MAR-2-05 CO:R:C:V 734494 ER
Mr. Gary Grewal
Proprietor
American Plastics
28056 Ziele Creek Drive
Hayward, CA 94542
RE: Country of Origin Marking of Zipper Sliders from Taiwan
and Korea; Ultimate Purchaser; 19 U.S.C. 1304(a)(3)(D);
19 CFR 134.32(d); 19 CFR 134.1(d); HQ 707708 (July 21,
1977).
Dear Mr. Grewal:
This is in response to your letter of January 21, 1992 in
which you request a binding ruling regarding the country of
origin marking requirements for zipper sliders from Taiwan and
Korea.
FACTS:
American Plastics imports zipper sliders from Taiwan and
Korea. In its imported condition the merchandise is packaged in
bags of 500 pieces each and boxes of 5000 pieces each, both of
which are marked to indicate the country of origin of the
sliders. The merchandise is kept in stock at American Plastics
until customers submit orders by telephone. American Plastics'
customers consist of manufacturers who use the zipper sliders in
the manufacture of apparel and outdoor products. American
Plastics submitted signed statements from its customers
identifying the products that are manufactured with the imported
merchandise and certifying that the zipper sliders are not sold
individually by the customers. The statements also assert that
the customers are aware that the zipper sliders are imported. By
telephone conversation on February 19, 1992, American Plastics
stated that the sliders are sold and shipped from its premises
directly to the manufacturers where they are incorporated into a
variety of products including such things as backpacks, jackets
and spa covers. There are no sales of less than a full bag or
less than a full box. The sliders are shipped to the
manufacturers from American Plastics in the original unopened
bags and boxes which are marked with the country of origin, i.e.,
"Made in Taiwan" or "Made in Korea". All shipments are received
by the manufacturers in the marked and unopened containers.
ISSUE:
Whether the zipper sliders which are imported in containers
marked with the country of origin and sold by the importer in
this manner directly to manufacturers for incorporation into
apparel and outdoor products are excepted from individual
marking.
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 United
States the English name of the country 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.
Among the exceptions to country of origin marking is 19
U.S.C. 1304(a)(3)(D), also provided for in section 134.32(d),
Customs Regulations (19 CFR 134.32(d)). That section provides
that articles for which the marking of their containers will
reasonably indicate the country of origin of the articles may be
excepted from country of origin marking. However, for the
exception to apply Customs must be satisfied that the articles
will reach the "ultimate purchaser" in the original, properly
marked containers in which the articles were imported. Section
134.1(d), Customs Regulations (19 CFR 134.1(d)), defines the
"ultimate purchaser" as generally the last person in the United
States who will receive the article in the form in which it was
imported.
In order to determine whether this exception applies it is
necessary to determine who is the ultimate purchaser of the
zipper sliders. In HQ 707708 (July 21, 1977), Customs found that
manufacturers who used imported zippers in the manufacture of
various articles of clothing were the ultimate purchasers of the
zippers within the meaning of 19 U.S.C. 1304. In that case,
Customs ruled that so long as the zippers reached the
manufacturers in properly marked cartons, the individual zippers
could be exempted from country of origin marking pursuant to 19
U.S.C. 1304(a)(3)(D).
Similarly, in the instant case, the manufacturers who
purchase the zipper sliders from American Plastics for
manufacture into various articles of clothing and outdoor
products are the "ultimate purchasers" of the imported
merchandise within the meaning of the marking statute. Based on
the evidence submitted, Customs is satisfied that the ultimate
purchasers of the imported merchandise use it in the manufacture
of apparel and outdoor products and do not sell the zipper
sliders individually. Accordingly, the zipper sliders may be
excepted from individual country of origin marking as set forth
below.
HOLDING:
Zipper sliders may be excepted from individual country of
origin marking pursuant to 19 U.S.C. 1304(a)(3)(D) and 19 CFR
134.32(d), so long as they are imported in a properly marked
container and Customs officials at the port of entry are
satisfied that the zipper sliders will be used only in the manner
described above and that the ultimate purchaser, the
manufacturer, will receive the zipper sliders in their original
unopened and properly marked container.
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: Stuart Mayar
U.S. Customs
San Francisco, CA