MAR-05: RR:CR:SM 560866 BLS
Mr. John W. Whitaker
O’Neill & Whitaker
1809 Baltimore Avenue
Kansas City, Missouri 64108
RE: Country of origin marking of paper clocks; Additional U.S. Note 4, Chapter 91;
special marking requirement
Dear Mr. Whitaker:
This is in reference to your letter dated February 19, 1998, on behalf of Hallmark Cards, Inc., requesting a ruling that certain “paper clocks” are marked in accordance with the special marking requirements of Additional U.S. Note 4, Chapter 91, Harmonized Tariff Schedule of the United States (HTSUS). Samples have been submitted. We regret the delay in our response.
FACTS:
The samples consist of two table clocks with cardboard containers, which enclose battery operated quartz movements (enclosed in plastic) and metal hands. On the bottom of each of the cardboard containers is a large white sticker with information including battery requirements, and the words “Mfd. for and/Fabrique pour et ...Hallmark Cards, Inc., K.C., MO 64141." The words “Taiwan Movement” are located immediately below these words. Each paper clock is marked on the back of the cardboard container in black print near the bottom of the container with the words “Clock Case Made in China.” On the back of the plastic container enclosing the movement is inscribed in raised letters the words “Made in Taiwan.”
ISSUE:
What are the country of origin marking requirements for the sample paper clocks?
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LAW AND ANALYSIS:
General Marking Requirements
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." 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.
Section 134.46, Customs Regulations (19 CFR 134.46), provides in pertinent part that when the name of any city or locality in the U.S., other than the name of the country or locality in which the article was manufactured or produced, appears on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin of the article, there shall appear legibly and permanently in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by "made in," "product of," or other words of similar meaning.
In this case, we find that as the words indicating the U.S. location of Hallmark Cards may mislead or deceive the ultimate purchaser as to the country of origin of the articles, the requirements of 19 CFR 134.46 are triggered. The words “Taiwan Movement” located immediately below the U.S. location are in comparable size and in close proximity to the U.S. address. Further, Customs has consistently held that the country of origin of a watch or clock is the country of manufacture of the watch or clock movement. Therefore, we find that the words “Taiwan Movement” are similar in meaning to “Product of Taiwan” or “Made in Taiwan.” Accordingly, we find that this marking on each of the sample clocks satisfies the requirements of 19 CFR 134.46. The general marking requirements of 19 U.S.C. 1304 are also satisfied, as the marking is in a conspicuous location, and is both legible and permanent.
Special Marking Requirements
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 clocks must be marked in accordance with the special marking requirements set forth in Additional U.S.
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Note 4, Chapter 91, HTSUS (19 U.S.C. 1202). This note requires that any clock 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, or stamping or mold marking (either indented or raised), as specified in the provisions of this note. This language is mandatory.
Section (b) of Note 4 requires that clock movements shall be marked on the most visible part of the front or back plate to show the name of the country of manufacture; the name of the manufacturer or purchaser; and, in words, the number of jewels, if any, serving a mechanical purpose as frictional bearings. Section (d) of Note 4 requires that clock cases shall be marked on the most visible part of the outside of the back to show the name of the country of manufacture. The country of manufacture in these requirements refers to where the movements and cases are manufactured rather than where the clock was made.
The marking on the back of the plastic container housing the movement of each sample is in raised lettering and reflects the name of the manufacturer and the words “Made in Taiwan.” The marking also indicates that the movement has “NO(0) JEWELS.” We find that this marking satisfies the requirements of Note 4 for clock movements as such marking is also conspicuous and satisfies the informational dictates of the Note. However, as Note 4 requires a statement of the number of jewels only when there are one or more jewels in the movement, the words “NO(0) JEWELS” are not required. See HRL 559998 dated January 30, 1997.
The initial issue to be resolved in connection with marking of the clock case of each of the samples is whether the cardboard container is a clock case and therefore subject to the special marking requirements of Note 4. Clock cases are classifiable under heading 9112, HTSUS.
Pursuant to Additional U.S. Note 1(b), Chapter 91, HTSUS, the term “cases”
embraces inner and outer cases, containers and housings for movements, together with parts or pieces, such as, but not limited to, rings, feet, posts, bases and outer frames which serve to complete the clocks.
Here, the plastic portion, immediately surrounding the movement, acts as an inner case. The cardboard portion surrounds the other parts of the clock and acts as an
outer case. The light weight and lesser durability of the cardboard portion do not preclude it from being a permanent part of the clock. The cardboard outer case gives structural support and bears ornamental graphics intended to be visually pleasing. In a
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somewhat analogous situation, Customs held that a ceramic figurine was a clock case.
See Headquarters Ruling Letter (HRL) 559934 dated October 23, 1996.
Accordingly, we hold that the cardboard containers of the two sample clocks are clock cases within the meaning of Note 4 and therefore are subject to the special marking requirements of the note.
We find that the marking on the samples does not satisfy the special marking requirements for clock cases as the cases are not marked by one of the methods specified in Note 4. Since these special marking requirements for clocks are Congressionally enacted, the Customs Service has no authority for granting exceptions. (See Headquarters Ruling Letter (HRL) 726711 dated October 22, 1984).
HOLDING:
1) The U.S. location of Hallmark Cards, Inc., indicated on the bottom of the cardboard container of each of the sample clocks triggers the requirements of 19 CFR 134.46. The marking “Taiwan Movement” is in close proximity to this U.S. geographic location and otherwise satisfies the requirements of 19 CFR 134.46.
2) The cardboard container housing the clock movement is a “clock case” within the meaning of heading 9112, HTSUS.
2) The words “CLOCK CASE MADE IN CHINA” which mark the country of origin of the clock case do not satisfy the special marking requirements of U.S. Note 4, as the method of marking does not constitute “cutting, die-sinking, engraving, or stamping or mold marking (either indented or raised).”
2) The special marking requirements mandate that a watch movement be marked with the number of jewels contained therein, which translates to one or more. As the sample clock movements contain no jewels, the words “NO (0) JEWELS” on the movement housing of each model clock is not a required marking . See HRL 559998 dated January 30, 1997.
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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