MAR-2-05 CO:R:C:V 732575 KG
Beth C. Ring, Esq.
Sandler, Travis & Rosenberg. P.A.
505 Park Avenue
New York, N.Y. 10022-1106
RE: Country of origin marking of imported videocassette cartons
Dear Ms. Ring:
This is in response to your letter of July 5, 1989,
requesting a country of origin ruling regarding imported
videocassette cartons. We regret the delay in responding to your
inquiry.
FACTS:
Your client proposes to import empty cardboard videocassette
containers from Canada. A U.S. videocassette producer will fill
the cartons with videocassettes. The containers will be pre-
glued and shipped flat.
ISSUE:
Whether the imported videocassette cartons must be
individually marked to indicate their country of origin.
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. The Court of
International Trade stated in Koru North America v. United
States, 701 F.Supp. 229, 12 CIT (CIT 1988), that: "In
ascertaining what constitutes the country of origin under the
marking statute, a court must look at the sense in which the term
is used in the statute, giving reference to the purpose of the
particular legislation involved. The purpose of the marking
statute is outlined in United States v. Friedlaender & Co., 27
CCPA 297 at 302, C.A.D. 104 (1940), where the court stated that:
"Congress intended 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."
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. Section 134.24(c)(1), Customs Regulations (19 CFR
134.24(c)(1)), provides that when disposable containers or
holders are imported by persons or firms who fill or package them
with various products which they sell, these persons or firms are
the ultimate purchasers of these containers or holders and they
may be excepted from individual marking pursuant to 19 U.S.C.
1304(a)(3)(D). The outside wrappings or packages containing the
containers shall be clearly marked to indicate the country of
origin.
In HQ 731863 (February 14, 1990), cosmetic compacts were
held to be disposable containers and pursuant to 19 CFR
134.24(c)(1), the compacts were not required to be individually
marked. This ruling modified HQ 722170 (July 18, 1983), HQ
722547 (August 30, 1983), and HQ 723905 (March 20, 1984), in
which Customs ruled that plastic cosmetic compacts were required
to be individually marked. In HQ 723905 Customs affirmed its
view that plastic compacts imported empty to be filled in the
U.S. with U.S. made cosmetics were not disposable containers
subject to 19 CFR 134.24(c)(1) because compacts are not merely
containers, but rather are substantial, functional articles in
their own right. As support for this position, Customs cited
rulings classifying compacts as "flat goods" under item 706.60
(706.61) of the Tariff Schedules of the United States (TSUS),
rather than "containers ... chiefly used for the packing,
transporting or marketing of merchandise" under item 772.70,
TSUS.
Customs ruled in HQ 731863 that currently it does not regard
the empty plastic cosmetic compact as a substantial, functional
article in its own right. Further, Customs considered the
classification of the sample under the Harmonized Tariff Schedule
of the United States ("HTSUS") which superseded and replaced the
TSUS. Plastic cosmetic compacts are now classified under
subheading 3923.10.0000, HTSUS, which provides for plastic
articles for the conveyance or packing of goods, of plastics,
boxes, cases, crates and similar articles. See HQ 084714 (July
19, 1989). Since plastic compacts are now classified as
containers, the justification for Customs prior position that
cosmetic compacts are not disposable containers was considered no
longer valid.
This case is similar to HQ 731863. Videocassette
containers are not designed for or capable of reuse after the
contents have been consumed. Like the cosmetic compacts, the
videocassette containers are used to store the product which was
purchased and are discarded at the end of the life of the
product. These containers are sold at retail with their contents
and are otherwise not available on the retail market. These
containers are disposable containers within the meaning of 19 CFR
134.24(c)(1) and only the outside wrapping or packaging of the
containers must be marked to indicate their country of origin.
You noted in your letter that Customs had previously ruled
in HQ 729224 (January 14, 1987), that imported record jackets
were not disposable containers but rather separate and distinct
articles of commerce with their own practical and commercial
uses. This was in accordance with HQ 702026 (July 6, 1973),
which concluded that a record album was considered a separate
article from the album cover for country of origin marking
purposes. The conclusion reached in HQ 729224 was based in part
on the classification of the record jackets under the TSUS. As
you noted, record jackets are now classified under the HTSUS with
other containers. Further, HQ 729224 cited to the ruling on
cosmetic compacts in support of its position. This ruling on
cosmetic compacts, HQ 723905 (March 20, 1984), has been overruled
by HQ 731863 (February 14, 1990). For these reasons, HQ 729224
is no longer in conformity with Customs position on disposable
containers and it is hereby overruled. HQ 702026 (July 6, 1973)
and HQ 732426 (April 9, 1990) regarding Any rulings that are
inconsistent with this ruling are modified accordingly.
HOLDING:
The imported videocassette containers are disposable
containers and in accordance with 19 CFR 134.24(c)(1), only the
outside wrappings or packages containing the containers must be
marked with the country of origin of the videocassette
containers.
Sincerely,
John Durant
Director,
Commercial Rulings Division