MAR-2-05 CO:R:C:V 734476 ER

Ms. Annette Cortez
American Terrain
6353 Corte Del Abeto
Suite 106
Carlsbad, CA 92009

RE: Placement of Country of Origin Marking Label on a Man's Woven Shirt; 19 U.S.C. 1304; 19 CFR 134.1(d); 19 CFR 134.47; United States v. Friedlaender & Co., 27 C.C.P.A. 297, C.A.D. 104 (1940); C.S.D. 88-38, 22 Cust. Bull. 420 (1988); T.D. 54640(6) 1958; HQ 729495 (April 21, 1986).

Dear Ms. Cortez:

This is in response to your letter of December 10, 1991, in which you request a ruling regarding the correct placement of the country of origin label inside a man's woven shirt. A sample was provided.

FACTS:

The sample garment, a product of Hong Kong, is a long sleeve white button-up shirt, style ADS-100, with a collar. The words "American Terrain", a trade name, appear on the inside of the shirt on a label sewn 1/2" below the bottom collar seam into the center of the neck midway between the shoulder seams. The words appear in black letters (approximately 1/8" in height and width) on a multicolor label measuring approximately 1 3/4" x 3 1/2". The words "Made in Hong Kong" appear in black letters of equal size (approximately 1/8" in height and width) on a country of origin label. The country of origin label is smaller (approximately 1" x 1"), terra cotta colored and is sewn into the bottom collar seam 1/2" above and 1/2" to the right of the first label. The label is obscured by the collar. By telephone conversation on January 29, 1991, you confirmed that the shirts are sold at the retail level and are displayed either folded or hanging.

ISSUE:

Whether the country of origin labels on the men's shirts, style ADS-100, are properly located within the meaning of section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304).

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 (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 its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of the article. Part 134, Customs Regulations (19 CFR 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

The primary purpose of the country of origin marking statute 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, C.A.D. 104 (1940). Section 134.1(d), Customs Regulations (19 CFR 134.1(d)) defines the "ultimate purchaser" generally as the last person in the United States who will receive the article in the form in which it was imported. Since the shirts are intended for sale at the retail level, the retail consumer is considered the ultimate purchaser in this case for the purpose of implementing the country of origin marking laws.

At issue here is the proper location of the country of origin label in the shirt. Customs has determined that country of origin marking appearing on the inside center of the neck of a shirt midway between the shoulder seams or in that immediate area is conspicuous within the meaning of 19 U.S.C. 1304 and is, in fact, the requisite location. T.D. 54640(6). Also relevant are the requirements of two related provisions of the marking regulations, 19 CFR 134.46 and 19 CFR 134.47. In the instant case, application of special marking requirements set forth in these provisions are triggered by the presence of the word "American" printed on one label. The purpose of both provisions is the same, namely to prevent the ultimate purchaser from being misled or deceived when the name of a country or place other than the country of origin appears on an imported article or its container. The critical difference between the two provisions is

that section 134.46, Customs Regulations (19 CFR 134.46) requires that the name of the actual country of origin appear "in close proximity" to the U.S. reference and in lettering of at least comparable size. By contrast, section 134.47, Customs Regulations (19 CFR 134.47) is less stringent, providing that when as part of a trade name, trademark or souvenir mark, the name of a location in the United States or "United States" or "America" appears on the imported article, the name of the country of origin must appear in close proximity or "in some other conspicuos location". In other words, the latter provision triggers only a general standard of conspicuousness. In either case, the name of the country of origin must be preceded by "Made in", "Product of", or other similar words. As applied here, the less stringent requirement of section 134.47, Customs Regulations (19 CFR 134.47) applies since the word "American" appears as part of the trade name "American Terrain".

In HQ 729495 (April 21, 1986), Customs ruled that certain men's shirts were not adequately marked as to country of origin. There, the shirts had two labels permanently affixed to the inside of the shirt collar. One label was placed in the middle of the back of the collar, and bore the words "Fabric Woven in U.S.A.". The second label was sewn into the collar 5/8" below and 3/4" to the right of the first label, and bore the words "Assembled in Honduras". Headquarters determined that the shirts in question did not satisfy the marking requirements because the fabric label was not affixed on the inside center of the neck midway between the shoulder seams or in that immediate area as required by T.D. 54640(6) and because the fabric label with the country of origin was significantly off to the side and partially obscured by the collar. Similarly here, the shirt fails to satisfy the location requirement prescribed by T.D. 54640(6) since the country of origin label is significantly to the right of the center of the neck area and is obscured by the collar.

Since the shirt fails to meet the country of origin marking location requirement set forth in T.D. 54640(6) and explained above, for purposes of this ruling it is unnecessary to determine whether it satisfies the conspicuousness requirement of section 134.47, Customs Regulations (19 CFR 134.47). However, for future reference it is worthwhile to note that in C.S.D. 88- 38, 22 Cust. Bull. 420, HQ 731314 (July 18, 1988), Customs specifically attributed the correct location of a country of origin label (in the inside center of the neck midway between the shoulder seams, as set forth in T.D. 54640(6)) as the determining criteria in concluding that the conspicuousness requirement of section 134.47, Customs Reglations (19 CFR 134.47) was met.

HOLDING:

Based on the information and sample submitted, the country of origin marking of men's shirts, style ADS-100, does not comply with the location requirement prescribed by T.D. 54640(6) and consequently does not satisfy the marking requirements set forth in 19 U.S.C. 1304.

Sincerely,

John Durant, Director
Commercial Rulings Division

cc: Joan L. Peterson
Chief, NIS
Branch 3, NY Seaport