MAR 2-05 CO:R:C:V 732808 NL
John Swauger
Managing Director (Purchasing)
The Roadster Factory
P.O. Box 332
Armagh, PA 15920
RE: Country of Origin Marking of Auto Parts
Dear Mr. Swauger:
This is in response to your letter of October 9, 1989, in
which you request a blanket exemption from country of origin
marking for automotive parts imported by your company. It is not
within our authority under section 304 of the Tariff Act of 1930,
as amended (19 U.S.C. 1304), to grant blanket exemptions.
However, the ruling which follows outlines how your company may
obtain some modifications to the country of origin marking
requirements.
FACTS:
The Roadster Factory imports replacement parts for imported
automobiles from a number of countries, and then sells them,
largely by mail order, to customers in the U.S. Customs
officials at Pittsburgh, Pennsylvania have issued a number of
marking notices regarding these imports, having found that some
of the parts were not properly marked with their countries of
origin at the time of importation. After entry the parts are
warehoused. When a customer places an order a label is generated
for each part which displays part number, description, customer
name and number, and location in the warehouse. In 1988 the
Roadster Factory added the capability of printing country of
origin information on the label accompanying each part. Some of
the parts are packed in envelopes to which the labels are
affixed, while others are apparently shipped with the labels
directly affixed to them. You state that the label system
insures that the marking is always in a location which is easy
for the retail customer to find, and the wording on the statement
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and the size of the print is always consistent. It is your
position that the label system makes the labelling of the parts
prior to importation redundant. You have submitted samples of
the labels.
ISSUE:
Under what circumstances can Customs approve marking labels
affixed after importation as satisfying the country of origin
marking requirements?
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 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.
Unless one of the exceptions applies, imported articles
must be individually marked at the time of importation. If they
are not, Customs will issue a marking notice requiring either
that the goods be redelivered to Customs custody or that they be
remarked. Among the exceptions to the requirement that imported
articles be individually marked at the time of importation is 19
U.S.C. 1304(a)(3)(D), which provides that an article may be
excepted if its container will reasonably indicate its country of
origin to the ultimate purchaser. For such an exception to be
approved pursuant to a headquarters ruling as provided in Part
177, Customs Regulations (19 CFR Part 177), we require the
importer to demonstrate that the imported article will, in all
foreseeable circumstances, reach the ultimate purchaser in the
marked container in which it was imported. See HQ 729075
(January 13, 1986).
It is evident that if an imported article is to be repacked
after importation, it is not possible for the importer to offer
the assurances necessary to support the approval of a 19 U.S.C.
1304(a)(3)(D) exception pursuant to a headquarters ruling.
However, section 134.34, Customs Regulations (19 CFR 134.34),
offers importers an alternative route to approval of a 19 U.S.C.
1304(a)(3)(D) exception. The difference is that because the
article does not reach the ultimate purchaser in the marked
container in which it was imported, a continuing Customs
supervisory role is necessary. Such supervision cannot be
directed from Customs Headquarters, but necessarily must
originate with the district and must be within the discretionary
control of Customs officers on the site.
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Section 134.34 provides that the exception may be authorized
in the discretion of the district director provided that: the
containers in which the articles are repacked will indicate the
origin of the articles; the importer arranges for Customs
supervision of the repacking or provides verification
satisfactory to Customs that the repacking results in acceptable
country of origin marking prior to liquidation; and that the
liquidation is not deferred more than 60 days. The discretion
of the district director is broad. He may determine whether the
marking of the repacked containers will comply with 19 U.S.C.
1304. He may determine whether direct supervision,
certification, verification, or review of samples is necessary to
accomplish the purposes of 19 U.S.C. 1304. He may exercise the
the discretion to extend the 60-day liquidation period.
Your letter indicates that the district director has deemed
the approval of a blanket exemption to be beyond his authority.
To the extent that there is no blanket exemption available under
19 U.S.C. 1304 which can be approved either by Headquarters or
the district director, this is accurate. However, the district
director has broad discretion to determine the circumstances
under which a 19 U.S.C. 1304(a)(3)(D) exception from country of
origin marking may be authorized for importers engaged in
repacking operations. For example, the district director would
be within the scope of his discretion in approving the labels you
have submitted as samples on the basis that they constitute
adequate marking for the containers of the repacked articles.
The district director would be acting within the scope of his
discretion in determining that because the marking of the
repacked articles will be adequate, and all the imported articles
will be so repacked, the individual articles need not be marked
at the time of importation. Further, the district director would
be acting within the scope of his discretion in determining that
the 19 U.S.C. 1304(a)(3)(D) exception may be approved for all
entries made over an extended or indefinite period of time,
rather than on an entry-by-entry basis. An important element in
the exercise of the district director's discretion is his
assessment of whether the company requesting the exception can be
relied upon to carry through on its undertakings. Another factor
to be considered is whether the district has adequate resources
to provide the continuing supervision necessary to ensure proper
country of origin marking after importation.
HOLDING:
There is no blanket exemption from country of origin marking
under 19 U.S.C. 1304. Pursuant to 19 CFR 134.34 the district
director may, in the exercise of his discretion, determine the
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circumstances under which a 19 U.S.C. 1304(a)(3)(D) exception
from country of origin marking may be authorized for importers
engaged in repacking operations.
Sincerely,
Marvin M. Amernick
Chief, Value, Special
Programs and Admissibility
Branch
cc: District Director
Pittsburgh, PA