MAR-2-05 CO:R:C:V 734820 RC
Ms. Brigitte Scott Cooper
Pfaff American Sales Corp.
610 Winters Ave.
P.O. Box 566
Paramus, New Jersey 07653-0566
RE: Country of Origin Marking of Sewing Machine Parts; Repair
Parts; Re-Sale Parts; 19 CFR 134.33; 19 CFR 134.34.
Dear Ms. Cooper:
This is in response to your letter of September 10, 1992,
requesting a ruling on the country of origin marking requirements
for foreign manufactured sewing machine replacement parts
imported into the U.S. and sold to authorized dealers for
repairing customer machines and foreign manufactured sewing
supplies sold to consumers at retail. Additional information was
submitted on November 5, 1993. We regret the delayed response.
FACTS:
Your company, Pfaff American Sales Corp. (Pfaff), imports
into the U.S. repair and supply parts for Pfaff sewing machines.
The sewing machines are made in Germany; the repair parts are
manufactured in various countries. About 75% of the parts are
machine repair parts. They are used by authorized Pfaff dealers
to repair Pfaff machines and are identified below, (items 1-32).
For purposes of this ruling, we assume that you provide the
repair parts directly to the authorized dealers. You indicate
that these repair parts imported by Pfaff are for the exclusive
use of authorized Pfaff dealers who will install the replacement
parts for customers. An additional 25% of the parts are sold at
retail to customers as supplies, (items A-I). The submitted
samples are as follows:
MACHINE REPAIR PARTS
1) 93-030 733-45 Knob
2) 93-035 111-05 Friction Washer
3) 93-035 382-45 Eccentric
4) 14-650 144-05 Ball
5) 13-070 061-45 Pin
6) 93-034 998-15 Finger Guard
7) 13-250 902-55 Rivet
8) 93-034 130-15 C-Clip Catch
9) 93-040 073-45 Bobbin Winder
10)93-035 169-05 Connecting Rod
11)93-036 137-91 Take up lever
12)93-030 658-41 Lever
13)93-034 133-05 Thread Retainer
14)93-036 176-91 Thread Hook
15)93-030 829-91 Helical Gear
16)93-035 304-91 Gear
17)93-035 190-51 Presser Bar Lever-Wineberry
18)93-030 180-05 Presser Bar
19)93-040 182-05 Stud
20)93-040 085-15 Stud
21)11-106 173-25 Screw
22)93-034 129-15 Needle Fastening Screw
23)11-106 107-45 Screw
24)11-039 223-15 Screw
25)11-039 979-15 Screw
26)93-035 575-15 Thread Guide
27)93-034 131-25 Thread Guide
28)93-040 589-35 Guide
29)93-030 983-05 Tension Spring
30)93-030 033-15 Spring
31)93-035 587-05 Spring
32)93-035 057-05 Spring
RETAIL-SALE SUPPLY PARTS
A) 93-009 033-21 Metal Bobbin
B) 93-040 970-45 Clear new Bobbin
C) 93-042 960-91 Snap on Darning Foot
D) 93-042 950-91 5 Groove Snap on Carding Foot
E) 98-999 650-00 Ruffler
F) 49-020 524-81 Needles
G) 21-00E 085-00 Supersheen Thread
H) 10-000 415-00 Mez Alcazar Thread
I) 10-000 298-00 Effektgarn (Thread)
Items 1-32 were submitted in resealable plastic bags. These
parts are imported in bulk; and the bulk container is marked with
the country of origin. All of these parts are relatively small,
i.e. tiny springs, rods, tubes, nuts, bolts, washers,
miscellaneous gadgets, etc. You repackage these items into
smaller packages for your dealers. Items A-D were also submitted
in resealable plastic bags. Items E-I were submitted in retail
packaging. Item E is in a box marked "Made in Japan" on one of
its sides. Item F is in a bag with a header card marked "MADE IN
GERMANY" on both sides. Item G is in a box marked on the rear
panel "Made in EC". Item H is in a box marked on the rear panel
"Made in Germany". Item I is in a box marked on the rear panel
"Made in West Germany".
In a letter dated November 5, 1993, your associate Roger
Nuebel claims that the repair parts are so small that the cost of
marking them would increase the cost from 500 to 600%. He also
states that some of the parts are too small to mark at all while
others could lose their ability to function properly with a
country of origin label.
ISSUE:
What are the acceptable country of origin marking
requirements for the imported replacement parts and supplies
under 19 U.S.C. Part 134?
LAW AND ANALYSIS:
The marking statute, section 304, Tariff Act of 1930, as
amended (19 U.S.C. 1304), provides that, unless excepted, every
article of foreign origin (or its container) 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 the English name of the country of origin of
the article.
The "country of origin" for marking purposes is defined by
section 134.1(b), Customs Regulations (19 CFR 134.1(b)), to mean
the country of manufacture, production, or growth of any article
of foreign origin entering the U.S. Under section 134.1(d),
Customs Regulations (19 CFR 134.1(d)), the "ultimate purchaser"
generally is defined as the last person in the United States who
will receive the article in the form in which it was imported.
