MAR-2-05 RR:TC:SM 560527 MLR
Port Director
U.S. Customs Service
P.O. Box 3130
(Juarez-Lincoln Bridge)
Laredo, TX 78044
RE: Internal Advice; Country of origin marking for
brooms; broom heads; handles; Mexico; Italy; NAFTA;
Article 509
Dear Director:
This is in reference to your memorandum of May 29,
1997, requesting Internal Advice on the country of origin
marking requirements for broom heads imported by Cabello-Canales Worldwide on behalf of American Cleaning Supply.
A sample broom head was submitted with your request.
FACTS:
It is stated that cornbroom broom heads (classifiable
under subheading 9603.10, Harmonized Tariff Schedule of
the United States (HTSUS)) are made in and imported from
Mexico without handles. The broom heads are packed 24 to
a box, with the box marked "Made in Mexico." It is stated
that they will be assembled with Italian handles in the
U.S. by Rubbermaid Commercial. Each broom head is covered
by a plastic sleeve at the time of entry with complete
marketing information (including the words Greenville,
N.C.) and the marking "Assembled in USA from Mexican &
Italian components", intended for the ultimate purchaser.
ISSUE:
Whether the finished brooms may be marked, via the
marking on the plastic sleeves, "Assembled in USA from
Mexican & Italian components".
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 (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, Customs Regulations (19 CFR Part
134) implements the country of origin marking requirements
and exceptions of 19 U.S.C. 1304.
The first question to be resolved is what is the
country of origin of the finished broom. Section
134.1(b), Customs Regulations (19 CFR 134.1(b)), defines
"country of origin" as:
The country of manufacture, production or growth of
any article of foreign origin entering the U.S.
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 this
part; however for a good of a NAFTA country, the
NAFTA Marking Rules will determine the country of
origin. (Emphasis added.)
Section 134.1(j), Customs Regulations (19 CFR
134.1(j)), provides that the "NAFTA Marking Rules" are the
rules promulgated for purposes of determining whether a
good is a good of a NAFTA country. A "good of a NAFTA
country" is defined in 19 CFR 134.1(g) as an article for
which the country of origin is Canada, Mexico, or the U.S.
as determined under the NAFTA Marking Rules set out at 19
CFR Part 102. Accordingly, since the broom head is stated
to be made in Mexico, the NAFTA Marking Rules will be
applied for purposes of determining whether the finished
broom continues to be a product of Mexico. Therefore,
Headquarters Ruling Letter (HRL) 734906 dated December 7,
1993, (holding that a broom head from Mexico and a handle
from Italy were not substantially transformed when they
were assembled together in the U.S., and, therefore, could
be marked "Handle from Italy, Head from Mexico") is not
applicable to the facts at hand.
Section 102.11, Customs Regulations (19 CFR 102.11),
sets forth the required hierarchy for determining whether
a good is a good of a NAFTA country for marking purposes.
Paragraph (a) of this section states that the country of
origin of a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic
materials; or
(3) Each foreign material incorporated in that good
undergoes an applicable change in tariff
classification set out in section 102.20 and
satisfies any other applicable requirements of
that section, and all other applicable
requirements of these rules are satisfied.
In this case, the applicable rule is 19 CFR
102.11(a)(3). The finished brooms are classifiable under
heading 9603, HTSUS. The applicable change in tariff
classification for heading 9603 set out in section
102.20(s), Section XX, Chapters 94 through 96, provides:
9603 ... A change to heading 9603 from any other
heading.
It is stated that the imported broom head is
classifiable under subheading 9603.10, HTSUS. Therefore,
the imported broom heads will not undergo the requisite
tariff shift. While a description of the broom handle
from Italy was not provided, they are either classifiable
under heading 3926, HTSUS, if they are plastic, or heading
4417, HTSUS, if they are wood. Therefore, since the broom
handles from Italy are not classifiable in heading 9603,
HTSUS, they will meet the requisite tariff shift.
Because the broom heads do not undergo the requisite
tariff shift, section 102.11(b) of the hierarchial rules
must be applied, which in pertinent part provides that:
Except for a good that is specifically described in
the Harmonized System as a set, or is classified as a
set pursuant to General Rule of Interpretation 3,
where the country of origin cannot be determined
under paragraph (a), the country of origin of the
good:
(1) Is the country or countries of origin of the
single material that imparts the essential
character of the good ...
