MAR-2-05 CO:R:C:V 731859 KG
Mel Noodelman
MagikWerks Publishing Inc.
1170 Sheppard Avenue West
Unit #18
Downsview, Ontario
Canada M3K 2A3
RE: Country of origin marking of books
Dear Mr. Noodelman:
This is in response to your letter of October 12, 1988,
requesting a ruling on the country of origin of children's books
pursuant to section 304 of the Tariff Act of 1930, as amended (19
U.S.C. 1304). We regret the delay in responding to your inquiry.
FACTS:
MagikWerks Publishing of America Inc. is a U.S. subsidiary
of MagikWerks Publishing Inc., a Canadian company. The companies
will be marketing personalized children's books in both the U.S.
and Canada. The book's illustrations are to be lithographed in
Hong Kong, and then shipped in unassembled form to Canada. The
text will be printed, and the books subsequently assembled and
packaged in Canada.
ISSUE:
Whether the country of origin of the books is Canada.
Whether the books can be imported into the U.S. free of
duty.
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 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. Friedlaender & Co., 27
C.C.P.A. 297 at 302 (1940).
Part 134, Customs Regulations (19 CFR 134), implements the
country of origin marking requirements and exceptions of 19
U.S.C. 1304. Section 134.1(b), Customs Regulations (19 CFR
134.1(b)), 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 the meaning of this part.
In this case, the determination of country of origin will
depend on whether or not printing the text and assembling a book
with illustrations constitutes substantial transformation. A
substantial transformation occurs when articles lose their
identity and become new articles having a new name, character or
use. United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 at 270
(1940). The article imported into Canada is merely unassembled
lithographed illustrations. The printing of text and assembly
that occurs in Canada results in a name change; the unassembled
illustrations lose their individual identity and become a book.
While a change of name is not dispositive, satisfaction of the
name criterion is evidence in favor of a finding of substantial
transformation. Ferrostaal Metals Corporation v. United States,
664 F. Supp. 535 at 541(CIT 1987).
The article imported into Canada also undergoes a change in
character. Loose illustrations have a different value than text
combined with illustrations and bound together. Further,
illustrations alone are evaluated by different criteria than a
book that contains illustrations. For instance, illustrations
could have great value because of their beauty while the value of
books is usually related to their content. The only use of
lithographed illustrations is visual while books are read and
viewed.
Unassembled illustrations not bearing a text are classified
under the Harmonized Tariff Schedule of the United
States("HTSUS") in heading 4911 while books are classified in
heading 4901. The difference in tariff classification is
additional evidence of substantial transformation. Ferrostaal
Metals Corporation, 664 F. Supp. at 541.
For the above reasons, the illustrations will be substantially
transformed into a book in Canada. Therefore, the country of
origin of these children's books is Canada.
You also asked which address of the publishing company to
use on the title page. This question is not addressed in either
19 U.S.C. 1304 or 19 CFR Part 134. As discussed above, 19 U.S.C.
1304 directs that imported goods be marked with the country of
origin so that U.S. consumers can make informed purchasing
choices. The marking statute does not delve into which address a
multi-national corporation must print on the product but rather,
is concerned with what country that particular product was made
in. However, if a U.S. address is printed on the title page, in
accordance with section 134.46, Customs Regulations (19 CFR
134.46), the language "Made in Canada," "Product of Canada," or
other words of similar meaning must be placed in close proximity
and comparable size to the U.S. address. The purpose of this
regulation is to protect the U.S. consumer from deception,
confusion or being mislead by the U.S. address appearing on an
imported article.
The last issue concerns the rate of duty for the imported
books. Printed books are provided for in chapter 49 of the
HTSUS. It is not clear from the information submitted whether
the children's books would be classified under heading 4901 or
4903. Nevertheless, both headings list a "free" rate of duty.
Therefore, it appears from the information submitted that
children's books entering the U.S. from Canada would be duty
free.
HOLDING:
Children's books printed and assembled in Canada which
contain lithographed illustrations from Hong Kong are determined
to be from Canada for country of origin marking purposes. If the
books contain a U.S. address, 19 CFR 134.46 requires that
language indicating the country of origin must be placed in close
proximity to the U.S. address, in comparable size and
conspicuously.
Sincerely,
Marvin M. Amernick
Chief, Value, Special Programs
and Admissibility Branch