The marking must be conspicuous to the ultimate purchaser.
Although Customs normally does not consider the installer of
replacement or repair parts to be the ultimate purchaser, in this
case, based upon the particular facts presented, including the
fact that the parts are small and difficult to mark, they are
inexpensive and insignificant parts of a sewing machine, they are
generally not visible after relevant repairs, and they are
installed exclusively by Pfaff's authorized dealers, we find that
the ultimate purchaser of items 1-32 is the authorized dealer who
performs the repairs.
In this case, two marking exceptions appear to be
applicable. Pursuant to section 134.33, Customs Regulations (19
CFR 134.33), certain imported articles are "J-Listed", that is,
they are excepted from country of origin marking provided their
containers are marked in a manner which is legible, conspicuous,
and permanent. Here, applicable examples include: bolts, nuts,
and washers; and screws. Any of the imported articles that are
classified as such are excepted from individual marking under
this provision. However, the outermost container in which such
articles reach the ultimate purchaser is required to be marked.
In addition, section 134.32(d), Customs Regulations (19 CFR
134.32(d)), provides that an article is excepted from marking if
the marking of the article's container will reasonably indicate
the origin of such article. Customs must be satisfied that in
all reasonably foreseeable circumstances the article will reach
the ultimate purchaser in a properly marked container.
Pursuant to 19 CFR 134.34, a marking exception under 19 CFR
134.32(d) may be authorized in the discretion of the district
director for imported articles which are repacked after release
from Customs custody under the following conditions:
(1) The containers in which the articles are repacked willindicate the origin of the articles to an ultimate purchaser in
the United States.
(2) The importer arranges for supervision of the marking of
the containers by Custom officers at the importer's expense
or secures such verification, as may be necessary, by
certification and the submission of a sample or otherwise,
of the marking prior to the liquidation of the entry.
In HQ 735292 (September 21, 1993), Customs indicated that
although the above provision sets forth the procedures to be
followed when unmarked imported articles are to be repacked into
marked containers after importation, these procedures are also
appropriate in other circumstances, i.e. where articles cannot be
marked prior to importation due to practical problems.
Specifically, Customs recognized the practical problems with
affixing tags with the country of origin marking to jewelry prior
to importation and allowed the importer to affix the tags to the
jewelry after its importation, subject to approval by the
district director and the procedures set forth in 19 CFR 134.34.
Likewise, in HQ 735111 (October 15, 1993), recognizing the
existence of practical problems with marking pens, (the nature of
plastic molding, the cost of printing the pens both before and
after importation, etc.) Customs allowed the importer to print
both the country of origin marking and an advertising message on
pens after their importation, subject to approval by the district
director and the procedures set forth in 19 CFR 134.34.
Similarly, if Pfaff can demonstrate to Customs that the
imported machine repair parts (items 1-32) will reach authorized
Pfaff dealers in properly marked unopened containers, the
procedures set forth in 19 CFR 134.34 could be utilized, subject
to the approval of the district director. In such case, the
containers in which the machine repair parts are imported and
received by Pfaff must be properly marked to indicate their
country of origin. Additionally, Pfaff must file a repacking
certificate with the district director. This determination
applies only to the circumstances as described here, where the
authorized Pfaff dealer is the ultimate purchaser.
For the retail-sale supply parts (items A-I), the ultimate
purchaser is the person who buys these items at retail. As such,
the specific supply part or its retail container must be marked
to indicate its country of origin; the actual markings on items
E, F, and H comply with Part 134; the item G marking is not
proper because "EC", "European Community", or even the new "EU"
is not recognized as a country; the specific country of origin
must be used; lastly, the item I marking is not proper because
"West Germany" is no longer recognized as a country (the word
"Germany" without distinction as to east or west must be used or
"Federal Republic of Germany"). See O.C.O.D. 90-2, 21 Cust.
Bull. 45/46, November 14, 1990.
If these parts are imported in their retail containers, and
the district director at the port of entry is satisfied that the
parts will reach the ultimate purchaser in such containers, the
containers may be marked instead of the parts pursuant to 19 CFR
134.32(d).
HOLDING:
The imported bolts, nuts, washers, and screws are excepted
from country of origin marking, as "J-listed", to the extent that
their outermost container reaches the ultimate purchaser properly
marked to indicate the origin of its contents. Subject to the
provisos stated above, you may label the repair parts with the
country of origin marking after importation subject to approval
by the district director and the procedures set forth in 19 CFR
134.34. With respect to the items sold at retail A-I, the
specific supply parts or their containers must be marked to
indicate their country of origin; the actual markings on items E,
F, and H comply with Part 134; the item G marking is not proper
because "EC", "European Community", or the new "EU" is not
recognized as a country; the specific country of origin must be
used; lastly, the item I marking is not proper because "West
Germany" is no longer recognized as a country ("Federal Republic
of Germany" or the word "Germany" without distinction as to east
or west must be used) to satisfy the requirements of Part 134.
Sincerely,
John Durant, Director