MAR-2-05 CO:R:C:V 732652 EAB

Rita E. Daly, Corporate Director of Transportation
EKCO Housewares, Inc.
9234 West Belmont Avenue
Franklin Park, IL 60131

Re: Country of origin marking of steel bakeware

Dear Ms. Daly:

This is in response to your letter dated August 14, 1989, in which you request a ruling on the acceptable marking of steel bakeware that is made in Canada or the U.S. We regret the delay in responding.

FACTS:

Your company manufactures steel bakeware in the U.S. The majority of the bakeware manufactured in the U.S. will be sold in the U.S. The remainder will be exported to Canada for sale. You request a ruling on the marking requirements of these products. Articles manufactured entirely in the U.S. are not subject to the requirements of 19 U.S.C. 1304, the marking statute enforced by the Customs Service. We suggest that you contact the Federal Trade Commission, 601 Pennsylvania Avenue, N.W., Washington, DC 20580 about the marking of these U.S. origin articles.

You also ask about the country of origin marking and other labelling requirements of bakeware manufactured in Canada and subjected to further manufacturing processes in the U.S. Specifically, each item of steel bakeware manufactured in Canada will be die-stamped "Baker's Secret", "Baker's Best" and "Ekco Canada". The bakeware will be silicone coated, carded and packaged in the U.S. To comply with country of origin marking requirements, you will label each fully manufactured article "Made by Ekco Canada, Printed in U.S.A." You have submitted a sample cake pan for examination. However, it is not packaged.

ISSUE:

What are the country of origin marking requirements of steel bakeware manufactured in Canada and subjected to further manufacturing processes in the U.S.?

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 (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 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 primary purpose of the country of origin statute 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 the product, if such marking should influence his will." United States v. Friedlaender & Co., 27 CCPA 297 (1940); National Juice Products Association v. United States, 10 CIT 48, 628 F.Supp. 978 (1986).

Part 134, Customs Regulations (19 CFR Part 134), implements the statutory country of origin marking requirements and excep- tions. Section 134.41(a), Customs Regulations (19 CFR 134.41(a)), states that as a general rule, marking requirements are best met by marking worked into the article at the time of manufacture. For example, unless excepted, it is suggested that the country of origin on metal articles be die sunk, molded in or etched.

We note that the die-cast markings which are on the submitted sample are conspicuous, legible and permanent. If the name of the country of origin appears on all the bakeware in a similar fashion, it would satisfy the requirements of 19 U.S.C. 1304. However, your suggested wording, "Ekco Canada", is not in compliance with 19 U.S.C. 1304 or 19 CFR Part 134. Ekco Canada is the name of the manufacturer and not the country of origin of the article. While generally it is not necessary to mark an article, "Made in [Country]", 19 U.S.C. 1304 and 19 CFR 134.11 require the English name of the country of origin to appear on the article. Merely identifying the manufacturer is not in compliance. Please also note that if the country of origin marking on the article is obscured by a paper label affixed in the U.S., the article would have to be re-marked (on the paper label or in some other conspicuous place).

Although certain articles which are to be further processed in the U.S. are excepted from marking, the exceptions do not apply in this case. As provided in 19 U.S.C. 1304(a)(3)(G) and 19 CFR 134.32(g), articles to be processed in the U.S. by the importer otherwise than for the purpose of concealing the origin of such articles and in such manner that any mark contemplated by this part would necessarily be obliterated, destroyed, or permanently concealed, may be excepted from marking. Customs

does not find this exception applicable in this case for the reason that the die-stamping that you have already elected is not necessarily nor in fact obliterated by the silicone coating of the articles in the U.S.

As provided in 19 CFR 134.35, the manufacturer or processor in the U.S. who converts or combines an imported article into a new or different article having a new name, character or use will be considered the ultimate purchaser of the imported article, and the imported article shall be excepted from marking. However, the outermost container of the imported article shall be marked. In this case, we find that your company is not the ultimate purchaser of the imported bakeware. The silicone coating and carding are minor finishing operations, not amounting to a substantial transformation of the bakeware into a new and different article, having a new name, character or use. Both the imported article and the finished article have the same name and use, and the essential character of the articles is identical.

In conclusion, we find under the facts presented that the imported unfinished bakeware must be marked on the article with the English name of its country of origin, which is Canada. In the alternative, the container or packaging can be marked if Customs officers at the port of entry are satisfied that the articles will reach the ultimate purchaser in the original unopened marked containers.

HOLDING:

Unfinished steel bakeware is not excepted from the marking requirements of foreign articles imported into the U.S. unless Customs officer at the port of entry are satisfied that the articles will reach the ultimate purchaser in the original unopened marked containers. The marking "Ekco Canada" is not an acceptable marking under 19 U.S.C. 1304.

Sincerely,

Marvin M. Amernick, Chief
Value, Special Programs and
Admissibility Branch