MAR-2-05 CO:R:C:V: 733096 EAB

Frederick L. Ikenson, Esquire
1621 New Hampshire Avenue, N.W.
Washington, DC 20009

Re: Country of origin marking of color television chassis and their containers

Dear Mr. Ikenson:

This is in reply to your letter of January 26, 1990, requesting clarification of our Headquarters Ruling Letter HQ 732170 dated January 5, 1990.

FACTS:

In HQ 732170, Customs determined that your client was the ultimate purchaser of certain imported television chassis because of the further manufacturing operations performed in the U.S. Customs further found that the imported articles are excepted from marking so long as the containers were marked with the country of origin. You now request an exception from country of origin marking for the outermost containers of the articles that were the subject of HQ 732170, because the ultimate purchaser "necessarily knows the country of origin of the imported articles" within the meaning of 19 U.S.C. 1304(a)(3)(H). For purposes of this supplemental ruling, we incorporate by reference thereto the facts of HQ 732170. The essential fact is that the importer/ultimate purchaser orders the articles directly from the foreign manufacturer, which is its wholly owned subsidiary.

ISSUE:

Whether the imported television chassis and their containers are excepted from marking pursuant to 19 U.S.C. 1304(a)(3)(H).

LAW AND ANALYSIS:

As provided in 19 U.S.C. 1304(a)(3)(H), implemented in 19 CFR 134.32(h), an article is excepted from individual country of origin marking where the ultimate purchaser, by reason of the character of such article or by reason of the circumstances of its importation, must necessarily know the country of origin of such article even though it is not marked to indicate its origin.

As provided in 19 U.S.C. 1304(b), if articles are excepted from marking requirements under any of 19 U.S.C. 1304(a)(3)(F)- (H), their usual containers shall not be subject to marking. This statutory provision is implemented in 19 CFR 134.22(d)(1).

In C.S.D. 80-114 (Headquarters Ruling Letter HQ 711081 dated September 26, 1979), Customs found that where the importer owned an interest in the company from which it imported the articles, and ordered the articles directly from that company, the exception under 19 U.S.C. 1304(a)(3)(H), as implemented in 19 CFR 134.32(h), applies.

HOLDING:

Customs finds that in this case, where the importer/ultimate purchaser is the parent company of the foreign manufacturer, and the importer directly orders only from its subsidiary, the articles are excepted from individual marking pursuant to 19 CFR 134.32(h). Customs further finds that the containers of such imported articles are excepted from individual country of origin marking, as provided in 19 CFR 134.22(d)(1).

Documentation to this effect may be required by Customs officials at the port of entry.

Sincerely,

John Durant, Director
Commercial Rulings Division