MAR-2-05 CO:R:V:C 734119 RSD

Rob Shouldice, President
Shouldice Cement Products Limited
Shallow Lake, Ontario NOH 2KO

RE: Country of origin marking requirements for designer stone and designer brick used on the outside of buildings, containers, 19 CFR 134.32(d), 19 U.S.C. 1304(a)(3)(D)

Dear Mr. Shouldice:

This is in response to your letter dated March 26, 1991, requesting a binding ruling on the country of origin marking requirements for designer stones and designer bricks used on the outside of buildings. A sample of a clear cellophane bag used to package the stones was also received.

FACTS:

Your company manufactures concrete masonry units for load bearing and veneer applications. The veneer products you manufacture are called designer stones and designer bricks. They are used on the outside of residential, commercial and industrial buildings. The stones and bricks are used to surface the walls of the buildings. You indicate that you are interested in importing these products into the U.S. The products are packaged on 40"x48" inch wooden pallets and secured by a 6 mil poly bag, which is heat shrunk tight on the side of the cube. The stones are wrapped in the poly bag in order to protect them from damage. The bag is marked in several places with "MADE IN CANADA." You indicate that the bricks and stones will used only for new construction projects because they are not easily attached to existing structures. You further indicate that the designer stones and designer bricks will be shipped directly to the end user who will cut the plastic wrap to commence installation on the project.

ISSUE:

Are the country of origin marking requirements of 19 U.S.C. 1304 for the designer stones and designer bricks satisfied by marking the outside of the poly bags, in which stones are wrapped, with the country of origin?

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 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain.

An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if the ultimate purchaser can tell the country of origin of the bricks and stones by viewing the country of origin marking on the container in which they are imported, the individual bricks and stones themselves would be excepted from marking under this provision. Therefore, it is necessary to ascertain who is the ultimate purchasers of the bricks and stones.

Section 134.1(d), Customs Regulations, (19 CFR 134.1(d)), defines the ultimate purchaser as the generally the last person in the U.S. who will receive the article in the form in which it was imported. In this case, construction companies will use the designer bricks and stones in the construction of new homes and buildings. You indicated that the bricks and stones are used only in new construction projects because it would very difficult to attach them to existing structures. Accordingly, the ultimate purchasers of the bricks and stones are the construction companies who use them to build new buildings.

In 731555, July 18, 1988, Customs has previously ruled that metal straps with plastic shrink wrap used to secure refractory bricks were containers for purposes of 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d). Similarly, in this case we find that the plastic poly bags surrounding the stones and bricks which are heat shrunk onto the wooden pallets constitute containers for purposes of these provisions. Because you state that you ship the bricks and stones directly to the ultimate purchasers in these containers and because the containers are conspicuously marked "MADE IN CANADA", we find that marking the bag would reasonably indicate the country of origin to the ultimate purchaser of the stones and bricks.

HOLDING:

The ultimate purchasers of the designer bricks and stones are the construction companies who use the bricks and stones to construct homes and other buildings. The plastic poly bag used to wrap the bricks and stones is a container and the sample bag is conspicuously marked to indicate the country of origin of the bricks and stones. The individual bricks and stones are excepted from marking pursuant 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.32(d), if the bricks and stones are imported in properly marked containers and the district director at the port of entry is satisfied that they will reach the ultimate purchasers in the original marked unopened containers in which they are imported.

Sincerely,

John Durant, Director
Commercial Rulings Division