MAR-2-05 CO:R:C:S 558755 DEC
Mr. George R. Tuttle, III
Law Offices of George R. Tuttle
Three Embarcadero Center - Suite 1160
San Francisco, California 94111
RE: Country of origin marking of integrated circuits; Multiple
countries of origin;
T.D. 75-187; T.D. 71-296(1); Abbreviations of countries; 19
CFR 134.45
Dear Sir:
This is in response to your letter dated September 13, 1994,
on behalf of your client, Microchip Technology Incorporated
(MTI), concerning the country of origin marking requirements of
integrated circuits. This ruling only addresses the propriety of
the proposed alternative listing of multiple countries or origin
for the integrated circuits and presumes the countries of origin
listed are the proper countries of origin.
FACTS:
MTI develops, manufactures, and markets various integrated
circuits used for high-volume embedded control applications in
consumer, automotive, office automation, communications, and
industrial products. MTI's sales are divided between original
equipment manufacturers who incorporate the integrated circuits
into electronic assemblies and to distributors who resell the
integrated circuits to manufacturers and other end users who
incorporate them into their products.
MTI manufactures integrated circuits on wafers at its
Arizona facilities. After testing, the wafers are exported and
individual die are assembled and encapsulated (commonly referred
to as "packaging") for export. MTI assembles and tests most of
its products at their facility in Taiwan. However, an increasing
percentage of MTI's products is assembled in other countries such
as Korea, Hong Kong, Malaysia, People's Republic of China,
Thailand, Indonesia, and the Philippines. MTI's integrated
circuits are each marked and/or embossed with the name of the
country where the
assembly occurred. Integrated circuits assembled in countries other than Taiwan are
shipped to the Taiwan facility where they are held in inventory pending shipment to
customers.
After testing, nearly all of MTI's integrated circuit products are volume packaged
in either translucent plastic tubes (containing up to 100 integrated circuits), on tape-and-reel carriers (containing 900-3300 integrated circuits), specialty trays, or in boxes.
Since only lots from one assembler are tested at a time and the integrated circuits are
packaged immediately after testing, the origin of the devices contained in these
particular packages is the same.
Products leaving MTI's Taiwan facility are packaged in inner and outer shipping
cartons. The inner cartons that are used in conjunction with the tube carriers are
capable of holding up to 160 tubes. An inner carton designed for the tape-and-reel
carrier contains either one or two reels. The outer shipping carton contains up to six
inner cartons. MTI's production process, as described by counsel, involves the
packaging of integrated circuits all with a particular country of origin into tubes, tape-and-reel carriers, specialty trays, or in boxes. MTI does not currently mix integrated
circuits that are from different countries of origin in the same inner carton. However, it
is possible that inner cartons containing integrated circuits of various origins will be
combined within a single outer shipping carton.
Currently, MTI hand marks the tubes, reels, and trays with the name of the
country of assembly of the integrated circuits after they are inserted into or on their
respective carrier. In cases where the tubes, reels, or trays are wrapped in antistatic
and vacuum sealed bags, MTI places a sticker or other label on the bag. The inner
cartons are also hand marked with the country of assembly of the devices packaged in
the box. Outer shipping cartons are marked with a single country of origin if all of the
articles contained in the carton are the same. If there are inner cartons of differing
origins, the outer carton will be left blank with respect to the country of origin.
Typically, the outer carton is shipped to the customer without being opened after
it arrives in the United States at a centralized location. In circumstances where an
outer carton contains inner cartons intended for different customers, the outer cartons
are broken down and the inner cartons are shipped to the individual customers.
Customers who resell MTI products are advised in writing, pursuant to section 134.26,
Customs Regulations (19 CFR 134.26), of their obligation to ensure that any
repackaged MTI product is in a properly marked container.
MTI is requesting a ruling as to whether it may cease marking the tubes, reels,
and trays with the specific country of origin of the integrated circuits while continuing to
mark the individual integrated circuits with their actual country of origin. MTI proposes
to mark the inner and outer shipping containers with either of the following all-inclusive
country of origin marking:
1. MADE IN ONE OR MORE OF THE FOLLOWING COUNTRIES:
TAIWAN, KOREA, HONG KONG, MALAYSIA, PRC, INDONESIA,
PHILIPPINES, OR THAILAND
2. ARTICLES CONTAINED IN THIS CARTON ARE MARKED WITH
THEIR ACTUAL COUNTRY OF ORIGIN, WHICH MAY BE ONE
OR MORE OF THE FOLLOWING COUNTRIES: TAIWAN, KOREA,
HONG KONG, MALAYSIA, PRC, INDONESIA, PHILIPPINES, OR
THAILAND.
