MAR-2-05 CO:R:C:V 734810 ER
Beth Ring, Esq.
Sandler, Travis & Rosenberg, P.A.
505 Park Avenue
New York, New York 10022-1106
RE: Country of Origin Marking for In-Flight Magazine
Folders; Disposable Containers; Ultimate Purchaser; 19
U.S.C. 1304(a)(3)(D); 19 CFR 134.32(d); 19 CFR 134.26;
19 CFR 134.24.
Dear Ms. Ring:
This is in response to your letter dated September 14, 1992,
on behalf of your client, Shorewood Packaging Corporation
("Shorewood"), in which you request a ruling concerning the
country of origin marking requirements applicable to printed
paper backs. A copy of this ruling is being sent to PBB Group
which submitted an identical request, dated February 12, 1993, on
behalf of their client, Shorewood Packaging of Scarborough,
Ontario.
FACTS:
Shorewood Packaging Corporation manufactures printed paper
backs in its Toronto plant in the following operation: solid
bleached sulfate paperboard manufactured in either Canada or the
U.S. will be made into the magazine cover backs by a "JOSH"
machine in a single line process which prints, coats and die cuts
the paperboard. The paper backs are shrink wrapped and imported
on skids holding up to 20,000 backs. After importation, the
paper backs will be sold through a distributor to Inflight
Advertising, Inc. ("Inflight"). Inflight converts the paper
backs into magazines covers by gluing a clear plastic front to
the back and folding the cover. Inflight then inserts and glues
a magazine inside the cover and sells the magazine to airlines
for distribution to and return by passengers in-flight. The
magazines covers are discarded with the magazines. Samples of
the imported backs and finished covers were enclosed with the
ruling request. The sample back measures approximately 8 x 11
inches. Both sides contain advertisements.
ISSUE:
What are the country of origin marking requirements for the
imported paper backs which are converted into magazine covers
after importation?
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. 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 are the product. Part 134,
Customs Regulations (19 CFR Part 134), implements the country of
origin marking requirements and exceptions of 19 U.S.C. 1304.
In their condition as imported the printed paper backs are
classifiable under subheading 4911.10.1080 of the Harmonized
Tariff Schedule of the United States ("HTSUS") as other printed
matter, trade or advertising material. After importation the
paper backs are converted by Inflight into disposable covers for
magazines. Inflight then fills these covers with magazines and
sells them to airlines. The covers are eventually discarded with
the magazines to which they are glued. These covers are
sufficiently similar to those containers described in section
134.24(a), Customs Regulations (19 CFR 134.24(a)) as "containers
ordinarily discarded after use" to be considered "disposable
containers":
Disposable containers or holders subject to
the provisions of this section are the usual
ordinary types of containers or holders
including cans, bottles, paper or
polyethylene bags, paperboard boxes and
similar containers or holders which are
ordinarily discarded after the contents have
been consumed.
We find that the magazine covers are the usual ordinary type of
containers for magazines used by airlines. Although the covers
are designed to be repeatedly used with the magazine, they are
disposed of along with the magazine and not reused with another
magazine. See, Holly Stores v. United States, 697 F.2d 1387, 1
Fed Cir. 16 (1982) (plastic hangars were found to be "not
designed for or capable of, reuse" and each hangar, "in virtually
every case, was associated only with one piece of clothing during
its enitre useful life.")
Normally, the ultimate purchasers of disposable containers
are the persons or firms who import them and fill or package them
with the products which they sell. Section 134.24(c), Customs
Regulations (19 CFR 134.24(c)), provides:
When disposable containers or holders are
imported by persons or firms who fill or
package them with various products which they
sell, these persons or firms are the
"ultimate purchasers" of these containers or
holders and they may be excepted from
individual marking pursuant to 19 U.S.C.
1304(a)(3)(D). The outside wrappings or
packages containing the containers shall be
clearly marked to indicate the country of
origin.
Customs has ruled that this exception is applicable in
situations where the person or firm who fills the disposable
containers is not the importer, so long as Customs is satisfied
that the outermost containers or wrappings are marked and will
reach that person or firm unopened. See, HQ 733716 (June 6,
1991). In the instant case, we find that the ultimate purchaser
of the paper backs is Inflight, the company which converts them
into the disposable folder and fills it with the magazine.
Accordingly, the paper backs are excepted from individual marking
pursuant to 19 U.S.C. 1304(a)(3)(D) and sections 134.24(c) and
134.32(d), Customs Regulations (19 CFR 134.24(c) and 134.32(d)),
so long as the outermost container of the bulk-shipped paper
backs is properly marked with country of origin and Customs is
satisfied that this container will reach the ultimate purchaser
in this manner. In the event the merchandise is repacked into
different containers before delivery to the ultimate purchaser,
the notice and certification requirements of section 134.26,
Customs Regulations (19 CFR 134.26) apply.
HOLDING:
For purposes of country of origin marking, the ultimate
purchaser of imported printed paper backs is the company which
converts them into disposable containers and fills them with the
merchandise for which they are intended. Accordingly, pursuant
to 19 U.S.C. 1304(a)(3)(D) and 19 CFR 134.24(c) and 134.32(d),
the imported paper backs are excepted from individual country of
origin marking so long as the District Director at the port of
entry is satisfied that ultimate purchaser will receive them in
the original, unopened master cartons which are properly marked
with country of origin. In the event the merchandise is
repacked, the notice and certification requirements of 19 CFR
134.26 must be satisfied.
Sincerely,
John Durant, Director
Commercial Rulings Division
cc: Deborah J. Clune