MAR-0-05 CO:R:C:V 735197 RSD
Mr. Tim Parched, President
Crown Herald, Inc.
5905 Johns Road
P.O. Box 24386
Tampa, Florida 33623
RE: Country of origin marking for watches, permanent; stickers;
tags; conspicuous marking; special marking; Note 4 of Chapter 91
of the Harmonized Tariff Schedule; 19 CFR 134.43; 19 CFR 11.9
Dear Mr. Parched:
This is in response to your letter dated June 2, 1993, concerning
the country of origin marking requirements for promotional watches.
Two sample watches were submitted with the ruling request.
FACTS:
The first sample watch, identified as sample watch A, is an
example of how the watches that you are currently importing into
the U.S. are being marked. The country of origin marking "JAPAN
MOVT" is printed on the bottom of the face of the watch in
approximately 3 point type (a point is a unit of measurement
approximately equal to 0.01384 inches or nearly 1/72 inches and
all type sizes are a multiple of this unit). The outside of the
back of the watch case is engraved with words "CROWN HERALD" and
"HONG KONG". There is no country of origin marking on the watch
band.
The second sample watch, sample watch B, is representative of how
you propose to mark watches in the future. There is no marking on
the face or dial of the watch. Instead, the outside of the back
of the watch case has an adhesive sticker attached to it. The
sticker states the country of origin of the watch movement with the
marking "Japan Mvmt" in about 3 point type. It also indicates the
country of assembly with the phrase "Hong Kong Asmbly" in
approximately 3 point type and identifies the importer (purchaser),
"CROWN HERALD", of the watch in about 5 point type. The leather
watch strap or band has a gold foil adhesive sticker which reads
"MADE IN HONG KONG". The pouch, which is used to hold the watches,
contains a strip of paper which states "This pouch is made in Hong
Kong." The strip of paper is loose and not attached to the pouch.
ISSUE:
Is the proposed method of marking the watches, watch straps, and
the pouches through the use of stickers as described above and
illustrated by sample watch B acceptable?
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, and permanently as the nature of the article (or
container) will permit, in such 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 of 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.
It has been the position of the U.S. Customs Service for many
years that the country of origin of a watch or clock is the country
of manufacture of the watch or clock movement. The addition of the
hands, dial, case, or watchband add definition to the time piece
but do not change the character or use of the watch or clock
movement which is the "guts" of the watch or clock. Accordingly,
in order to satisfy the requirements of 19 U.S.C 1304, a watch must
be legibly marked with the name of the country of manufacture of
the watch movement in a conspicuous place.
Section 134.43(b), Customs Regulations (19 CFR 134.43(b)), in
conjunction with section 11.9, Customs Regulations (19 CFR 11.9),
provides that watches must be marked in accordance with the special
marking requirements set forth in Chapter 91, Additional U.S. Note
4 of the Harmonized Tariff Schedule of the United States (HTSUSA)
(19 U.S.C. 1202). This note requires that any watch movement, or
case provided for in the subpart, whether imported separately or
attached to any article provided for in the subpart, shall not be
permitted to be entered unless conspicuously and indelibly marked
by cutting, die-sinking, engraving, stamping, or mold-marking
(either indented or raised), as specified in the provisions of this
note. This marking is mandatory. The Customs Service has no
authority for granting exceptions to the special marking
requirements for watches.
Section (a) of Additional U.S. Note 4 requires that watch
movements shall be marked on one or more of the bridges or top
plates to show the manufacturer or purchaser; and, in words, the
number of jewels, if any servicing a mechanical purpose as
frictional bearings. Section (c) of Additional U.S. Note 4
requires that watch cases shall be marked on the inside or outside
of the back cover to show the name of the country of manufacture,
and the name of the manufacturer or purchaser. The country of
manufacture in these requirements refers to where the movements and
cases are manufactured rather than where the watch was made. The
special marking must be accomplished by one of the methods
specified in the Additional U.S. Note 4, and using stickers is not
an acceptable alternative.
