 134.32(g), articles to be processed in the U.S. by the importer or for his account otherwise than for the purpose of concealing the origin of such articles and in such a manner that any mark would be necessarily be obliterated, destroyed or permanently concealed are excepted from marking. As provided in 19 CFR 134.36, an article which is to be processed in the U.S. by the importer or for his account shall not be considered to be within the "G" exception if there is a reasonable method of marking which will not be obliterated, destroyed, or permanently concealed by such processing. Customs has granted the exception in cases where the marking on imported component parts would be permanently concealed as a result of the assembly of the parts into a completed article. See HRL 734566 dated June 15, 1992. In this case, the cables could be labeled in such a way that the marking is visible through the packaging. Therefore, the application of 19 CFR 134.32(g) to this scenario is not applicable where the cables are only repackaged in the U.S. Rather, an article may be excepted from marking under 19 U.S.C. 1304(aX3)(D) and 19 CFR 134.32(d), if the marking of a container of such article will reasonably indicate the origin of such article. In T.D. 75-187, it was also stated that semiconductor devices may be excepted from individual marking in appropriate cases under the provisions of 19 CFR 134.34, if the devices are imported in bulk, and repackaged in containers in the U.S. that are marked to indicate the country of origin to an ultimate purchaser. When neither the imported article nor its container is properly marked, and the container in which an article is to be repackaged after release from Customs custody will be marked with the article's proper country of origin, the provisions of 19 CFR 134.34 should be used. In this regard 19 CFR 134.34, provides that an exception may be authorized in the discretion of the port director under 19 CFR 134.32(d) for imported articles which are to be repacked after release from Customs custody under the following conditions: (1) The containers in which the articles are repacked will indicate the origin of the articles to an ultimate purchaser in the U.S. (2) The importer arranges for supervision of the marking of the containers by Customs officers at the importer's expense or secures such verification, as may be necessary, by certification and the submission of a sample or otherwise, of the marking prior to the liquidation of the entry. Viewing the sample provided, we find that the container is properly marked to indicate the origin of the foreign components. Accordingly, the cables may be excepted from individual country of origin marking at the time of importation, provided the port director is satisfied the cables will be repacked to indicate their origin to the ultimate purchaser and the procedures of 19 CFR 134.34 are followed. In the alternative, the procedures of 19 CFR 134.26 may be applied to articles properly marked at the time of importation that will be repackaged in retail containers after their release from Customs c11.stody. In Headquarters Ruling Letter (HRL) 559244 dated March 12, 1996, Customs stated that 19 CFR 134.26 "covers situations where the containers and not the articles are marked (as an exception to the marking requirements) and the articles will be repacked." Accordingly, the certification requirements provided at 19 C.F.R. 134.26 will apply to those articles marked with their country of origin, or to those articles which are imported in properly marked containers. See HRL 559671 dated June 7, 1996. Section 134.26, Customs Regulations (19 CFR 134.26), provides in pertinent part that: If an imported article subject to these requirements is intended to be repacked in retail containers ... after its release from Customs custody, or if the port director having custody of the article, has reason to believe such article will be repacked after its release, the importer shall certify to the port director that: (1) If the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new container shall be marked to indicate the country of origin of the article in accordance with the requirements of this part; Therefore, this procedure may be used if the container in which the cables are imported is properly marked with the cable's country of origin, and if Texas Instruments certifies that it will repackage them in properly marked containers. Please note that 19 CFR 134.26(a) also provides that the certification statement may be submitted in blanket form to cover all importations of a particular product for a given period. HOLDING: On the basis of the information and sample submitted, we find that the cables may be excepted from individual country of origin marking pursuant to 19 CFR 134.32(d), provided the conditions of either 19 CFR 134.34 or 134.26 are satisfied. A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, John Durant, Director Commercial Rulings Division