MAR-2 OT:RR:NC:N3:349

Mr. Scott Hoffman
Trans American, CHB
4902 North America Drive
Buffalo, NY 14224

RE: THE COUNTRY OF ORIGIN MARKING OF CARPETS; 19 CFR 134.46; ACCEPTABLE WORDING

Dear Mr. Hoffman:

This is in response to your letter dated November 1, 2018, requesting a ruling on whether any of the proposed markings: “COUNTRY OF ORIGIN CHINA; DESIGNED, PROCESSED AND PACKAGED IN CANADA”; “COUNTRY OF ORIGIN CHINA; PROCESSED IN CANADA” or “COUNTRY OF ORIGIN CHINA, FINISHED IN CANADA” are acceptable country of origin marking for imported needle punched floor coverings. This ruling request was submitted on behalf of your client, Multy Home LP. A marked sample was not submitted with your letter for review.

The floor coverings made from needle punched felt in China are imported into Canada. In Canada, a design is created for an embossing mold and the mold is produced. The carpet is then embossed with the design, cut to size and packaged for sale. Following the country of origin rules for textile products set forth in Section 102.21, Customs Regulations (19 CFR Section 102.21), the country of origin of the carpet is China.

The marking statute, section 304, 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 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, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlander & Co., 27 C.C.P.A. 297 at 302; C.A.D. 104 (1940).

Section 134.46, Customs Regulations (19 CFR 134.46), contains more restrictive marking requirements designed to alleviate the possibility of misleading an ultimate purchaser with regard to the country of origin of an imported article. Specifically, 19 CFR 134.46 requires that, in instances where the name of any city or locality in the U.S., or the name of any foreign country or locality other than the name of the country or locality in which the article was manufactured or produced, appears on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," "Product of," or other words of similar meaning. Customs has ruled that in order to satisfy the close proximity requirement, the country of origin marking must appear on the same side(s) or surface(s) in which the name of the locality other than the country of origin appears (See HQ 708994, dated April 24, 1978).

Marking the rolls of carpet with “COUNTRY OF ORIGIN CHINA” in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit will satisfy the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. For purposes, of 19 CFR 134.46, this office feels that “COUNTRY OF ORIGIN CHINA” has similar meaning to either “MADE IN CHINA” or “PRODUCT OF CHINA” in conveying the origin of the good. Additionally, we note CBP has previously allowed the phrases “DESIGNED IN,” “FURTHER PROCESSED IN,” “FINISHED IN” and “PACKAGED IN” when used in conjunction with country of origin information provided the phrases accurately reflect the work performed and the requirements of Section 134.46 are met. HQ 559886, HQ 560195, HQ H014657 and HQ 735085, respectively, noted.

The proposed marking of the above described imported carpets with either “COUNTRY OF ORIGIN CHINA; DESIGNED, PROCESSED AND PACKAGED IN CANADA” or “COUNTRY OF ORIGIN CHINA; PROCESSED IN CANADA” is not an acceptable marking for the finished carpets. You indicate in your submission that only the designs for the embossing mold are created in Canada; not that the entire carpet was designed in Canada. Therefore, it would be misleading to state that the carpet was designed in Canada. Additionally, while this office believes “FURTHER PROCESSED IN CANADA” would comply with the marking requirements, “PROCESSED IN CANADA,” as included in the above statements, does not accurately indicate the extent of the work performed in Canada.

Finally, the proposed marking of the above described imported carpets with “COUNTRY OF ORIGIN CHINA, FINISHED IN CANADA,” will satisfy the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and would be acceptable country of origin marking for the finished carpets.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Kim Wachtel at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division