MAR-2-05 CO:R:C:V 734720 ER
Mr. William L. Morandini
District Director of Customs
477 Michigan Ave., Room 200
Detroit, Michigan 48226-2568
RE: Country of Origin Marking of Self-Adhesive Plastic Tape
Manufactured in the U.S. and Cut to Length and Width in
Canada; 19 CFR 134.32(m).
Dear Mr. Morandini:
This is in response to your request for internal advice
dated June 9, 1992, regarding the country of origin marking
requirements for 3-M self-adhesive tape used in portable or desk
top style dispensers which is manufactured in the U.S. and is cut
to length and width in Canada.
FACTS:
3-M self-adhesive tape of the type used in portable or desk
top style dispensers is manufactured in the U.S. into continuous
rolls in varying widths. These "log" rolls will be exported to
Canada where they will be cut to the desired length and width.
The finished product will be returned to the U.S.
3-M contends that cutting the tape to length and width in
Canada does not substantially transform it into a product of
Canada and therefore requests an exception to marking pursuant to
section 134.32(m), Customs Regulations (19 CFR 134.32(m)).
We have also received a memorandum on this matter from the
National Import Specialist Branch 3, New York Seaport. The
memorandum states that the operations to be performed in Canada
would not constitute a substantial transformation and that the
self-adhesive tape would still be considered a product of the
United States for purposes of country of origin marking.
ISSUE:
Is self-adhesive tape manufactured in the U.S. into
continuous rolls, cut to length and width in Canada and then
returned to the U.S., entitled to an exception to marking
pursuant to 19 CFR 134.32(m) for American goods exported and
returned?
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 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. 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,
by 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 (C.A.D. 104) (1940).
By definition, only merchandise which is "of foreign
origin", i.e., of a country of origin other than the U.S., is
subject to the requirements of 19 U.S.C. 1304. Stated
differently, products of the U.S. are not subject to these
requirements. Part 134, Customs Regulations (19 CFR Part 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 the marking laws and
regulations. The case of U.S. v. Gibson-Thomsen Co., Inc., 27
C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in
manufacture which results in an article having a name, character
or use differing from that of the constituent article will be
considered substantially transformed.
Section 134.32(m), Customs Regulations (19 CFR 134.32(m)),
provides an exception from marking for U.S. products exported and
returned. Products of the U.S. sent abroad for processing fall
within this exception unless they are substantially transformed
prior to their return to the U.S. See, HQ 732480 (July 31,
1989).
It is therefore necessary to determine whether the U.S.
origin self-adhesive tape is substantially transformed when it
cut to length and width in Canada. In HQ 729316 (April 20,
1989), abrasive belts manufactured in the U.S. into continuous
rolls in varying widths were exported to Mexico where they were
cut to proper length (and in some cases, also to width), 3/8 inch
of the abrasive was ground off each end, and the two ends were
spliced together with an adhesive before being returned to the
U.S. There, Customs found that the operations performed in
Mexico did not substantially transform them into a product of
Mexico.
Similarly in the instant case, we find that cutting the U.S.
manufactured self-adhesive tape to length and width in Canada
does not substantially transform the tape into a product of
Canada. The operations performed in HQ 729316, discussed above,
did not result in a substantial transformation and were more
extensive in nature than are those in the instant case. Thus,
under 19 CFR 134.32(m), the self-adhesive tape is excepted from
the country of origin marking requirements of 19 U.S.C. 1304.
HOLDING:
The cutting to length and width of U.S. manufactured self-
adhesive tape in continuous rolls is not a substantial
transformation. Because the tape remains a product of the U.S.,
under 19 CFR 134.32(m) it is excepted from the country of origin
marking requirements of 19 U.S.C. 1304.
Sincerely,
John Durant, Director