CLA-2 CO:R:C:T 089978 SK MAR-2-05 CO:R:C:V 734241 GRV
Ms. Jan McGregor
Jan McGregor Studios
19 Front Street
P.O. Box 26
Coupeville, WA 98239
RE: Classification and country of origin marking of a wood
particle board box with decorative paper exterior and
lining; 4420, HTSUSA; "washi" tea box; GRI 3(b) essential
character imparted by wood; marking requirement not
satisfied by unattached folded card insert; 134.41(b);
permanence; T.D. 55673; C.S.D. 87-9; 733728; 734150
Dear Ms. McGregor:
This is in response to your letter of June 24, 1991,
requesting a ruling concerning the tariff classification and
country of origin marking for tea boxes from Japan. A sample of
the merchandise was submitted for examination and will be
returned to you under separate cover per your request.
FACTS:
The tea box is constructed of wood particle board,
measuring approximately 6-3/4" x 4-3/8" x 4-1/4", and has a
detachable lid. The exterior of the box is entirely covered,
including the bottom, with decorative paper you describe as
handmade Japanese "washi" paper. The interior and underside of
the detachable lid are lined with aluminum foil-backed paper.
The box is intended to be used for tea storage, but can also be
used as a recipe box, jewelry box, candy box, etc.... The box
is not specially shaped or fitted for any specific purpose.
Regarding the country of origin marking of the tea boxes,
you state that placing a sticker on the tea box would damage the
covering of the box, regardless if the marking were placed on the
inside or outside of the box. Accordingly, you propose to insert
a small folding card inside each box before it is sold in the
U.S. (You state that inserting the descriptive card in each box
prior to shipment to the U.S. would be cumbersome for the
Japanese manufacturer and expensive for you). The card
describes where and how "washi" paper is made and details how to
use and care for the box. It is your contention that the
information contained on the card--alluding to Japan some four
times in an historical/product care context--more than meets the
country of origin marking requirements.
ISSUES:
I. Is the article at issue properly classifiable under heading
4420 of the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA)?
II. Whether the proposed country of origin marking scheme--
placing a folded card, which alludes to Japan some times,
inside the tea boxes--satisfies the requirements of 19
U.S.C. 1304 and 19 CFR 134.41(b).
LAW AND ANALYSIS:
Classification under the HTSUSA
Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's) taken
in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relevant section or chapter notes. Where goods cannot be
classified solely on the basis of GRI 1, and if the headings and
chapter notes do not otherwise require, the remaining GRI may be
applied in the order of their appearance.
GRI 3 states, in pertinent part:
When by application of Rule 2(b) or for any other reason,
goods are, prima facie, classifiable under two or more
headings, classification shall be affected as follows:
(a) The heading which provides the most specific
description shall be preferred to headings
providing a more general description. However,
when two or more headings each refer to part
only of the materials or substances contained in
mixed or composite goods ... those headings are to
be regarded as equally specific in relation to those
goods, even if one of them gives a more complete or
or precise description of the goods.
The article at issue consists of both wood and paper which
are classifiable under two headings of the tariff schedule.
Since both components of the box are separately provided for, GRI
3(b) applies as follows:
(b) Mixtures, composite goods consisting of different
materials or made up of different components ... which
cannot be classified by reference to 3(a), shall be
classified as if they consisted of the material or
component which gives them their essential character.
Explanatory Note VIII to GRI 3(b) states:
The factor which determines essential character will vary
as between different kinds of goods. It may, for example,
be determined by the nature of the material or component,
its bulk, quantity, weight or value, or by the role of a
constituent material in relation to the use of the goods.
The essential character of this article is imparted by the
wood for it is this component which lends shape, strength and
function to the box. Although the "washi" paper contributes to
the value of the box by virtue of its detailed manufacturing
process, the paper itself is merely decorative It is Customs'
opinion that it is the wood which enables the article to function
as a tea box or any other type of storage box and therefore it is
the wood which lends the box its essential character. See NYRL
863159. Accordingly, the box is classifiable under heading 4420,
HTSUSA, which provides for caskets and cases for jewelry or
cutlery and similar articles of wood: ... all the foregoing of
wood: other: not lined with textile fabrics.
Country of Origin Marking Requirements
The marking statute, 304 of the 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. Part 134, Customs Regulations (19 CFR Part 134),
implements the country of origin marking requirements and
exceptions of 19 U.S.C. 1304.
