Receipt of Domestic Interested Party Petition Concerning Country of Origin Marking for Cast Iron Soil Pipe

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 175

Receipt of Domestic Interested Party Petition Concerning Country

of Origin Marking for Cast Iron Soil Pipe

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Notice of receipt of domestic interested party petition;

solicitation of comments.

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SUMMARY: Customs has received a petition filed on behalf of domestic

interested parties concerning the country of origin marking

requirements for cast iron soil pipes used primarily to convey waste

water. Currently, Customs has permitted the importation of such pipes

if they are marked to indicate their country of origin by cast-in-mold

letters on the lips or edges or hubs of the pipes. The petition

requests that Customs adopt a new rule under which the marking of all

cast iron soil pipes would have to appear on the barrel of the pipe by

paint stenciling in order to be considered conspicuous and legible and

in compliance with the special marking requirements for pipes and tubes

set forth at 19 U.S.C. 1304(c). Public comment is solicited regarding

the application of these marking requirements to imported cast iron

soil pipe.

DATES: Comments must be received on or before 60 days from the date of

publication in the Federal Register.

ADDRESSES: Comments (preferably in triplicate) may be submitted to the

U.S. Customs Service, Regulations Branch, Office of Regulations and

Rulings, 1301 Constitution Avenue, NW., (Franklin Court), Washington,

DC. 20229. Comments may be viewed at the Office of Regulations and

Rulings, Franklin Court, 1099 14th Street, NW., suite 4000, Washington,

DC.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Dinerstein, Value and

Marking Branch, Office of Regulations and Rulings, U.S. Customs Service

(202) 482-7010.

SUPPLEMENTARY INFORMATION:

Background

Pursuant to section 516, Tariff Act of 1930, as amended (19 U.S.C.

1516), and part 175, Customs Regulations (19 CFR part 175), a domestic

interested party may challenge certain decisions made by Customs

regarding imported merchandise which is claimed to be similar to the

class or kind of merchandise manufactured, produced, or wholesaled by

the domestic interested party. This document provides notice that

domestic interested parties are challenging a marking decision made by

Customs.

The petitioners are The American Brass & Iron Foundry and Charlotte

Pipe and Foundry Company. Both of these entities are domestic

interested parties within the meaning of section 516(a)(2), Tariff Act

of 1930, as amended (19 U.S.C. 1516(a)(2)).

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 is the

product.

Section 207 of the Trade and Tariff Act of 1984, (Pub. L. 98-573),

amended 19 U.S.C. 1304 to require, without exception, that all pipe,

tube, and pipe fittings of iron or steel be marked to indicate the

proper country of origin by means of die stamping, cast-in-mold

lettering, etching or engraving. 19 U.S.C. 1304(c). In 1986, Congress

enacted Public Law 99-514 which amended 19 U.S.C. 1304(c) to authorize

alternative methods of marking if, because of the nature of an article,

it is technically or commercially infeasible to mark by one of the four

prescribed methods. The amendment, codified at 19 U.S.C. 1304(c)(2),

provides that in such case, ``the article may be marked by an equally

permanent method of marking such as paint stenciling or in the case of

small diameter pipe, tube, and fittings, by tagging the containers or

bundles.''

The petitioners contend that in order for the marking of the

imported pipes to be considered conspicuous and legible and be in

accordance with 19 U.S.C. 1304(c), they must be marked on their barrels

by paint stenciling. Customs presently has no requirement for cast iron

soil pipe to be marked in any particular location or that any method

other than those specified in 19 U.S.C. 1304(c) be used to mark the

pipe. Customs has allowed cast iron pipe to be marked on its side or

lip with cast-in-mold letters. Counsel for the petitioners maintains

that such marking is not conspicuous or legible and therefore is not in

compliance with the requirements of the 19 U.S.C. 1304. It is alleged

that the ultimate purchasers of the soil pipe, general contractors or

plumbing subcontractors, are usually unable to determine the country of

origin of the pipe because the marking is not conspicuous or legible.

Petitioners have furnished several letters and statements from plumbing

contractors attesting that it is important for them to know the country

of origin of the soil pipe they install, but often they are unable to

tell its country of origin.

Counsel for the petitioners contends that it is not technically and

commercially feasible to conspicuously and legibly mark cast iron soil

pipes by any of the four methods mentioned in 19 U.S.C. 1304(c)(1).

Accordingly, petitioners argue that Customs should apply 19 U.S.C.

1304(c)(2) and require that cast iron soil pipes be marked by paint

stenciling.

Previously, the petitioners requested a ruling on whether a sample

soil pipe was legally marked. The marking was on the side or lip or hub

of the pipe in cast-in-mold letters. Customs concluded that the marking

was sufficiently conspicuous and legible to satisfy the requirements of

19 U.S.C. 1304 and that marking duties should not be assessed against

entries of this merchandise. (Headquarters Letter 734818, March 31,

1993.) Petitioners believe that this determination is incorrect and

challenge it. They claim that because the country of origin marking is

at the end of the pipe, it is hard to find and in a location where

users of the pipes do not expect to find such information. It is

further represented that it is the American pipe industry's practice to

put the important information about pipes on their barrels. The

petitioners also point out that the markings are difficult to read

because of the small surface area at the end of the pipes, the minimal

thickness of the raised lettering, lack of color contrast, and because

often a tar coating covers the lettering. The petition also states that

the pipes are often stored in large stacks and that the ultimate

purchaser would have to lift the end of each pipe to examine the

marking, but this is usually not feasible because the pipes are heavy

and delivered in large quantities.

We invite comments from the public as to whether marking on

imported cast iron soil pipes by cast-in-mold letters on the side of

pipe is sufficiently conspicuous and legible to satisfy the

requirements of 19 U.S.C. 1304. We also seek comments as to whether the

pipes can be conspicuously and legibly marked through one of the four

methods mentioned in 19 U.S.C. 1304(c)(1), or if paint stenciling on

the barrel of the pipe must be used to achieve a conspicuous and

legible marking.

Comments

Pursuant to Sec. 175.1(a), Customs Regulations (19 CFR 175.21(a)),

before making a determination on this matter, Customs invites written

comments from interested parties. The petition of the domestic

interested party, as well as all comments received in response to this

notice, will be available for public inspection in accordance with the

Freedom of Information Act (5 U.S.C. 552), Sec. 1.4, Treasury

Department Regulations (31 CFR 1.4) and section 103.11(b), Customs

Regulations (19 CFR 103.11(b)) on regular business days between the

hours of 9 a.m. and 4 p.m. at Regulations Branch, suite 4000, Franklin

Court, 1099 14th Street, NW., Washington, DC 20229. Appointments to

inspect the petition and comments can be made by contacting the

Regulations Branch at 202-482-6970.

Authority

This notice is published in accordance with Sec. 175.21(a), Customs

Regulations (19 CFR 175.21(a)).

Drafting Information

The principal drafter of this document was Mr. Robert Dinerstein,

Value and Marking Branch, U.S. Customs Service. Personnel from other

Customs offices participated in its development.

George J. Weise,

Commissioner of Customs.

Approved: February 11, 1994

John P. Simpson,

Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).

[FR Doc. 94-5262 Filed 3-7-94; 8:45 am]

BILLING CODE 4820-02-P