For purposes of this ruling, the Customs Service is assuming that the country of
assembly of the integrated circuits is the country of origin. In addition, Customs is
assuming that the manufacturers who use the integrated circuits in the production of
their products are the ultimate purchasers of the integrated circuits.
ISSUE:
Whether MTI's proposed method of marking the individual integrated circuits
together with a disjunctive multiple country of origin marking on the outermost
containers is acceptable pursuant to 19 U.S.C. 1304 and part 134, Customs
Regulations (19 CFR Part 134).
LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides
that, unless excepted, every article of foreign origin imported into the United States
shall be marked in a conspicuous place as legibly, indelibly, 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 United States 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., 27 C.C.P.A. 297, 302
(1940). Part 134 of the Customs Regulations 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 United
States must be able to find the marking easily and read it without strain.
Customs has allowed an alternative country of origin marking statement similar
to the marking you have proposed. In Headquarters Ruling Letter (HRL) 734101, dated
July 9, 1991, we allowed toys sold inside plastic eggs in a vending machine to be
individually marked with the actual country of origin, but since this was not visible, to
have the machine marked "The Toys Contained In This Machine Are Marked With The
Country Of Origin, And May Be Made In One Or More Of The Following Countries:
Hong Kong Taiwan China". In that case, like the present case, the items themselves
are marked with the actual country of origin but the packaging contains the alternative
country of origin designations.
Section 134.45(b)(2), Customs Regulations (19 CFR 134.45(b)(2)), provides
that:
Abbreviations which unmistakably indicate the name of a country,
such as "Gt. Britain" for "Great Britain" or "Luxemb" and "Luxembg"
for "Luxembourg" are acceptable. Variant spellings which clearly
indicate the English name of the country of origin, such as "Brasil"
for "Brazil" and "Italie" for "Italy," are acceptable.
Customs has determined that articles manufactured in the People's Republic of China
shall be marked using the legend "The People's Republic of China", "People's Republic
of China", or by use of the short-form name "China". Therefore, the proposed country
of origin legends need to be amended to incorporate one of these three approved
markings for products of Chinese origin. T.D. 71-296(1). Accordingly, Customs is
satisfied that the proposed country of origin marking:
ARTICLES CONTAINED IN THIS CARTON ARE MARKED WITH
THEIR ACTUAL COUNTRY OF ORIGIN, WHICH MAY BE ONE
OR MORE OF THE FOLLOWING COUNTRIES: TAIWAN, KOREA,
HONG KONG, MALAYSIA, PEOPLE'S REPUBLIC OF CHINA,
INDONESIA, PHILIPPINES, OR THAILAND
is acceptable subject to the requirements of section 134.45, Customs Regulations (19
CFR 134.45).
Customs has addressed the issue of multiple country of origin marking
requirements for integrated circuits. T.D. 75-187. In T.D. 75-187, Customs allowed a
disjunctive listing of multiple countries of origin when the articles (semiconductor
devices, including transistors, diodes, and integrated circuits) were commingled for a
bona fide reason, and subsequently repackaged for sale to an ultimate purchaser. This
determination was based on the situation where a manufacturer would commingle
many devices of the same type from various countries during the testing and
symbolization marking process. MTI's production process, as described by counsel,
involves the packaging of integrated circuits all with a particular country of origin into
tubes, tape-and-reel carriers, specialty trays, or in boxes. Since MTI's production
process does not involve the commingling of the integrated circuits as described in T.D.
75-187, Customs will not permit the outermost containers to reach the ultimate
purchaser to be marked "made in one or more of the following countries."
HOLDING:
MTI may cease marking tubes, reels, and trays with the specific country of origin
of the integrated circuits when the outermost container that reaches any ultimate
purchaser of the integrated circuits is marked with the following all-inclusive country of
origin marking:
ARTICLES CONTAINED IN THIS CARTON ARE MARKED WITH
THEIR ACTUAL COUNTRY OF ORIGIN, WHICH MAY BE ONE
OR MORE OF THE FOLLOWING COUNTRIES: TAIWAN, KOREA,
HONG KONG, MALAYSIA, PEOPLE'S REPUBLIC OF CHINA,
INDONESIA, PHILIPPINES, OR THAILAND
provided that all other applicable requirements of the marking statute are met.
A copy of this ruling letter should be attached to the entry documents filed at the
time this merchandise is entered. If the documents have been filed without a copy, this
ruling should be brought to the attention of the Customs officer.
Sincerely,
John Durant
Director, Commercial Rulings Division