MAR-2-05 CO:R:C:V 731583 KG
Fred Zapata
Perkins-Goodwin Co.
One Rockefeller Plaza
New York, N.Y. 10020
RE: Country of origin marking for printing paper
Dear Mr. Zapata:
This is in response to your letter of June 28, 1988,
requesting a ruling on whether printing paper made in West
Germany that is intended for use in the U.S. production of
magazines, catalogues and brochures is exempt from the country of
origin marking requirements contained in section 304 of the
Tariff Act of 1934, as amended (19 U.S.C. 1304).
FACTS:
Perkins-Goodwin Co. ("the importer") is a wholly owned
subsidiary of Haindl Papier, a West German company that
manufactures printing paper. The importer is the exclusive source
of this product in the U.S. and also offer products from other
foreign sources. A customer that desires to purchase printing
paper places an order with the importer that specifies the grade
name, weight, and any other specifications reqested and the
manufacturer of the paper. The importer ships the paper to the
customer in rolls which are wrapped with brown paper which is
marked with a label containing the paper grade, weight,
specifications and country of origin. The paper is used by
customers in the production of magazines, catalogues and
brochures.
The importer received a notice of marking dated March 25,
1988, from the Customs office in Norfolk, Virginia, for failure
to mark the country of origin on each individual roll of paper.
You informed a member of my staff that the importer is presently
marking the country of origin on the label of each roll of paper
and that you requested this ruling to determine whether they
would have to continue to mark the country of origin on the
container of each roll of paper in the future.
ISSUE:
Whether printing paper imported by a wholly owned U.S.
subsidiary of the foreign supplier is exempt from the country of
origin marking requirements of 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, unless excepted, every article of
foreign origin imported into the U.S. 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 U.S. the
English name of the country of origin of the article. Part 134,
Customs Regulations (19 CFR Part 134), sets forth regulations
implementing the country of origin marking requirements and
exceptions of 19 U.S.C. 1304.
An exception from the marking requirement is authorized
pursuant to 19 U.S.C. 1304(a)(3)(H) where an ultimate purchaser,
by reason of the character of the article or by reason of the
circumstances of its importation, must necessarily know the
country of origin of the article even though it is not marked to
indicate its origin. This exception is one of the general
exceptions to marking requirements provided for in section
134.32(h), Customs Regulations (19 CFR 134.32(h)). In ruling
730243 (March 5, 1987), Customs required that the importer be the
ultimate purchaser of the imported article and have direct
contact with the foreign supplier to qualify for the 19 U.S.C.
1304 (a)(3)(H) exemption. The ultimate purchaser is defined in
section 134.1(d), Customs Regulations (19 CFR 134.1(d)), as the
"generally the last person in the U.S. who will receive the
article in the form in which it was imported."
In this case, the customer who orders the paper, receives
the roll of paper in its imported form and uses it to produce
magazines, brochures and catalogues, is the ultimate purchaser.
This customer deals directly with the importer, which as a wholly
owned subsidiary and sole U.S. representative of the foreign
supplier, is an agent of the foreign supplier. The customer
knows when they place an order with the importer exactly what
country and foreign supplier the printing paper originates from.
Furthermore, the customer is in direct contact with the agent of
the foreign supplier, which is a wholly owned subsidiary of the
foreign supplier. Direct contact with the agent of the foreign
supplier is sufficiently close to conclude that the ultimate
purchaser necessarily knows the source of the goods. Therefore,
in accordance with 19 U.S.C. 1304(a)(3)(H) and 19 CFR 134.32(h),
the printing paper is excepted from the country of origin marking
requirements of 19 U.S.C. 1304.
HOLDING:
Printing paper ordered by the ultimate purchaser directly
from an agent of the foreign supplier which is a wholly owned
subsidiary of the foreign supplier is excepted from the country
of origin marking requirements of 19 U.S.C. 1304.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch