MAR-2-05 CO:R:V:C 733533 RSD
Mr. Adam C. Morrison
Adamo Imports
302 South County Road, Suite 103
Palm Beach, Florida 33480
RE: Country of origin marking requirements for battery installed
quartz analog wrist watches
Dear Mr. Morrison:
This is in response to your letter of February 12, 1990,
requesting a ruling on the proper country of origin marking
requirements for a battery installed quartz analog wrist watch.
A separate ruling concerning the tariff classification of
the watches was issued to you on June 12, 1990 (086562).
FACTS:
The sample watch submitted is a model HL 333 L, a lady's
battery-operated quartz analog wrist watch. The watch consists
of a no (0) jewel watch movement in a base metal watch case and a
plastic watch strap. The watch is a sports model with a plastic
turning-bezel such as used by skin divers and has an analog
display--a dial with hour, minute and seconds hands.
The watch is marked "MADE IN HONG KONG" on the back of the
metal watch case by means of a gummed label. There are no other
country of origin markings on the outside of the watch or on the
plastic strap. Internally, the watch movement is marked "Hulux
Ind Ltd" on the metal bridge adjacent to the stepping motor and
it is marked "no (0) jewel." The movement is marked "Hong Kong"
on the battery retaining clip. It is also marked "China
assemble" on the bridge adjacent to the stepping motor. The
invoices submitted with the letter, indicates that the watches
were imported from Hong Kong. However, it appears that the
watches were actually assembled in the China with parts made in
Hong Kong.
ISSUE:
What are the marking requirements for a battery-operated
quartz analog wrist watch?
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.
Congressional intent in enacting 19 U.S.C. 1304 was 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." United States v.
Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940).
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and exceptions of 19
U.S.C. 1304. Section 134.1(b), Customs Regulations (19 CFR
134.1(b)), defines "country of origin" as the country of
manufacture, production or growth of any article of foreign
origin entering the U.S. Further work or material added to an
article in another country must effect a substantial
transformation in order to render such other country the "country
of origin" within the meaning of the marking laws and
regulations. The case of U.S. v. Gibson-Thomsen Co., Inc., 27
C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used
in manufacture which results in an article having a name,
character, or use differing from that of the constituent article
will be considered substantially transformed.
Section 134.43(b), Customs Regulations (19 CFR 134.43(b)),
in conjunction with section 11.9, Customs Regulations (19 CFR
11.9), provides that watches must be marked in accordance with
the special marking requirements set forth in Chapter 91,
Additional U.S Note 4 of the Harmonized Tariff Schedule of the
United States (HTSUSA) (19 U.S.C. 1202). This note requires that
any watch movement, or case provided for in the subpart, whether
imported separately or attached to any article provided for in
the subpart, shall not be permitted to be entered unless
conspicuously and indelibly marked by cutting, die-sinking,
engraving, or stamping or mold-marking (either indented or
raised), as specified in the provisions of this note. This
language is mandatory. The Customs Service has no authority for
granting exceptions to the special marking requirements for
watches. (see HQ 726711, October 22, 1984).
Section (a) of Note 4 requires that watch movements shall be
marked on one or more of the bridges or top plates to show the
name of the country of manufacture; the name of the manufacturer
or purchaser; and, in words, the number of jewels, if any serving
a mechanical purpose as frictional bearings. Section (c) of Note
4 requires that watch cases shall be marked on the inside or
outside of the back cover to show the name of the country of
manufacture, and the name of the manufacturer or purchaser. The
country of manufacture in these requirements refers to where the
movements, and cases, are manufactured rather than where the
watch was made.
For country of origin marking purposes under 19 U.S.C. 1304,
Customs considers the country of origin of watches to be the
country of manufacture of the watch movements. See HQ 731546,
October 27, 1988. Customs has also ruled that when unassembled
parts of a watch movement from one country are assembled in a
second country, the country of assembly is the country of origin
for marking purposes under 19 U.S.C. 1304. See HQ 708386, May 2,
1978. In this case, it appears that parts from Hong Kong are
sent to China where they are assembled into a completed watch
movement. If so, the country of origin of the watch in this case
is China and not Hong Kong. The sample watch submitted,
therefore, is not correctly marked, and must be marked to
indicate that the country of origin is China. In order to be
conspicous this marking must be on the face of the dial or on the
outside surface of the back cover. HQ 731546, October 27, 1988;
714322, December 12, 1980. The markings "China Movement" or China
Mov't" are also acceptable. HQ 718311 January 26, 1982. We also
note that since the watch is sold to the ultimate purchaser in a
package, that if the country of origin marking on the watch is
not clearly visible on the watch when it is packaged, the
container must also be marked to indicate the country of origin
of the watch. Customs has also previously ruled that watch
straps must be marked with its country of origin. HQ 731546
October 27, 1988.
The marking "Hulux Ind Ltd" on the metal bridge adjacent to
the stepping motor and marking "no (0) jewel" satisfies the
special marking requirements of Chapter 91, U.S. note 4 (a)(ii)
and 4 (a)(iii). However, since the watch case has no markings on
either the inside or the outside the stainless steel back, it is
not legally marked with respect to U.S. Note 4 (c)(i) and 4
(c)(ii) in Chapter 91.
HOLDING:
The country of origin of the watch is China, the country
where the watch movement is assembled. The watch must be marked
on either the face of the dial or on the outside of the back of
its watch case with the country name China to satisfy the
requirements of 19 U.S.C. 1304. The watch strap must also be
marked with its country of origin.
The marking "Hulux Ind Ltd" on the metal bridge adjacent to
the stepping motor and "no (0) jewel" satisfies the special
marking requirements of Chapter 91, U.S. Note 4 (a)(ii) and 4
(a)(iii). However, because the watch case is not marked it is
not legally marked in accordance U.S. Note 4 (c)(i) and 4 (c)(ii)
in Chapter 91. The watch case must be marked on inside or
outside of the back cover to indicate the name of the country of
manufacture, and the name of the manufacturer or purchaser. This
marking must be done by one of the methods indicated in the U.S.
Note, and a gummed label is unacceptable.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch
cc: Assistant Area Director
NIS (086562)