MAR-2-05 CO:R:C:V 731028 jd
Andrew P. Vance, Esq.
Barnes, Richardson & Colburn
475 Park Avenue South
New York, New York 10016
RE: Country of origin marking requirements for wearing apparel
manufactured in the Commonwealth of Northern Mariana Islands
Dear Mr. Vance:
This is in reply to your letter of February 2, 1988,
requesting a ruling on the country of origin marking requirements
for wearing apparel to be manufactured in the Commonwealth of
Northern Mariana Islands, also referred to as Saipan.
FACTS:
According to your submission, which incorporates by reference
a letter to the Federal Trade Commission dated February 1, 1988,
foreign origin fabric will be imported in the piece into Saipan
where it will be cut to shape and size, assembled and sewn, and
then exported to the U.S.
You have inquired as to what marking requirements, if any, of
19 U.S.C. 1304 are applicable to such importations. You are
aware of Federal Trade Commission jurisdiction over certain
markings contemplated for such importations, e.g., "Made in
U.S.A. of imported fabric", and you have supplied us with a copy
of the response you received from the FTC.
ISSUE:
Do the country of origin marking requirements of 19 U.S.C.
1304 apply to wearing apparel manufactured in the Commonwealth of
Northern Mariana Islands (Saipan)?
LAW AND ANALYSIS:
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304), provides that every article of foreign origin (or its
container) imported into the United States shall be marked in a
conspicuous place as legibly, indelibly, and permanently as the
nature of the article (or container) will permit, in such a
manner as to indicate the foreign origin of the article.
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Section 134.1(c), Customs Regulations (19 CFR 134.1(c)),
defines "foreign origin" as "a country of origin other than the
United States, as defined in paragraph (e) of this section, or
its possessions and territories." Section 134.32(l), Customs
Regulations (19 CFR 134.32(l)), specifically excludes from the
marking requirements of 19 U.S.C. 1304 those articles which are
"products of possessions of the United States."
Further, { 12.130, Customs Regulations (19 CFR 12.130),
requires that the standard of substantial transformation govern
the determination of the country of origin where textiles and
textile products are processed in more than one country. The
country of origin of textile products is deemed to be that
foreign territory, country, or insular possession where the
article last underwent a substantial transformation. Substantial
transformation is said to occur when the article has been
transformed into a new and different article of commerce by means
of substantial manufacturing or processing operations.
You indicate that foreign piece goods will be imported into
Saipan and there cut and made into articles of apparel. Without
samples of the merchandise as it enters and as it leaves Saipan,
we are unable to definitively rule on whether the piece goods
have undergone a change in the country of origin. However, your
attention is directed to { 12.130 (e)(iv), Customs Regulations
(19 CFR 12.130 (e)(iv)), which states that the cutting of fabric
into parts and the assembly of those parts into the completed
article will usually result in the processing country being the
country of origin. In addition, Customs has held that the
cutting of fabric (which contains no indication of where that
fabric is to be cut) into garment parts constitutes a substantial
transformation of the fabric and the parts become a product of
the country where the fabric is cut.
Therefore, if the fabric imported into Saipan is not marked
in any way for cutting, the resulting garments will be products
of Saipan.
Commencing on July 18, 1947, the U.S. became the
administering authority of the Trust Territory of the Pacific
Islands, an area including the Northern Mariana Islands
(Trusteeship Agreement, 61 Stat. 3301, T.I.A.S. No. 1665, 8
U.N.T.S. 189). In accordance with provisions of the trust
agreement to promote self-government for the peoples of the trust
territory, on March 24, 1976, the U.S. signed a Covenant to
Establish a Commonwealth of the Northern Mariana Islands in
Political Union with the United States, Pub. L. 94-241, 90 Stat.
263. That covenant became fully effective as of November 4, 1986
and replaced the trusteeship agreement (see Presidential
Proclamation 5564 of November 3, 1986 and E.O. 12572 of November
3, 1986).
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Article 6 of the Covenant, { 603(c), provides that "Imports
from the Northern Mariana Islands into the customs territory of
the United States will be subject to the same treatment as
imports from Guam into the customs territory of the United
States."
Customs has previously ruled that products of Guam are
excepted from country of origin marking requirements under
{ 134.32(l), Customs Regulations (19 CFR 134.32(l)), as products
of possessions of the U.S. (725787 HL; July 25, 1984). In
regards to the Northern Mariana Islands, "Customs treats the
Northern Mariana Islands as a territory or possession of the
United States and products therefrom would be excluded from the
country of origin marking requirements" (729704 km; September 12,
1986).
The Federal Trade Commission, pursuant to rules and
regulations issued under the authority of the Textile Fiber
Products Identification Act, stated in a staff opinion letter
that garments made in Saipan of imported fabric should be labeled
"Made in USA of Imported Fabric" (FTC letter to Andrew P. Vance,
Esq., dated February 26, 1988).
HOLDING:
Wearing apparel that is a product of the Northern Mariana
Islands is exempt from the country of origin marking requirements
of 19 U.S.C. 1304 upon importation into the U.S., but must be
marked in accord with the FTC requirements noted above.
Sincerely,
John Durant, Director
Commercial Rulings Division
1cc: CO:R:C:V:JDOYLE:LDC:7/7/88
Andrew P. Vance, Esq.
Barnes, Richardson & Colburn
475 Park Avenue South
New York, New York 10016