MAR 2-05 CO:R:C:V 734565 LR
Ms. Carol Reignier
Manager - Customs
Timex Corporation
Waterbury, Connecticut 06722
RE: Country of origin marking of imported watch straps;
HQ 734673; HQ 733965; C.S.D. 91-23; HQ 733533; HQ 731546
Dear Ms. Reignier:
This is in response to your letter dated March 20, 1992,
concerning the method of marking the country of origin on watch
straps that are imported attached to watches.
FACTS:
HQ 733965, published as C.S.D. 91-23 in the Customs
Bulletin, on August 7, 1991, concerned the proper country of
origin marking requirements for certain leather watch straps
imported in bulk and their retail packaging. Several issues were
addressed. The first was whether a hot foil method of marking,
i.e., stamping the straps in a contrasting color, was
satisfactory. Customs determined that this method of marking was
acceptable since the contrasting color made the marking legible
and easy to read. The second issue concerned the location of the
hot foil marking - on the tip of the overlaying strap of the
buckled watch strap. Customs determined that this location was
not conspicuous as the ultimate purchaser cannot merely turn the
watch strap over to locate the marking but rather, must first
unbuckle the watch strap. The final issue, which concerned
repackaged watch straps, is not relevant to your ruling request.
You indicate that Timex is using C.S.D. 91-23 as a guide in
the marking of all current and future shipments of watch straps
imported in bulk. However, you ask Customs to limit the
requirement to mark in contrasting colors to watch straps
imported in bulk and request a ruling that permits cold stamping
(stamping in a non-contrasting color) on watch straps imported
attached to watches. This is based on your contention that a
prominent country of origin marking on a watch strap - a
relatively minor portion of the entire watch - would mislead an
ultimate purchaser concerning the country of the watch he or she
may wish to buy. You note that in some cases, a hot foil marking
on the strap may be more conspicuous than the country of origin
marking on the watch face itself, which is often quite small and
difficult to read. You believe that a ruling permitting cold
stamping of watch straps imported attached to watches would
alleviate this concern.
ISSUES:
Whether C.S.D. 91-23, which determined in part that hot foil
marking of watch straps imported in bulk was permissible, applies
to the marking of watch straps which are imported already
attached to watches.
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. Part 134, Customs
Regulations (19 CFR Part 134), implements the country of origin
marking requirements and exceptions of 19 U.S.C. 1304.
As provided in 19 CFR 134.1(b), country of origin means the
country of manufacture, production, or growth of any article of
foreign origin entering the United States. 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".
With regard to watches, Customs has ruled that the country
of origin of a watch is the country of origin of the movement.
For purposes of 19 U.S.C. 1304, this country of origin must
appear legibly, conspicuously, and permanently on the watch. The
watch face or the back of the watch case are considered
conspicuous locations. Customs has also determined that the
country of origin of the watch strap must be separately marked
when its country of origin. See HQ 733533, August 3, 1990; HQ
731546, October 27, 1988. This is because the attachment of the
watch strap to the watch does not effect a substantial
transformation of the watch strap; after attachment, the strap
maintains its separate identity. This position was most recently
reiterated in HQ 734673, July 22, 1992. Therefore, the country
of origin of the watch strap must appear legibly, conspicuously
and permanently whether imported together with the watch or
separately.
In order to satisfy the conspicuousness and legibility
requirement, the country of origin must be easy to find and easy
to read. See 19 CFR 134.41(b). The watch straps must satisfy
this standard whether they are imported in bulk or attached to
watches. As such, the discussion set forth in C.S.D. 91-23
regarding legibility and conspicuousness would apply to all such
articles. It should be noted, however, that this ruling does not
state that hot foil stamping is the requisite method of marking.
The ruling merely states that this is an acceptable method,
provided such marking appears in a conspicuous location. Any
method of marking which is easy to find and easy to read may be
used. Whether or not cold foil marking is acceptable in a given
situation depends on the size of the letters, the location of the
marking, and the depth of the impression.
We disagree with your contention that a conspicuous marking
on the watch strap will be confusing to the ultimate purchaser.
Although the watch strap may be attached to the watch, the
consumer will generally look for the country of origin of the
watch on the watch face or back of the watch case and for the
country of origin of the strap on the strap. We do agree that
many watches are being imported with an origin marking which is
difficult to read. However, the way to address this problem is
to require that watches be marked in a more conspicuous manner;
not that watch straps be permitted to be marked in a less
conspicuous manner. Therefore, Customs intends publish a
proposed notice which would require the country of origin of a
watch to appear in a more conspicuous fashion than is the current
practice. This should alleviate some of the concerns that you
have raised.
HOLDING:
Subject to the exceptions specified in 19 U.S.C. 1304 and 19
CFR Part 134, watch straps must be conspicuously marked to
indicate their country of origin whether or not they are attached
to the watch at the time of importation. Although hot foil
marking is an acceptable method, any method which is legible,
conspicuous and permanent is acceptable.
Sincerely,
John Durant, Director
Commercial Rulings Division