Mar-2-05 CO:R:C:V 734182 AT
Harold I. Loring, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th Street
New York, New York 10017
RE: Country of origin marking of imported string light sets
repackaged in the U.S.; assembly of string sets; substantial
transformation; conspicuous place; close proximity; name of
U.S. locality; 19 CFR 134.35; 19 CFR 134.34; 19 CFR 134.46
Dear Mr. Loring:
This is in response to your letters dated May 20 and August
6, 1991, and January 13 and October 15, 1992, on behalf of Noma
International, Inc. (Noma), requesting a ruling on the country of
origin marking of imported string light sets which are to be
repackaged in the U.S. from foreign and/or domestic components
into Noma's "25 Outdoor Lite Set". A sample of the string light
set, country of origin marking labels and the container in which
the string light sets are to be repackaged were submitted with
your letters. You have also requested a ruling with respect to
the making of the light strings assembled in China from entirely
Taiwanese components.
FACTS:
You state that Noma imports light bulbs and/or light strings
to be repackaged in unsealed containers in the U.S. to be sold at
retail stores. Each set consists of a string (wire-socket-plug
assembly) and 25 lightbulbs which are packaged in a small
cardboard box. You also state that although some of the strings
will be made in the U.S., others will be made in Canada, or
assembled in Mexico in a HTS 9802.00.80 operation or assembled in
China from Taiwanese components. The lightbulbs will be sourced
from either China, Taiwan, Thailand or Indonesia.
With respect to the string sets which are to be assembled in
Mexico or China you claim that each string will be marked by an
adhesive pinch tag measuring approximately 3 1/4 inches in
length. The pinch tags will be marked "String Set Made in
Country of Origin" in black lettering approximately 5 points (a
point is a unit of measurement equal to 0.01384 inch or nearly
1/72 in., and all type sizes are multiples of this unit).
However, the string sets which are made in Canada will be marked
"Made in Canada" on the green receptor plug. In your letter
dated October 15, 1992, you state that although the sample string
set submitted has a UL label attached to it printed with the
words "Printed in U.S.A., Noma has advised you that they will not
use any UL labels indicating "Printed in U.S.A. on the imported
light string sets.
With respect to the light bulbs you state that each light
bulb will be individually marked with the country of origin on
the threaded portion of the bulb. Examination of the sample
light bulbs indicates that each bulb is marked "Taiwan" on the
threaded portion. Also the light bulbs are packaged in a small
cardboard box which is marked on the front panel with the words
"Made in Taiwan Rep. of China" in red lettering approximately 18
points. You also state that each cardboard box containing the 25
light bulbs for each completed "25 Outdoor Lite Set" will be
marked in this same manner.
The retail cardboard box is marked with Noma's address
"Forest Park, Illinois 60130" on the bottom panel near the
lefthand corner in black lettering approximately 7 point. You
state that Noma proposes to mark the retail box with the country
of origin marking "See Lite String and Bulbs for Country of
Origin" in close proximity and in a comparable size to their
"Forest Park, Illinois" address. A sample of the proposed
marking was submitted for review. Product information such as
care, use and safety instructions as well as how to repair a
blown fuse also appears on the bottom panel of the box. A color
illustration of the light string set appears on the front panel
along with the words "25 Outdoor Lite Set; Over 25' Long Overload
Protection For Added Safety".
You state that Noma's proposed marking of the repackaged
retail sets is necessitated by the fact that Noma sources light
strings and bulbs from several different countries and repackages
them in three separate U.S. locations. With four separate
sources for the strings and four separate sources for the bulbs,
there are at least sixteen different origin combinations. You
also state that it would be an extreme hardship for Noma to use
different retail boxes for every possible situation.
Furthermore, you state that an ultimate purchaser would easily
find the proposed marking since it will be located on the same
panel as the product information. Based on these claims, you
assert that marking the retail boxes "See Lite String and Bulbs
for Country of Origin" is the most efficient way to mark the
country of origin of the individual repackaged sets.
ISSUES:
What is the country of origin of the light strings (wire,
socket, plug), assembled in China from entirely Taiwanese
components?
Whether the proposed country of origin marking "See Lite
String and Bulbs for Country of Origin" on the bottom panel of
the retail box containing the lite sets satisfies the marking
requirements of 19 U.S.C. 1304 and 19 CFR Part 134, if the light
strings and bulbs are individually marked in the manner described
above?
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, C.A.D. 104 (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(d), Customs Regulations (19 CFR
134.1(d)) defines ultimate purchaser as "generally the last
person in the U.S. who will receive the article in the form in
which it was imported." The definition then gives examples of
who might be the ultimate purchaser if the imported article is
used in the manufacture, if the imported article is sold at
retail in its imported form and if an imported article is
distributed as a gift. If an imported article is to be sold at
retail in its imported form, the purchaser at retail is the
ultimate purchaser. In this case, the ultimate purchaser of the
outdoor lite set is the consumer who purchases the product at
retail.
