MAR-05 RR:TC:SM KKV
Jack D. Mlawski
Galvin & Mlawski
440 Park Avenue South
New York, New York 10016-8067
Re: Country of origin marking requirements applicable
to automotive compact disc changers from
Singapore; plastic magazine; FM modulator; remote
control; connecting cables; mounting brackets;
screws; multiple countries of origin; imported in
sealed container; HRL 734491; HRL 734544; HRL
559245; HRL 734101; HRL 734363; minor function and
value not found
Dear Mr. Mlawski:
This is response to your letter dated May 15, 1997 (and
subsequent facsimile dated March 12, 1998), on behalf of US
JVC Corporation ("JVC"), which requests a binding ruling
regarding the country of origin marking requirements
applicable to certain compact disc (CD) changers from
Singapore. Photographs of the CD changer and other
components were submitted for our consideration.
FACTS:
The merchandise at issue consists of an automobile CD
automatic changer and accompanying components. The CD
changer, which is made in Singapore, permits the occupants
of a vehicle to listen to compact discs through the
automobile's radio and audio system and allow the user, by
remote control, to access up to twelve CDS. The CDS are
loaded into a plastic magazine, of Japanese origin, which is
loaded into the CD changer which has been installed in the
trunk of the vehicle. In addition to the changer unit,
remote control, which is a product of Malaysia, and plastic
magazine, the system may also include a frequency modulator
of Chinese origin which is installed in the cab of the
vehicle under the seat, and functions as an interface
between the radio/audio system of the vehicle and the CD
changer unit. Additionally, a CD controller/display unit, a
product of Taiwan, is installed in the dashboard of the
vehicle to indicate to the listener the number of music
tracks and operation being performed. Lastly, you indicate
that the carton may also contain mounting brackets, screws
and cables for which the country of origin has not been
provided.
We are informed that each of the components is
separately marked with its respective country of origin and
imported in a single carton sealed by the manufacturer. You
indicate that the product is sold by retailers who display
the article and permit its operation by potential purchasers
who wish to compare its audio quality with other models.
Additionally, you indicate that, in some instances, the
consumer may request that the retailer open the packaged
product at the time of purchase to ensure that all
components of the system have been included in the box. You
ask whether the imported container may be marked solely with
the country of origin of the CD changer unit, "Made in
Singapore" or, in the alternative, with the marking, "CD
Changer Made in Singapore, Additional Components
Individually Marked with Specific Country of Origin." In a
facsimile dated March 12, 1998, you amended your original
request to include a third proposed marking, "Components
Made in _____, _____, and _____"
ISSUE:
Whether the proposed markings, "Made in Singapore," "CD
Changer Made in Singapore, Additional Components
Individually Marked with Specific Country of Origin" or
"Components Made in _____, _____, and _____" on the outside
of a sealed carton containing a variety of components with
different countries of origin satisfy the country of origin
marking requirements of 19 U.S.C. 1304 and 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), mandates that the ultimate
purchaser in the United States must be able to find the
marking easily and read it without strain. That section
further provides that the degree of permanence should be at
least sufficient to insure that in any reasonably
foreseeable circumstance the marking shall remain on the
article until it reaches the ultimate purchaser unless it is
deliberately removed. Under 19 CFR 134.24(d)(2), articles
which are sold in sealed containers which are normally
unopened by the ultimate purchaser before purchase must be
marked to indicate the country of origin of its contents.
Under certain circumstances, Customs previously has
allowed importers to place a marking on the exterior
container instructing the ultimate purchaser to view the
actual article to determine its country of origin. In
Headquarters Ruling Letter (HRL) 734491, dated April 12,
1992, Customs ruled that an importer of automobile parts may
mark the packaging "Contents Imported, See Article for
Country of Origin." In HRL 734544, dated July 24, 1992,
Customs permitted an importer to mark the cartons not only
with the possible countries of origin, but also with the
instruction to inspect the item itself for the actual
country of origin. In HRL 559245, dated December 13, 1995,
Customs ruled that the importer of a knife set may mark the
packaging, "Cutlery and block are imported as marked on the
product." However, in order to qualify for this type of
marking, Customs held, in each instance, that the carton
must be unsealed, so as to permit the purchaser to inspect
the product prior to purchase. Under the facts before us,
however, the carton is not imported in an unsealed
condition, but has been sealed by the manufacturer prior to
shipment. Although you indicate that the unit may (or may
not) be displayed in a retail setting, and that the carton
may (or may not) be opened by the retailer at the request of
the consumer, such circumstances do not ensure compliance
with the marking requirements, as the ability of the
ultimate purchaser to ascertain the country of origin is
dependent not upon the language, placement, method and size
of the marking itself, as set forth by 19 CFR 1304, but may
rest upon the actions of a third party.
