MAR-2-05 CO:R:C:V 734202 RSD

Mr. Mark J. Milne
Director, Import/Export Administration
Air Express International
Hangar 5, JFK International Airport
Jamaica, New York 11430

RE: Country of origin marking for plastic promotional pens, conspicuous, legible, give-aways, ultimate purchaser; 19 CFR 134.41; HQ 733940

Dear Mr. Milne:

This is in response to your letter to the Customs Information Exchange in New York, dated November 5, 1990, on behalf of your client, European Promotion, requesting a ruling on the country of origin marking of plastic promotional pens. Your letter was forwarded to Customs Headquarters for a reply. Three sample pens were received for our review.

FACTS:

European Promotion sells pens to various companies who in turn give them away to their clients or customers as promotional giveaways or as advertisements. The pens are manufactured in Germany and have a plastic body and clip. The first sample is called a "necklace pen" because it has a string attached to it, so that the pen can be worn around a person's neck. The pen resembles a lolly-pop with a removable cap. An advertising message will be printed on the round cap. The country of origin marking is on the bottom section of the cap of the pen in non- contrasting raised cast-in-mold letters of about 1/16 of an inch. (This is equivalent to less than 4 point type). The second sample pen is a retractable ball point pen with a push button on top of the pen and a white plastic barrel and a red plastic clip. The country of origin marking is on the side of the clip in raised non-contrasting cast-in-mold letters of less than 1/16th of an inch (less than 4 point type). The pen must be held close to the viewer's eye before the country of origin marking becomes visible. The country of origin marking also appears on the bottom side of the clip. The third sample is also a retractable ball point pen, with a push button on top, which has a blue plastic barrel and a blue plastic clip. The country of origin marking is in non-contrasting cast-in-mold lettering of less than 1/16th of an inch (less than 4 point) on the side of the clip and must be viewed closely in order to be able to read it. The pen is also marked with its country of origin, Germany, underneath the clip in raised non-contrasting cast-molded-in letters of less than 1/16th an inch (less than 4 point). You ask whether the sample pens are legally marked, and if not whether marking the polybags with the country of origin would bring the pens into compliance.

ISSUES:

Is the country of origin marking on the three sample pens sufficiently legible and conspicuous to satisfy the requirements of the marking law?

Who is the ultimate purchaser of the pens that are given away as promotional handouts?

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). 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. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S, is able to find the marking easily and read it without strain.

In HQ 733940, October 24, 1991, we indicated that there are certain factors that need to be considered in determining if the country of origin marking on an article, such as a pen, is conspicuous within the meaning of 19 CFR 134.41 and 19 U.S.C. 1304. Among the factors that should be considered is the size of the marking, the location of the marking, whether the marking stands out, and the legibility of the marking. The size of the marking should be large enough so that the ultimate purchasers can easily see the marking without strain. The location of the marking should be in a place on the pen where the ultimate purchaser could expect to find the marking or where he/she could easily notice it from a causal inspection. Whether the marking stands out is dependent on where it appears in relationship to other print on the article and whether it is in contrasting letters to the background. The legibility of the marking concerns the clarity of the letters and whether the ultimate purchaser could read the letters of the marking without strain. No single factor should be considered conclusive by itself in determining whether a marking meets the conspicuous requirement of 19 CFR 134.41 and 19 U.S.C 1304. Instead, it is the combination of these factors which determines whether the marking is acceptable. In some cases, a marking may be unacceptable even when it is in a large size because the letters are too hard to read or it is in a location where it would not be easily noticed. In other cases, even if the marking is small, the use of contrasting colors, which make the letters particularly stand out, could compensate to make the marking acceptable.

In applying these factors to the three sample pens, we first find that the size of the markings, less than 1/16 an inch, (less than 4 point type) is small and difficult to see. The ultimate purchaser is likely to have to strain to see the markings. We also note that the country of origin markings are not in a contrasting color and do not stand out. With respect to the location of the marking on the pens, we find that an ultimate purchaser is not likely to notice them on the side of the clip or underneath the clip on two of the sample pens and on the pen cap of the "necklace pen" from a causal examination of these articles. Based on the combination of these factors, we find that the country of origin marking on the pens do not satisfy the requirements of 19 CFR 134.41 and 19 U.S.C. 1304. Accordingly, we find that the marking on the sample pens are not acceptable.

You inquire who is the ultimate purchaser of the pens. 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. 19 CFR 134.1(d)(2) also indicates that if the imported article is distributed as a gift the recipient is the "ultimate purchaser." Consequently, although the pens may be given away by businesses as promotions or advertisements, under the Customs regulations the recipient of the pens, not the importer, would be considered the ultimate purchaser. Therefore, the pens must be marked permanently, legibly and conspicuously, to indicate their country of origin to their recipient. See Pabrini, Inc. v. United States, 630 F.Supp 360 (C.I.T., 1986). Marking only the polybags in which the pens are imported with the country of origin is not acceptable unless the Customs officials at the port of entry are satisfied that the pens will remain in the unopened properly marked polybags until they reach their final recipient.

HOLDING:

Because the pens are being given away, under 19 CFR 134.1(d)(2) the ultimate purchaser of the pens is their recipient. The pens must be marked to indicate to their recipient their country of origin. The country of origin markings on the sample pens are not conspicuous and legible and are not acceptable under 19 CFR 134.41 and 19 U.S.C. 1304.

Sincerely,

John Durant, Director
Commercial Rulings Division