When determining the essential character of a good under
19 CFR 102.11, 19 CFR 102.18(b)(1) provides that only
domestic and foreign materials that are classified in a
tariff provision from which a change is not allowed shall
be taken into consideration. Section 102.18(b)(1)(iii),
Customs Regulations (19 CFR 102.18(b)(1)(iii)), provides
that if there is only one material that is classified in a
tariff provision from which a change in tariff
classification is not allowed, then that material will
represent the single material that imparts the essential
character to the good under 19 CFR 102.11.
Pursuant to 19 CFR 102.18(b)(1)(iii), the single material
that imparts the essential character of the finished broom is
the broom head. Accordingly, the country of origin of the
finished broom is the country of origin of the broom head,
which is Mexico. Therefore, it will not be acceptable to mark
the finished broom "Assembled in USA from Mexican & Italian
components" because the country of origin of the finished broom
is Mexico and because of the provisions of section 134.46.
Section 134.46, Customs Regulations, as amended by T.D. 97-72 (62 FR 44211, August 20, 1997), provides that whenever words
appear on imported articles indicating the name of a geographic
location other than the true country of origin of the article,
and those words may mislead or deceive the ultimate purchaser
as to the actual country of origin, there shall appear legibly
and permanently in close proximity to such words, 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. We note in this case, that the plastic sleeve also
contains the marking "Cleaning Products Inc., Greenville, N.C.,
27835-1606 U.S.A." on the same side as the marking "Assembled
in USA from Mexican & Italian components." Accordingly, it is
our opinion that since the above marking may mislead the
ultimate purchaser to believe that the origin of the article is
the U.S., the broom must be labeled, "Made in Mexico" or
"Product of Mexico" or words or similar meaning.
The importer also states that it wishes to inform the
consumer of the complete process and country of origin of the
completed broom, and claims that the use of the legend
"Assembled in" is not applicable to circumstances where there
are multiple countries of origin (the importer is referring to
the determination in HRL 734906 which held that the country of
origin of the broom is Italy and Mexico). Therefore, the
importer claims that 19 CFR 134.43(e) is not applicable.
Section 134.43(e), Customs Regulations (19 CFR 134.43(e)),
provides that:
[w]here an article is produced as a result of an assembly
operation and the country of origin of such article is
determined under this chapter to be the country in which
the article was finally assembled, such article may be
marked, as appropriate, in a manner such as the following:
(1) Assembled in (country of final assembly);
(2) Assembled in (country of final assembly) from
components of (name of country or countries of origin
of all components); or
(3) Made in, or product of, (country of final
assembly).
In a general temporary marking exception published at 61 FR
37678 (July 19, 1996), Customs stated that it will not be
acceptable to use the terms "Made in", "Product of", or words
of similar meaning, along with the words "Assembled in" in a
single country of origin marking statement on articles of
foreign origin imported into the U.S. However, as the marking
statute pertains to foreign articles imported into the U.S.,
and in this case only the broom head imported into the U.S.
remains foreign (and dictates the final origin of the finished
broom), Customs would not object to marking the finished broom,
"Assembled in U.S.A. with Broom Head Made in Mexico and handle
from Italy," or "Components Assembled in U.S.A., Broom Made in
Mexico." The Federal Trade Commission, however, should be
contacted regarding the use of the phrase "Assembled in U.S.
A."
HOLDING:
Based upon the information provided, pursuant to 19 CFR
102.18(b)(1)(iii), the country of origin of the finished broom
is the country of origin of the broom head, which is Mexico.
Accordingly, it will only be necessary to mark the finished
broom "Made in Mexico" on the same side and surface and in a
comparable size as the U.S. address. However, since the
marking statute pertains to foreign articles imported into the
U.S., and only the broom head imported into the U.S. remains
foreign (and dictates the final marking of the finished broom),
Customs would not object to marking the finished broom,
"Assembled in U.S.A. with Broom Head Made in Mexico and handle
from Italy", or "Components Assembled in U.S.A., Broom Made in
Mexico." The Federal Trade Commission, however, should be
contacted regarding the use of the phrase "Assembled in U.S.A."
This decision should be mailed by your office to the
internal advice requester no later than 60 days from the date
of this letter. On that date the Office of Regulations and
Rulings will take steps to make the decision available to
Customs personnel via the Customs Rulings Module in ACS and the
public via the Diskette Subscription Service, Freedom of
Information Act and other public access channels.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division