MAR-2-05 CO:R:C:V 731021 lw
Category: Marking
Mr. Nicholas F. Coward
Baker & McKenzie
815 Connecticut Avenue, N.W.
Washington, D.C. 20006-4078
RE: Country of origin marking requirements for integrated
circuits
Dear Mr. Coward:
This is in response to a letter dated January 19, 1988,
from Stephen P. Beven, Manager of the Customs and Export
Licensing Administration for Advanced Micro Devices, Inc., ("the
importer") and to your letter dated May 18, 1988, in which you
confirm your representation of the importer. Your client
manufactures integrated circuits in the Philippines, and wishes
to use an alternative country of origin marking on some of its
circuits.
FACTS:
The importer wishes to mark the integrated circuits
("IC's") with the abbreviation "PHIL" as an alternative country
of origin marking to "PHILIPPINES". In support of its position
the importer states that a competitor has been importing IC's
made in the Philippines using the abbreviation "PHIL" to
designate the country of origin (you submitted a sample of what
you claim to be a competitor's product). In addition, the
importer claims that the following factors are relevant to our
determination concerning the abbreviation "PHIL": 1) the IC's
are very small; often measuring less than an inch in length and
1/4 inch wide; 2) the plastic rails or carriers which the IC's
must be shipped in obscure the marking on the IC; 3) the IC's
are sold mainly to manufacturers who realize that the majority of
IC's of American companies are made from U.S. fabricated die but
are assembled in non-U.S. locations, while the retail market is
very small; 4) Manufacturers know where the marking on IC's is
usually found and, because IC's are made in three or four common
locations, would recognize "PHIL" as the abbreviation for
Philippines; 5) Although the IC's originate in the Philippines
according to U.S. Customs Service definitions, they are
essentially a U.S. product.
LAW AND ANALYSIS:
Section 134.45(a), Customs Regulations (19 CFR 134.45(a)),
provides that the required markings shall include the English
name of the country of origin, unless other marking to indicate
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the English name of the country of origin is specifically
authorized by the Commissioner of Customs. Notice of acceptable
markings other than the English name of the country of origin
shall be published in the "Federal Register" and the "Customs
Bulletin." Section 134.45(b) states that abbreviations which
unmistakenly indicate the name of a country are acceptable.
Customs has previously ruled that the abbreviation "PHIL"
to designate the country of origin of IC's manufactured in
Manila, Philippines, was not acceptable because it did not
unmistakenly indicate the name of the country of origin in
accordance with 19 CFR 134.45(b) (727843 LR; July 3, 1985). In
that ruling it was suggested that the word PHILIPPINES be
hyphenated and placed on two lines, printed in smaller letters,
or written as PHILIPNES, to accommodate the marking to a small
space.
The fact that a competitor has been importing IC's using
the abbreviation "PHIL" is not a determining factor in this case.
However, because the competitor's IC is not properly marked, by
copy of this letter we are forwarding your information to the
Office of Commercial Fraud, U.S. Customs Service, 1301
Constitution Avenue, N.W., Room B102, Washington, D.C. 20229, for
further investigation and appropriate action. Further
information you may have regarding the importation of these IC's
may be provided directly to that office.
With regard to the importer's claim that the small size of
the IC prohibits marking the country of origin as "PHILIPPINES,"
as suggested in Ruling 727843, the print size can be reduced or
"PHILIPPINES" can be hyphenated, or written as "PHILIPNES."
In response to the second point raised by the importer,
country of origin marking regulations are in part directed at
concern that the ultimate purchaser be made aware of the country
of origin of an imported article. Therefore, as long as the
ultimate purchaser can be unmistakenly informed as to the country
of origin, the fact that the marking may be obscured during
shipment is irrelevant.
In addition, the importer claims that IC's are purchased
mainly by manufacturers who realize that the Philippines is one
of three or four of the most common locations in the world for
assembly of IC's,and thus would recognize "PHIL" as an
abbreviation for the Philippines. Further, the manufacturers
also know where the country of origin marking is found. It is
our opinion that because manufacturers are not the only buyers of
IC's, and because there is a retail market, the country of origin
must still be marked so that the ultimate purchaser will be able
to unmistakenly identify the name of the country of origin.
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Finally, the last issue raised by the importer, that the
IC's are essentially a U.S. product, addresses the question of
the country of origin of the article rather than the manner in
which it should be marked. Inasmuch as it has been determined
that the IC's are a product of the Philippines, they must be
marked as such.
HOLDING:
Based on the above considerations, and after examination of
the sample submitted, we are of the opinion that the factors
raised by the importer as relevant in considering the
acceptability of "PHIL" are not convincing. The abbreviation
"PHIL" is not acceptable because it does not unmistakenly
designate the country of origin. In accordance with our long-
standing position, we believe that "PHIL" does not comply with 19
CFR 134.45(b). Therefore, the IC's must either be marked
"PHILIPPINES," or by one of the alternative acceptable methods
suggested.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch
cc: Irwin Josephs, NIS
1cc: CLA-2 CO:R:C:V:LWEDDELL:LDC:6/22/88
Mr. Nicholas F. Coward
Baker & McKenzie
815 Connecticut Avenue, N.W.
Washington, D.C. 20006-4078