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. 19 CFR 134. 41(b). This section
also provides that the degree of permanence should be at least
sufficient to insure that in any reasonably foreseeable
circumstance, the marking shall remain on the article (or its
container) until it reaches the ultimate purchaser unless it is
deliberately removed. See, T.D. 55673(2), 97 Treas.Dec. 529
(1962). Further regarding this permanency requirement, we have
stated that the marking must be able to survive normal distribu-
tion and store handling. C.S.D. 87-9.
The primary purpose of the country of origin marking statute
is to "mark the goods so that at the time of purchase the ulti-
mate purchaser may, by knowing where the goods were produced, be
able to buy or refuse to buy them, if such marking should influ-
ence his will." United States v. Friedlaender & Co., 27 CCPA
297, 302, C.A.D. 104 (1940). The "ultimate purchaser" is defined
generally as 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).
Example (3) of this section provides that if an article is to be
sold at retail in its imported form, the purchaser at retail is
the "ultimate purchaser."
In Headquarters Ruling Letter (HRL) 733728 dated November
21, 1990, glassware figures, imported in boxes, were individually
marked by means of transparent stickers affixed to the bottom of
each figurine. Finding that this means of marking the country
of origin was conspicuous and also sufficiently secure to ensure
that in any foreseeable circumstance the marking would remain on
the article until it reached the ultimate purchaser unless it was
deliberately removed, we held that this means of marking the
glassware figures acceptable for purposes of 19 U.S.C. 1304 and
19 CFR 134.41(b).
In HRL 734150 dated July 15, 1991, we again addressed the
permanency requirement in the context of cigarette lighters and
their vinyl pouches, which were marked with pressure sensitive
labels that were securely affixed to each article. Finding that
these affixed labels were sufficiently permanent, we held that
this means of marking the imported merchandise was acceptable for
purposes of 19 U.S.C. 1304 and 19 CFR 134.44.
Applying these considerations to the "washi" tea boxes here,
and based on an examination of the sample submitted, we are not
convinced that the merchandise cannot be marked other than by
inclusion of a folded card placed inside the merchandise after it
is imported into the U.S. In the first place, merchandise must
be marked at the time it is imported into the U.S. See, U.S.
Wolfson Bros. Corp. v. United States, C.A.D. 856, 52 CCPA 46
(1965). Second, the inside of the lid, as it is covered merely
with aluminum foil, affords an adequate location and surface of
which to mark the country of origin of the tea boxes. Third,
should you choose to mark the country of origin by means of
adhesive paper stickers, this would dispose of the permanence
problem presented by the card insert proposal, as a reasonable
foreseeable circumstance of store handling has the card insert
falling out of the tea box when an ultimate purchaser turns the
box over, without its lid on, while inspecting the box for its
country of origin marking. Should the first consumer decide not
to purchase the tea box, a second consumer would not have the
benefit of having the inserted card inform him/her of its foreign
origin. Lastly, the proposed card insert fails to clearly and
conspicuously denote that Japan is the country of origin of the
imported merchandise. Merely alluding to a country that
manufactures of a portion of the imported article--the "washi"
paper--in an historical/product care context does not satisfy
the purpose of the marking statute: to provide notice to the
ultimate purchaser that the entire article (s)he is about to
purchase is an imported article. Accordingly, the proposed
marking scheme does not satisfy the marking requirements of 19
U.S.C. 1304 and 19 CFR 134.41(b).
HOLDING:
The merchandise at issue is classifiable under subheading
4420.90.4000, HTSUSA, which provides for caskets and cases for
jewelry or cutlery and similar articles of wood: jewelry boxes,
silverware chests, cigar and cigarette boxes, microscope cases,
tool or utensil cases and similar boxes, cases and chests, all
the foregoing of wood: other: not lined with textile fabrics.
The rate of duty is 6.7 percent ad valorem.
Based on the information and sample submitted, the proposed
marking scheme--inserting folded cards in the tea boxes after
they are imported--does not comply with the marking requirements
of 19 U.S.C. 1304 and 19 CFR 134.41(b). The articles must be
individually marked with their country of origin at the time they
are imported, and the marking must be such that it is affixed to
the article and not merely placed inside on a card or other
unattached piece of paper.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to importation of this merchandise to
determine the current status of any import restraints or
requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division