Country Of Origin Of Light Strings Assembled In China
The country of origin of the light strings assembled in
China from entirely Taiwanese components rests upon whether the
Taiwanese components are substantially transformed in China as a
result of the assembly operation. For country of origin marking
purposes, a substantial transformation occurs when articles lose
their identity and become new articles having a new name,
character or use. In determining whether the combining of parts
or materials constitutes a substantial transformation, the issue
is the extent of operations performed and whether the parts lose
their identity and become an integral part of the new article.
Belcrest Linen v. United States, 6 CIT 204, 573 F.Supp. 1149
(1983), aff'd, 2 Fed.Cir. 105, 741 F.2d 1368 (1984). Assembly
operations which are minimal or simple, as opposed to complex or
meaningful, will generally not result in a substantial
transformation. See, C.S.D.s 80-111, 89-110, 89-129, 90-51.
In this case we find that the assembly operation performed
in China does not substantially transform the Taiwanese
components. The assembly operation is very simple and does not
require a great deal of skill or time. The assembly of the
lightbulb socket only involves snapping the base of the socket
into the wire. The formation of the electrical contacts between
the socket and the wire is made by this simple snapping
operation. Furthermore, as indicated in your August 6, 1991,
letter, the assembly process only takes 20 seconds and no highly
skilled workers are necessary. Also, you state that the
injection molding process of the sockets and plugs performed in
Taiwan is much more complex than the assembly operation. The
Taiwanese components do not change in name, character or use as a
result of the assembly operation because they still remain a
wire, socket and plug after being assembled, although they are
now essential components of a light string. Accordingly, the
country of origin of the light strings is Taiwan.
Assuming That The Light Strings And Bulbs Are Properly Marked In
The Manner Described Above, Are The Containers Properly Marked?
In determining whether the marking is acceptable, Customs
will take into account the presence of words or symbols on an
article which may mislead the ultimate purchaser as to the
country of origin. Consequently, if the words "United States,"
or "America," the letters "U.S.A.," any variation of such words
or letters, or the name of any city or locality other than the
country of origin appear on the imported article, special marking
requirements are triggered.
Section 134.46, Customs Regulations (19 CFR 134.46),
requires that when the name or city 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 actual origin of the imported goods.
The application of these special marking requirements as set
forth in section 134.46 is triggered by the presence of the words
"Forest Park, Illinois" printed on the bottom panel of the retail
box. Accordingly, the name of the actual country of origin of
the light string set must appear "in close proximity" to the U.S.
reference and in lettering of at least a comparable size.
Therefore, the critical issue present in this case is whether the
proposed marking "See Light String and Bulbs for Country of
Origin" to be placed on the same panel as the words "Forest Park,
Illinois" in a comparable size satisfies the country of origin
marking requirements of 19 CFR 134.46.
Customs has previously approved country of origin markings
which do not designate a specific country of origin in close
proximity to the U.S. reference but instead directs the ultimate
purchaser to a conspicuous location where the country of origin
can be found on the article. For example, in HQ 732374 (July 7,
1989), Customs determined that the language "Refer to neck label
for country of origin" printed on the outside of a poly bag
containing men's dress shirts immediately beneath a U.S. address,
was acceptable if the neck label displaying the name of the
country of origin in each shirt was easily visible to the
ultimate purchaser. See also HQ 732099 (November 3, 1989)
(marking "See Bulb For Country of Origin" was acceptable where
the bulbs were individually marked and their containers were
unsealed; HQ 734285 (April 13, 1992), published as C.S.D. 92-33,
26 Cust. B. & Dec. 54 (marking "See Part Number Label For Country
of Origin" acceptable where essential information such as the
part number and size were printed and easily visible on the
label).
Similarly in this case, we find that the proposed method of
marking satisfies the requirements of 19 CFR 134.46. The words
"See Light String and Bulbs For Country of Origin" appears in
close proximity and in a comparable size to the U.S. reference
and is easy to see. Also, an ultimate purchaser would be
expected to open the unsealed retail container to examine its
contents, and therefore would easily find the country of origin
marking for the light string and bulbs which are to be marked in
the manner described above. We are satisfied that the light
string and bulbs can be easily taken out of the retail container
by the ultimate purchaser and the country of origin marking on
each article as described above, is conspicuous and can be easily
found upon a casual examination. Moreover, the marking "See
Light String and Bulbs For Country of Origin" is printed at a
location where an ultimate purchaser would expect to find such
marking since other essential information such as care, use and
safety instructions is located on the same panel. We further
find that the proposed country of origin marking is permanent
because the marking will be printed on the bottom panel.
HOLDING:
The country of origin of light strings assembled in China
from entirely Taiwanese components (wire-socket-plug) is Taiwan.
Assuming the light strings and bulbs will be packaged and
individually marked with the country of origin in the manner
described, marking the retail box, "See Light String and Bulbs
For Country of Origin" as described above satisfies the
requirements of 19 U.S.C. 1304 and 19 CFR Part 134.
Sincerely,
John Durant, Director
Commercial Rulings Division