MAR-2-05 CO:R:C:V 732810 KG

Eileen T. Romito
Department 733X
Sears Tower, BSC 19-45
Chicago, Illinois 60684

RE: Country of origin marking of imported handbags

Dear Ms. Romito:

This is in further response to your letter of June 12, 1989, requesting a tariff classification and country of origin ruling regarding imported ladies' leather handbags. You have already received HQ #084844 (October 10, 1989), the tariff classification ruling you requested. We regret the delay in responding to your inquiry.

FACTS:

Three styles of imported ladies' leather handbags are imported from Hong Kong. Samples of each were submitted for examination. The first handbag, marked as style 3331 ("Style one"), has a zipper closing and two outer pockets. It is marked with a fabric label indicating the country of origin inside the bag attached at the seam about 3 inches down from the top of the handbag. The lettering is about 1/8 inch in height in red.

The second handbag, marked as style 3327 ("Style two"), has a zipper closing and one outer pocket. It is marked with a fabric label indicating the country of origin inside the bag, attached at the seam about 1 1/2 inches down from the top of the handbag. The lettering is about 1/8 inch in height in red.

The third handbag, marked as style 3336 ("Style three"), has two pouches. It is marked with a fabric label indicating the country of origin inside the bag attached at the seam about 3 inches down from the top of the handbag. The lettering is about 1/8 inch in height in red.

ISSUE:

Whether the marking of the three styles of imported ladies' handbags complies with the country of origin marking requirements of section 304 of the Tariff Act of 1930, as amended.

LAW AND ANALYSIS:

You asked the proper method of marking the handbags concerning the material composition. Customs does not have jurisdiction over the material composition of products; the Federal Trade Commission should be contacted for information concerning the marking of the material composition.

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, 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 134.41, Customs Regulations (19 CFR 134.41), requires that the ultimate purchaser in the U.S. be able to find the marking easily and read it without strain. Customs determined in Circular MAR-2-RM (January 16, 1970), that handbags should be marked by means of a fabric label sewn to the lining in a location where the label can be easily seen when the handbag is opened. The issue presented is whether the three styles submitted are marked in a conspicuous location where the label can be easily seen when the handbag is opened.

In ruling letter HQ 731534 (December 2, 1988), nylon sports bags marked with a fabric label sewn deep inside the bag were held to be not conspicuous as required by 19 CFR 134.41. Customs ruled in HQ 731727 (June 16, 1989) that a batting glove containing a country of origin mark deep inside the glove was not conspicuous.

Based upon a visual examination of the bags, we find that the placement of the label in styles one and three deep inside the bag would not allow the ultimate purchaser to find the mark easily upon opening the handbag and read it without strain. On the other hand, style two, in which the label is located about 1 1/2 inches from the top of the handbag, does allow the ultimate purchaser to find the mark easily upon opening the handbag and therefore, satisfies the requirements of 19 CFR 134.41 and Circular MAR-2-RM.

All of the styles have a hangtag attached which has the New York address of the importer on both the front and back of the hangtag. Section 134.46, Customs Regulations (19 CFR 134.46), requires that when the name of any city or locality in the U.S., other than the name of the country or locality in which the article was manufactured or produced, appears on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by "Made in,""Product of," or other words of similar meaning. The purpose of this section is to prevent the possibility of misleading or deceiving the ultimate purchaser.

In this case, we believe that the hangtag with a New York address on both sides of the tag could mislead the ultimate purchaser as to the country of origin of the imported handbag. Therefore, the country of origin of the handbags must also be marked on the hangtag in accordance with the provisions of 19 CFR 134.46. In the alternative, the New York address may be removed from the hangtag or the hangtag itself may be removed from the bag.

HOLDING:

Styles one and three, described above, do not satisfy the country of origin marking requirements because the marking is not conspicuously located. Style two, described above, does satisfy the country of origin marking requirements because the marking is conspicuously located, legible and prominent. However, the country of origin of the handbags must also be marked on the hangtags unless the New York address is removed from the hangtag or the hangtag is removed from the bag.

Sincerely,

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

cc: Assistant Area Director NIS
084844