CLA-2-33:OT:RR:NC:N1:140
Mr. Stephen P. McNamara
St. Onge Steward Johnston & Reens LLC
986 Bedford Street
Stamford, CT 06905
RE: The Country or Origin Marking of Cristiano Ronaldo CR7 Eau De Toilette or
Eau De Parfum
Dear Mr. McNamara:
In your letter dated September 25, 2018, you requested a tariff classification ruling on behalf of your client Arion Perfume & Beauty, Inc.
You provided the following information on the manufacture of the instant product. “The perfume oil base is exported from the United States to the United Arab Emirates (UAE) where it is blended and packaged. The perfume oil base is not chemically changed after delivery from the supplier, and no blending or mixing of different fragrance oils takes place in the UAE. The perfume oil base is blended in the UAE with ethyl alcohol sourced from Pakistan and water sourced from India. The blending dilutes the strength of the perfume oil and decreases the viscosity of the product making it suitable for dispensing with a spray pump mechanism. However, the finished product retains the same chemical identity and character as the precursor perfume oil base. The blend is then chilled, filtered to remove any dust or debris, filled into glass bottles sourced from China. The bottle is fitted with a spray pump mechanism sourced from China and a cap also sourced from China.”
Additionally you indicate that “Arion submits that no substantial transformation of the perfume oil occurs in the UAE for country of origin purposes.”
You requested on the basis of the preceding information, a ruling that the country of origin marking for the Cristiano Ronaldo CR7 Eau De Toilette, or Eau De Parfum product, are determined by the country of origin of the perfume oil base, which provide the essential character of the Eau De Toilette or Eau De Parfum product, namely the United States.
A similar issue was addressed in Headquarters ruling HQ H175959, and NY ruling N220473. A copy of those rulings may be found at: https://rulings.cbp.gov.
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 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, 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, 302, C.A.D. 104 (1940).
Part 134, U.S. Customs and Border Protection Regulations (19 C.F.R. §134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines “country of origin” as “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’ within the meaning of [the marking laws and regulations].” For country of origin marking purposes, a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. However, a substantial transformation will not result from a minor manufacturing or combing process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940).
Based upon the cited rulings above, we agree with your suggestion, that the processing of perfume oil bases in the United Arab Emirates into the finished fragrances does not constitute a substantial transformation, for country of origin marking purposes under 19 U.S.C. § 1304. While the finished fragrances are made suitable for spraying by diluting perfume oil bases, they retain the same chemical identity and character as the precursor perfume oil bases. Changes in concentration and viscosity only do not result in a substantial transformation, despite the fact that the processing operations in the UAE make the instant products suitable for human application. Therefore, for the purposes of 19 U.S.C. § 1304, the country of origin of perfume oil bases, which determines the essential character of the Cristiano Ronaldo CR7 Eau De Toilette or Eau De Parfum, remains the United States.
Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin is an issue under the authority of the Federal Trade Commission (FTC). In regard to the proposed markings on the retail packaging, we suggest that you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, NW, Washington, D.C. 20508, as to whether the proposed markings satisfy their requirements.
Perfumery, cosmetic, and toiletry products are subject to the requirements of the Food, Drug and Cosmetic Act, and the Fair Packaging and Labeling Act (FPLA), which are administered by the U.S. Food and Drug Administration. Questions regarding FDA requirements may be addressed to the U.S. Food and Drug Administration, Office of Cosmetics and Colors, 5100 Paint Branch Parkway, College Park, MD 20740-3835, telephone number (301) 436-1130, or by visiting their website at: www.fda.gov.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Paul Hodgkiss at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division