MAR-2-05 CO:R:C:V 731088 jd
Jack P. Caolo, Esq.
3600 LTV Center LB 136
2001 Ross Avenue
Dallas, Texas 75201-2997
RE: Country of origin marking requirements for polypropylene mesh
bags
Dear Mr. Caolo:
This is in reply to your letters of March 1, and April 22,
1988, requesting a ruling on the country of origin marking
requirements applicable to polypropylene mesh bags.
FACTS:
According to your submission, your client imports
polypropylene mesh bags, empty and laid flat, in bales of several
thousand each. Each bale is bound firmly with a wrapping, and
the wrapping is imprinted with the words "Made in China".
Your client's customers are packers of perishable fresh
produce. These packers purchase bags baled in units of 1000 and
use the bags as containers in which to send the produce to
market. You characterize the bags as disposable and not the kind
that would typically be reused after the produce is consumed.
We note a discrepancy between your two letters, one stating
bales consist of several thousand bags, the other stating bales
consist of 1000 bags. However, we assume there is no problem
with large bales being divided into smaller bales after
importation because of your affirmative statement that, "[B]ales
of polymesh bags are not broken open until after they are sold
and delivered to the ultimate user. [Your client], or a reseller
for [your client], sells the bale to the ultimate user of the
bags while they are bound in the bale. [Your client] prohibits
persons who purchase the bales from breaking them down and
reselling the bags."
We further note that your letters reference some difficulties
your client has experienced at some Customs districts concerning
importations of these bags. You must follow the procedure for
internal advice set forth in { 177.11(b)(2), Customs Regulations
(19 CFR 177.11(b)(2)), or protest in { 174.11, Customs
Regulations (19 CFR 174.11), for any matter you may wish to
pursue regarding those prior shipments. However, in light of the
economic hardships mentioned in your letters (and in phone
calls), we can address your questions regarding prospective
shipments.
ISSUE:
Are packers of fresh produce the ultimate purchasers of bales
of polypropylene mesh bags used to pack produce for market, such
that country of origin marking on the bale wrappers satisfies 19
U.S.C. 1304?
LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304), provides that every article of foreign origin (or its
container) 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 the English name
of the country of origin of the article. Section 134.1(d),
Customs Regulations (19 CFR 134.1(d)), defines "ultimate
purchaser" as "generally the last person in the U.S. who will
receive the article in the form in which it was imported."
Section 134.24, Customs Regulations (19 CFR 134.24), refers
to containers or holders not designed or capable of reuse.
Paragraph (b) specifically refers to disposable containers that
are imported empty and states that when such containers are
packed and sold in multiple units, country of origin marking
requirements may be met by marking the outermost container which
reaches the ultimate purchaser.
It is the opinion of this office that fresh produce packers
are the ultimate purchasers of bales of polypropylene mesh bags.
When a packer purchases a bale and uses the bags to market
produce, each bag becomes a disposable container used to present
produce for sale; the bag itself is no longer a separate article
of commerce. Accordingly, the country of origin marking on the
bale wrapper satisfies marking requirements in that the marking
is reaching the ultimate purchaser of the bags.
HOLDING:
Fresh produce packers who purchase bales of polypropylene
mesh bags and use the bags to pack produce for market are the
ultimate purchasers of the bags. Country of origin marking on
the bale wrappers, provided it is conspicuous, legible, indelible
and permanent, and conveys the English name of the country of
origin of the bags, satisfies the requirements of 19 U.S.C. 1304.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs and
Admissibility Branch