MAR-2-05 R:C:S 558944 DEC
Mr. Earl A. Roberts
R.L. Jones Customhouse Brokers, Incorporated
P.O. Box 472
Calexico, California 92231
RE: NAFTA; Article 509; 19 CFR 102.11; 19 CFR 102.18; Country of
origin
marking for sunglasses and reading glasses; 19 CFR 102.14;
19 CFR 134.43
Dear Mr. Roberts:
This is in response to your letter dated July 23, 1994, on
behalf of your client, Greatech Vision, requesting a ruling on
the country of origin marking requirements for finished
sunglasses and reading glasses.
FACTS:
On behalf of your client, Greatech Vision, you have
submitted various samples of sunglass frames, sunglass lenses,
reading eyeglass frames, and lenses. Greatech Vision plans to
manufacture plastic lens blanks in the United States. The lens
blanks will be sent to Mexico to be washed in detergent, dipped
in a silicone solution for hard coating, oven dried, cut to
shape, and inserted into plastic frames that are manufactured in
Mexico. Greatech Vision intends to mark the lenses with a self-stick paper label stating "Precision Optical Lenses Made in
U.S.A." or "Lenses Made in U.S.A.", with the words "Assembled in
Mexico" directly below. The sample reading glass and sunglass
frames have the word "Mexico" screen printed on one of the
temples of the frames.
ISSUE:
What are the proper country of origin marking requirements
for the finished sunglasses and reading glasses that are produced
as 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 United States 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 in the United
States the English name of the country of origin of the article.
The Customs Regulations implement the country of origin marking
requirements and exceptions of 19 U.S.C. 1304. Part 134 of the
Customs Regulations implements the country of origin marking
requirements and exceptions of 19 U.S.C. 1304. Section
134.41(b), mandates that the ultimate purchaser in the United
States must be able to find the marking easily and read it
without strain.
Part 102 of the interim regulations (Customs Regulations (19
CFR Part 102)), sets forth the NAFTA Marking Rules for purposes
of determining whether a good is a good of a NAFTA country for
marking purposes. Section 102.11 of the interim regulations sets
forth the required hierarchy for determining country of origin
for marking purposes. Section 102.11(a) of the interim
regulations states that
[t]he country of origin of a good is the country in
which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from
domestic
materials; or
(3) Each foreign material incorporated in that
good
undergoes an applicable change in tariff
classification set out in section 102.20 and
satisfies any other applicable requirements
of
that section, and all other requirements of
these rules are satisfied.
"Foreign Material" is defined in section 102.1(e) of the interim
regulations as "a material whose country of origin as determined
under these rules is not the same country as the country in which
the good is produced."
Section 102.11(a)(1) and section 102.11(a)(2) do not apply
to the facts presented in this case because neither the
sunglasses or reading glasses are wholly obtained or produced in
Mexico nor are they produced exclusively from domestic (Mexican)
materials. In fact, the glasses are produced from materials from
the United States and Mexico. Since an analysis of sections
102.11(a)(1) and 102.11(a)(2) will
not yield a country of origin determination, we look to section
102.11(a)(3). Section 102.11(a)(3) provides that the country of
origin is the country in which "[e]ach foreign material
incorporated in that good undergoes an applicable change in
tariff classification in 102.20. . .." When imported into
Mexico, the plastic lenses used to produce the sunglasses and the
reading glasses are classified under subheading 9001.50.00,
Harmonized Tariff Schedule of the United States (HTSUS). The
finished sunglasses and reading glasses are classified under
heading 9004, HTSUS. The applicable tariff shift rule found in
section 102.20(r) provides as follows:
HTSUS Tariff Shift and/or other requirements
9004........... A change to heading 9004 from any other
heading,
except from subheading 9001.40 or 9001.50.
Thus, the U.S.-produced lenses that are transported to Mexico to
be processed into finished glasses do not undergo an applicable
tariff shift. The rule set forth above specifically precludes a
tariff shift where lenses are processed into finished glasses.
Since the foreign material that is to be incorporated into the
finished article does not undergo a tariff shift, a country of
origin determination cannot be made under section 102.11(a)(3).
Since no country of origin determination could be made
applying section 102.11(a), the analysis continues with section
102.11(b) which instructs us to examine the article's essential
character to determine its country of origin. Section 102.11(b)
provides that where the country of origin cannot be determined
under section 102.11(a), and the good is not specifically
designated as a set pursuant to the Harmonized System nor
classified as a set under General Rule of Interpretation 3, the
country of origin of the article is "the country or countries of
origin of the single material that imparts the essential
character of the good. . .."
In determining the "essential character" of the finished
glasses, section 102.18(b)(2) of the interim regulations provides
as follows:
For purposes of applying 102.11, only domestic
and foreign materials (including self-produced
materials) that are classified in a tariff provision
from which a change in tariff classification is not
allowed in the rule for the good set out in 102.20
shall be taken into consideration in determining the
essential character of the good.
In this case, the materials that do not undergo the applicable
tariff shift are the lenses. Therefore, the U.S.-origin lenses
are the components that impart the essential character unto both
the finished sunglasses and reading glasses. The country of
origin of these items at this point in the analysis is the
United States.
Section 102.14, however, states that
No good, last advanced in value or improved in
condition
outside the United States has United States origin. If
under
any other provision of this part such a good is
determined
to be a good of the United States, that determination
will be
disregarded and the country of origin of the good will
be the
last foreign country in which the good was advanced in
value
or improved in condition.
Consequently, the U.S.-origin determination is disregarded and
the country of origin of both the sunglasses and the reading
glasses is Mexico since the glasses were last advanced in value
or improved in condition in Mexico.
Section 134.43(e) states that
Articles returned to the U.S. after having been
advanced in value
or improved in condition outside the United States.
Where the
country of origin of an article is determined in
accordance with
102.14, part 102 of this Chapter, such article, at the
choice of
the importer, exporter or producer of the good, may be
marked,
as appropriate, in a manner such as the following:
(1) Assembled in (name of foreign country) from U.S.
components;
(2) Further processed in (name of country of origin)
from U.S. materials;
(3) Product of (name of foreign country) made from
U.S. components; or
(4) Product of (name of foreign country).
Since the origin determination was reached pursuant to section
102.14, the articles may be marked "Product of Mexico made from
U.S. lenses" or "Product of Mexico."
HOLDING:
The finished sunglasses and reading glasses are a product of
Mexico pursuant to the NAFTA Marking Rules. Accordingly, the
country of origin marking is required to indicate Mexico as the
country of origin of the finished glasses.
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is entered. If the
documents have been filed without a copy, this
ruling should be brought to the attention of the Customs officer
handling the transaction.
Sincerely,
John Durant, Director
Commercial Rulings Division