MAR-05 RR:CR:SM 561220 BLS
Steven S. Weiser, Esq.
Ari L. Kaplan, Esq.
Graham & James LLP
885 Third Avenue
New York, NY 10022-4834
RE: Country of origin marking of glass jars and lids; Article 509
Gentlemen:
This is in reference to your letter dated November 12, 1998, on behalf of Miracle Candle Company/Laredo Candle Company LLP ("Miracle"), requesting a ruling concerning the country of origin marking of certain glass jars and lids to be imported from abroad.
FACTS
The following samples are submitted:
1) Sample No. 1 (Exhibit “A”) is a hexagonal glass jar measuring 3" x 3 3/4" which will be manufactured in Canada or Mexico. It has a capacity of 10 oz. (0.30 liter) and a mouth measuring 2" (approx. 51 mm). In the United States, the jar will be filled with wax, fitted with wicks, treated with fragrance and covered with a metal lid to form the completed scented “Jelly Jar” style candies. All of the materials added in the U.S. will be of U.S.-origin. Miracle plans to package two Jelly Jar candles in a single cardboard box.
2) Sample No. 2 (Exhibit “B”) is a melon shaped glass jar measuring 4 1/2" x 4 3/4" which will be manufactured in Canada. It has a capacity of 15 1/2 oz. (0.46 liter) and a mouth measuring 2 7/8" (approx. 73 mm). Miracle intends to use the jars to create its scented “Contempo” style candles. Miracle will produce these items in the United States by filling the jars with wax, fitting them with wicks and treating them with fragrance. All of the materials added in the U.S. will be of U.S.-origin. The Contempo candles will be individually packaged in cardboard boxes.
3) Sample No. 3 (Exhibit “C”) is a glass lid measuring 3 5/8" in diameter which will be
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wholly made in Mexico. Miracle intends to use the lids to cover its Contempo” style
candles. The lids will be packaged with the finished candles.
You also advise that Miracle will be the consignee but not the importer of the imported jars and lids.
ISSUE:
What are the country of origin marking requirements for the jars and lids imported from Mexico and Canada?
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, 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 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 on 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. Friedlander & Co., 27 C.C.P.A. 297 at 302; C.A.D. 104 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. 1304.
The country of origin marking requirements for a “good of a NAFTA country” are
also determined in accordance with Annex 311 of the NAFTA, as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103 182, 107 Stat. 2057) (December 8, 1993) and the regulations set forth in 19
CFR Parts 102, 134.
Section 134.1(b) of the regulations defines "country of origin" as:
the country of manufacture, production, or growth of any article
of foreign origin entering the U.S. Further work or material
added to an article in another country must effect a substantial
transformation in order to render such other country the
‘country of origin’ within this part; however, for a good of a
NAFTA country, the NAFTA marking rules will determine the
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country of origin.
Section 134.1(j) provides that the “NAFTA Marking Rules” are the rules
promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules.
Section 134.35(b), Customs Regulations (19 CFR 134.35(b)) provides that:
A good of a NAFTA country which is to be processed
in the United States in a manner that would result
in the good becoming a good of the United States
under the NAFTA Marking Rules is excepted from marking.
Unless the good is processed by the importer or on
its behalf, the outermost container of the good shall
be marked in accord with this part.
Part 102 of the regulations 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 regulations sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.11(a) provides 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 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.”
Since the finished articles are neither wholly obtained or produced in a single
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country nor produced exclusively from domestic (U.S.) materials, section 102.11(a)(1) and (2) are not applicable. Therefore, we must determine whether, pursuant to section 102.11(a)(3), the foreign materials (jars and lids) incorporated into the finished products undergo the change in tariff classification under the specific rule set forth in
section 102.20.
The articles as completed are classified under subheading 3406.00.00, Harmonized Tariff Schedule of the United States (HTSUS), "Candles, tapers and the like." It appears that the "Jelly" jars are classifiable under subheading 7010.93.50, HTSUS, the provision for other glass jars of a capacity exceeding 0.15 liter but not exceeding 0.33 liter, and the "Contempo" jars are properly classifiable under subheading 7020.92.50, HTSUS, which encompasses other glass jars of a capacity exceeding 0.33 liter but not exceeding 1.0 liter. The lids are classifiable under subheading 7010.20.20, HTSUS, the provision for glass lids and other closures produced by automatic machine.
The applicable change in tariff classification for headings 3406-3407 set out in section 102.20(h), Section VI, Chapters 28 through 38, provides as follows:
A change to subheading 3406 through 3407 from any other heading,
Including another heading within that group.
Therefore, the imported articles will undergo the requisite tariff shift, and as a result, the country of origin of the finished products will be the U.S. Accordingly, the jars and lids are excepted from individual country of origin marking requirements when imported into the U.S. As the U.S. processor is not the importer of such articles, the outermost containers of the imported articles must be marked with their country of origin. 19 CFR 134.35(b).
HOLDING:
Jars and jar lids undergo the applicable tariff shift under 19 CFR 102.20 when processed into candles in the U.S. Therefore, pursuant to 19 CFR 134.35(b), the jars and lids are excepted from the individual country of origin marking requirements when imported into the U.S. As the processor of the imported articles is not the importer, the outermost containers of the imported jars and lids must be marked with their country of origin.
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A copy of this ruling letter should be attached to the entry documents filed at the time the goods are 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