You are inquiring as to whether the watches you import can be
marked with adhesive stickers. As a general rule, section 304
marking requirements are best met by marking worked into the
article at the time of manufacture. For example, it is suggested
that the country of origin for metal articles be die-sunk, molded
in or etched. See 19 CFR 134.41. However, for section 304
marking, the Customs Service normally permits any reasonable method
of marking that will remain on the article during handling until
it reaches the ultimate purchaser. This includes the use of paper
stickers or pressure sensitive labels and string tags. If paper
stickers or pressure sensitive labels are used, section 134.44,
Customs Regulations (19 CFR 134.44), provides that they must be so
securely affixed in a conspicuous place that, unless deliberately
removed, they will remain on the article while it is in storage or
on display and until it is delivered to the ultimate purchaser.
For section 304, the country of origin marking for a watch may be
placed in any conspicuous location. This would include marking on
the face of the dial or on the outside surface of the back cover
of the watch case. An adhesive sticker may be used for section 304
marking on a watch as long as the sticker is affixed so securely
that unless deliberately removed it will remain on the watch while
it is in storage or on display until it is delivered to the
ultimate purchaser. The marking must also be legible and in a conspicuous place so that the ultimate purchaser
can make an informed purchasing decision. See HQ 734758 (March 1,
1993).
In this case, the sticker on the outside of the back of the watch
case of sample watch B is in a conspicuous location. The country
of origin marking, "Japan Mvmt", is easy to find and can be read
without strain. We also find that the sticker is securely affixed
to the back of the watch case and that it is likely to remain on
the article unless it is deliberately removed. Therefore, it
satisfies the permanency requirement of 19 U.S.C. 1304.
Accordingly, the country of origin marking on the sticker on the
back of the outside of the watch case of sample watch B satisfies
the Section 304 requirements for country of origin marking.
However, the special marking requirements of Additional U.S. Note
4 of Chapter 91 of the HTSUS as indicated above cannot be satisfied
by the use of an adhesive sticker. One of the specified methods
must be used. Consequently, the markings on the sticker on sample
watch B do not satisfy the special marking for watches of U.S.
Additional Note 4 of Chapter 91 of the HTSUS. To satisfy the
special marking requirements, the movements and the watch case
must be marked, as specified above, by cutting, die-sinking,
engraving, stamping, or mold-marking (either indented or raised).
We have no indication whether the watch movements are correctly
marked.
Additionally, with regard to the watch strap or band, Customs has
determined that watch strap must be separately marked when its
country of origin is different than the watch. This is because the
attachment of the watch strap to the watch does not effect a
substantial transformation of the watch strap; after attachment,
the strap maintains its separate identity. See HQ 734565 (October
16, 1993). Therefore, the country of origin of the watch strap
must appear legibly, conspicuously, and permanently whether
imported together with the watch or separately. We find that the
marking on the gold foil sticker on the sample watch B is
sufficiently legible, conspicuous, and permanent to satisfy the
requirements of 19 U.S.C. 1304.
The marking for the watch pouch is on a strip of paper which is
stuck inside the pouch, but is not attached to the pouch. We
believe that the strip of paper could easily fall out of the pouch
during the normal course of handling the product, and thus it is
not acceptably permanent and will not satisfy the requirements of
19 U.S.C. 1304. To be acceptable, the marking must be securely
affixed to the pouch that it will stay on the pouch during the
normal course of handling.
HOLDING:
The country of origin marking on sample watch B through the use of
a sticker on the back of the watch case satisfies the requirements
of 19 U.S.C. 1304. The marking on the sticker does not satisfy the
special marking requirements of U.S. Additional Note 4 of the
Chapter 91 of the HTSUS. The marking of the watch strap by the use
of a gold foil sticker on sample watch B is an acceptable method
of indicating the country of origin of the watch strap. The
marking of the pouch is not permanent and is therefore
unacceptable.
Sincerely,
John Durant, Director