In support of your position regarding the acceptability
of the first two proposed markings, you cite HRL 734363,
dated February 18, 1992, in which Customs considered the
marking of a box containing a U.S. origin modem and foreign
origin transformer and telephone cables. Customs determined
that the cable and transformer were only minor pieces of the
modem set both in function and in value. The function of
the two imported items was minimal as they served only to
plug the modem into the wall socket and to connect the modem
to the telephone wall jack. Likewise, the value of the two
articles was minimal as well, as together they represented
only 3% of the value of the product. Customs concluded that
the two articles had an insignificant effect on the
purchasing decision and held that the proposed marking
"Modem Made in USA, Transformer and Telephone Cable of
Foreign Origin are Individually Marked with Specific Country
of Origin" was permissible, notwithstanding the fact that
the ultimate purchaser would not see the markings prior to
purchase because the product was shrink wrapped.
Unlike the situation presented in HRL 734363, supra,
the function of the components accompanying the CD Changer
is far greater than a mere connection to a power source.
The plastic magazine serves to organize and store material
in a manner which permits selective retrieval. The remote
control permits the operation of the CD Changer from a
location distant from the Changer unit. The frequency
modulator facilitates electronic communication between two
separate systems located in two different locations, i.e.,
the vehicle radio/audio system in the cab of the vehicle and
the CD Changer located in the trunk of the vehicle. The
controller/display unit serves as an informational relay of
operations, in visual format, which permits the user to
ascertain current unit function. As such, the components
are an integral part of the total unit, for without them the
subject CD Changer would not function in its intended
capacity, i.e., as a means of automatically selecting,
playing and changing a wide variety of compact discs while
in an automobile. Only the cables, which serve as a conduit
for current between the units and the mounting brackets and
screws, which retain the placement of the various components
in a secure fashion to prevent damage, would appear to be
minor in function, in keeping with the discussion in HRL
734363, supra.
In addition to having minor function, the foreign
transformer and telephone cables in HRL 734363, supra, were
also minor in value, together comprising only three percent
of the total value of the article. In the case before us,
however, no information of any kind has been submitted with
regard to any of the subject components which would permit
us to determine that a given component was minor in value.
Based upon the information presented, it has not been
demonstrated that any of the components imported with the
subject CD changer are so minor in function and value that
they would have an insignificant effect on the purchasing
decision of the imported article. Accordingly, the proposed
markings "Made in Singapore" or "CD Changer Made in
Singapore, Additional Components Individually Marked with
Specific Country of Origin" are not acceptable, as the
requirements of 19 U.S.C. 1304 and 19 CFR Part 134 are not
met.
Your facsimile dated March 12, 1998, amended your
original ruling request to include a third proposed marking,
"Components Made in _____, _____, and _____" with the blanks
indicating the country of origin of each of the various
components in the sealed container. In HRL 557796, dated
June 3, 1994, Customs considered the country of origin
marking for Christmas tree light sets assembled in Macau
from imported components. In the absence of a substantial
transformation of the components into a new and different
article in a single country, Customs determined that the
components must each be marked with their respective
countries of origin, and held that a central origin label
with the marking "Components Made in Taiwan, Macau and
Korea" or "Bulbs - Macau; Control Box - Korea; other
components - Taiwan" satisfied the requirements of 19 U.S.C.
1304. Similarly, in HRL 734101, dated July 9, 1991, Customs
allowed toys sold inside plastic eggs in a vending machine
to be individually marked with the actual country of origin
but, because this information was not visible, Customs
permitted the machine to be 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."
Therefore, where the CD changer and accompanying
components, which are marked with their respective countries
of origin, are imported into the U.S. in a sealed carton,
the marking "Components Made in _____, _____ and _____"
printed conspicuously on the carton or on a central origin
label permanently affixed to the carton in a conspicuous
location is acceptable, as it satisfies the requirements of
19 U.S.C. 1304 and 19 CFR Part 134.
HOLDING:
Where a CD changer is imported into the U.S. in a
sealed container, together with other components with
different countries of origin, the proposed markings, "Made
in Singapore" or "CD Changer Made in Singapore, Additional
Components Individually Marked with Specific Country of
Origin" do not satisfy the country of origin marking
requirements of 19 U.S.C. 1304 and 19 CFR Part 134.
However, the marking "Components Made in _____, _____, and
_____" is acceptable, provided that the requirements of
legibility, permanency and conspicuousness 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 handling the transaction.
Sincerely,
John Durant
Director
Commercial Rulings Division