MAR-2-05 CO:R:C:V 733804 RSD
Mr. Edward S. Pearson
Senior Vice President
Crystal Lake Manufacturing, Inc.
Post Office Box 159
Autaugaville, Alabama 36003
RE: Country of origin marking requirements for imported brooms
and mops; 19 CFR 134.35, 19 CFR 134.46
Dear Mr. Pearson:
This is in response to your letter dated September 21, 1990,
requesting a binding ruling regarding the country of origin
marking requirements of several types of brooms and one type of
mop.
FACTS:
Crystal Lake Manufacturing, Inc. imports broom heads and
handles from Italy, which it assembles in the U.S. and sells as
completed brooms. Two sizes of plastic angle broom heads and
plastic coated metal handles to fit the smaller sized head are
imported from Italy. The smaller sized broom heads are assembled
onto the metal handles or U.S.-made wooden handles. The large
broom heads are assembled only onto U.S.-made wooden handles. On
the sample brooms submitted, the broom heads, as well as the
handles, are marked clearly "Made in Italy." The markings are
molded permanently into the plastic outer surfaces of the broom
heads and on the end cap of the handle. The assembled brooms are
packaged with a disposable plastic sleeve covering the head,
which is marked with "Made in Italy," and Crystal Lake's logo and
U.S. address. The large angle broom head without handles has a
value of $1.84, but the completely assembled broom with a handle
is sold to retailers for $3.22.
You ask whether it is permissible to show the U.S.A. (rather
than Italy) as the country of origin on the plastic sleeve. If
not, you ask whether it is necessary to mark Italy on the sleeve
in addition to the marking on the articles themselves.
You state that in the future, Crystal Lake plans to import
detachable cotton mop heads from Pakistan. The heads will be
sold alone as refills, or assembled onto handles in the U.S. to
be sold as deck mops. The handles may be of domestic or Italian
origin. The cotton mop refill sells for $.73 but the complete
mop sells for $1.12 each. You ask whether it is permissible to
show Pakistan as the country of origin on only the refills and
the U.S.A. on the completed mops.
ISSUES:
What are the country of origin marking requirements for
imported broom heads assembled onto imported or domestic
handles?
What are the country of origin marking requirements for
imported mop heads which are sold as refills or assembled onto
imported or domestic handles?
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.
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; C.A.D. 104 (1940).
Part 134, Customs Regulations (19 CFR Part 134), implements
the country of origin marking requirements and the 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. In such circumstances the
U.S. manufacturer is the ultimate purchaser. The imported article
is excepted from individual marking and only the outermost
container is required to be marked. (see 19 CFR 134.35).
BROOMS
This case involves an assembly operation of placing broom
heads on handles. The marking requirements hinge on whether the
broom heads are substantially transformed in the U.S. by the
attachment of broom handles. The case of Uniroyal, Inc., v.
U.S., 542 F.Supp. 1025, 3 CIT 220 (1982), is instructive. That
case involved imported shoe uppers which were combined with
domestic soles in the U.S. The court ruled that imported uppers
were the "essence of the completed shoe," and therefore the
combining of the soles with the imported shoe uppers was not a
substantial transformation. The court described the imported
uppers as complete shoes except for an outsole, and that the
attachment of the outsole was a minor manufacturing or combining
process which leaves the identity of the shoe upper intact. This
case is similar to Uniroyal because the broom heads are not only
important to the finished product, but also are the very essence
of the finished product. While necessary for the broom to be
functional, the handle is clearly not the essential element of
the finished article. Moreover, the manufacturing process that
occurs in the U.S. is a minor assembly operation rather than a
substantial transformation. It does not appear to involve any
significant skill, time, or cost. See HQ 731748 (May 25, 1989).
Even if domestic handles are used, we find that the imported
broom heads are not substantially transformed by attaching them
to the handles. Consequently, the buyer of the fully assembled
broom would be the ultimate purchaser of the broom heads. In
order to comply with 19 U.S.C. 1304, the broom must be marked
with its country of origin, which would be the country where the
broom head was made, Italy.
You ask whether the plastic sleeve also has to be marked
with the country of origin if the article is marked. Pursuant of
section 134.24, Customs Regulations (19 CFR 134.24), a disposable
container is not required to be marked with the country of origin
of the article it contains if the article is so marked that the
country of origin is clearly visible without unpacking the
container. On the submitted samples the plastic sleeve obscures
the marking on the broom so that the ultimate purchaser would be
unable to see the marking prior to purchase. Accordingly, the
plastic sleeve must be marked with the country of origin. In
addition, the plastic sleeve contains a U.S. address on it, and
therefore, the requirements found at section 134.46, Customs
Regulations (19 CFR 134.46), would be triggered. This section
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
name of the country or locality in which the article was
manufactured or produced, appear 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.
Customs has ruled that in order to satisfy the close proximity
requirement, the country of origin marking must appear on the
same side(s) or surface(s) in which the name of the locality
other than the country of origin appears (HQ 708994, dated April
24, 1978). The purpose of 19 CFR 134.46 is to prevent the
possibility of misleading or deceiving the ultimate purchaser as
to the origin of the imported article. Therefore, if the U.S.
address appears on the plastic sleeve, then the name of the
country of origin, in this case, Italy, must also appear on the
same side of the plastic sleeve in letters of comparable size,
preceded by "Made in," "Product of," or other words of similar
meaning.
MOPS
Like the imported shoe uppers in Uniroyal and the imported
broom heads discussed in this ruling, the imported mop heads are
very essence of the finished product. Customs ruled in HQ 733632
(August 13, 1990), that the attachment of the handle to a mop
head does not result in a substantial transformation. If the mop
head is of foreign origin, it must be marked to indicate its
country of origin. In this case, the assembly of the handle onto
the mop head appears to be a relatively minor operation. Since
the mop head is made in Pakistan, we find that Pakistan would be
the country of origin of the assembled mop. It must be marked
with "Pakistan" to indicate to the ultimate purchaser, the buyer
of the assembled mops, the country of origin of the mops. The
mop heads which are sold as refills similarly must be marked to
indicate that Pakistan is the country of origin.
HOLDING:
The assembly of a broom head onto a handle is not a
substantial transformation. The country where the broom head is
made, Italy, is the country of origin for the completed broom
whether it is assembled with a foreign or U.S-made handle. The
broom must be marked with the country name Italy. If the plastic
sleeve packaging obscures the country of origin marking, then it
must also be marked with the country of origin. In addition, if
a U.S. address appears on the plastic sleeve, then the
requirements of 19 CFR 134.46 are triggered. The country of
origin marking must appear on the same side of the sleeve in
comparable size lettering as the U.S. address preceded by "Made
in," "Product of," or other words of similar meaning.
The assembly of mop heads onto handles is not a substantial
transformation. The country of origin of the assembled mop would
be the country where the mop head was made, Pakistan. The
assembled mop must marked so that the ultimate purchaser is
informed of the country of origin of the mop. The mop heads
which are sold as refills similarly must be marked to indicate
that Pakistan is the country of origin.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch