MAR 2-05 CO:R:C:V 732900 pmh

Mr. James S. O'Kelly
Barnes, Richardson & Colburn
475 Park Avenue South
New York, N.Y. 10016

RE: Country of origin marking of compact discs

Dear Mr. O'Kelly:

This is in response to your letter of November 17, 1989, on behalf of your client, Disque Americ, Inc., of Drummondville, Quebec, Canada, requesting a ruling on the proper country of origin marking requirements for imported compact discs. This ruling only applies to future imports. We regret the delay in responding.

FACTS:

According to your letter, your client manufactures compact discs for various U.S. distributors. Each U.S. customer distributes the discs under its own private label and supplies its own retail packaging in which the discs will be distributed in the U.S. The retail package identifies the name and domestic address of the U.S. distributor, preceded by words such as "Distributed by," "Product of," "Manufactured by," or "Manufactured for." Your client affixes an adhesive label bearing the words "Made in Canada" to the retail package in close proximity to the U.S. customer's name and domestic address. In addition, the label on each individual disc bears the words "Made in Canada."

You have submitted several samples of discs in their retail packaging. Three of these are in blister packs in which the label on the individual disc is visible. One disc is packaged in a carton encased in clear plastic wrap; the disc is not visible. The disc in The retail carton bears the words "Distributed by the Special Music Company" and the domestic address of that company on the back panel of the carton. An adhesive label bearing the words "Made in Canada" is affixed to the carton in close proximity to the name and address of the U.S. company and under the plastic wrap. The three discs in blister packs each bear the

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name and address of a U.S. distributor on the back panel of the blister pack. One such name and address is preceded by the words "A Product of," another by the words "Manufactured by," and another by the words "Manufactured and Distributed by." The adhesive label bearing the words "Made in Canada" is affixed to each package in close proximity to the name and address of the U.S. distributor and inside the plastic of the blister pack. In addition, each of the discs is visible through a window in the blister pack and the label on each disc bears the words "Made in Canada."

ISSUE:

Whether the country of origin marking on each of the submitted sample compact discs satisfies the 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 its 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), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.46, Customs Regulations (19 CFR 134.46), requires that when the name of any city or locality in the U.S., or the name of any foreign country or locality other than 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 as to the country of origin.

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In this case, the adhesive label bearing the name of the country of origin is, itself, conspicuously and permanently affixed to each retail package. We find that the retail package which consists of a carton sealed in plastic wrap and bearing the words "Distributed by the Special Music Company" clearly indicates that the compact disc is a product of Canada. The packaging is in compliance with the requirements of 19 U.S.C. 1304 and 19 CFR 134.46. However, with regard to the three compact discs in blister packs, it is our opinion that an ultimate purchaser would be confused as to the country of origin of the discs. Although these three packages also bear the "Made in Canada" adhesive label, the words "A Product of," "Manufactured by," and "Manufactured and Distributed by," which alternatively precede the name and address of the U.S. distributor on each package, are extremely misleading. This is particularly so due to the fact that these same words are so commonly used to indicate origin. In fact, as noted above, 19 CFR 134.46 specifically suggests using the words "A Product of," to identify the country of origin. Customs has long held the words "Manufactured by" to be "words of similar meaning" as "Made in" or "Product of." In addition, we find that the words "Made in Canada" which appear on the label of the disc in lettering 1/16" are not sufficient to remedy the confusing and misleading marking on the retail package.

HOLDING:

Compact discs that are sold in packages bearing the name and address of a U.S. company preceded by the words "Distributed by" and bearing an adhesive label "Made in Canada" that is conspicuous and in close proximity to such name and address, are in compliance with 19 U.S.C. 1304 and 19 CFR 134.46. Compact discs that are sold in blister packs bearing the name and address of a U.S. company preceded by the words "A Product of," "Manufactured by," or Manufactured and distributed by," are not in compliance with 19 U.S.C. 1304. Such marking is misleading and confusing, regardless of the fact that an adhesive label "Made in Canada" appears in close proximity to the name and address of the U.S. company.

Sincerely,

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