Country of Origin Marking

[[Page 57559]]

DEPARTMENT OF THE TREASURY

U.S. Customs Service

19 CFR Part 134

RIN 1515-AB82

Country of Origin Marking

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations to

ease the requirement that whenever words appear on an imported article

indicating the name of a geographic location other than the true

country of origin of the article, the country of origin marking always

must appear in close proximity to those words. Customs believes that,

consistent with the statutory requirements of 19 U.S.C. 1304, the

country of origin is only necessary to be in close proximity to the

name of the other geographic location on the imported article if the

name of the other geographic location may mislead or deceive the

ultimate purchaser as to the actual country of origin of the imported

article.

DATES: Comments must be received on or before January 16, 1996.

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

U.S. Customs Service, ATTN: Regulations Branch, Franklin Court, 1301

Constitution Avenue, NW., Washington, D.C. 20229 and may be inspected

at the Regulations Branch, 1099 14th Street, NW., Suite 4000,

Washington, D.C., between the hours of 9:00 a.m. and 4:30 p.m. on

regular business days.

FOR FURTHER INFORMATION CONTACT: Anthony Tonucci, Office of Regulations

and Rulings, 202-482-6980.

SUPPLEMENTARY INFORMATION:

Background

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 United States 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 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 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.

Section 134.46, Customs Regulations (19 CFR 134.46) provides that

in any case in which the words ``United States,'' or American,'' the

letters ``U.S.A.,'' any variation of such words or letters, or the name

of any city or locality in the United States, or the name of any

foreign country or locality other than the country or locality in which

the article was manufactured or produced, appear 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.

A strict application of Sec. 134.46 would require that in any case

in which a non-origin locality reference appears on an imported article

or its container, the actual country of origin of the article must

appear in close proximity and in comparable size lettering to the

locality reference preceded by the words ``Made in,'' ``Product of,''

or other words of similar meaning.

This document proposes to modify this regulation to reflect Customs

application of the regulation consistent with 19 U.S.C. 1304. In

practice, Customs has applied a less stringent standard in determining

whether the country of origin marking appearing on an imported article

or its container is acceptable. That is, Customs takes into account the

question of whether the presence of words or symbols on an imported

article or its container can mislead or deceive the ultimate purchaser

as to the actual country of origin of the article. Consequently, if a

non-origin locality reference appears on an imported article or its

container, Customs applies the special marking requirements of

Sec. 134.46 only if it finds that the reference may mislead or deceive

the ultimate purchaser as to the actual country of origin of the

imported article. If it is concluded that the non-origin locality

reference would not mislead or deceive an ultimate purchaser as to the

actual country of origin of the imported article, Customs policy is

that the special marking requirements of Sec. 134.46 are not triggered,

and the origin marking only needs to satisfy the general requirements

of permanency, legibility and conspicuousness under 19 U.S.C. 1304 and

19 CFR Part 134. This less stringent application is evidenced in

numerous Headquarters Customs Rulings.

For example, Customs has allowed a ``design/decoration'' exception

for not applying the special marking requirements of Sec. 134.46. In

Headquarters Ruling Letter (HQ) 732412 of August 29, 1989, Customs

considered whether jeans met the country of origin marking requirements

of Sec. 134.46. In that case, the jeans were labeled as follows:

``Kansas'' appeared on a fabric label attached to the rear right

pocket. ``Kansas Jean'' appeared on the rear pocket snaps.

``Kansas'' and ``Kansas Jeans Navy Wear'' were printed on a leather

label attached to the front right pocket. And a stylized ``K'' and

the words ``J. Kansas'' decorated the front button. The country of

origin of the jeans appeared on a fabric label sewn into the

waistband.

Noting that Customs often distinguished those special cases in which

the circumstances were such that reference to a place other than the

country of origin on an imported article would not confuse the ultimate

purchaser as to the true country of origin, i.e., design/decoration use

of locality name and finding that the country of origin marking was

conspicuous in that it appeared in a usual place, in lettering

sufficient to be easily found and read, Customs determined that the

United States references (``Kansas'') did not trigger the marking

requirements of Sec. 134.46. See also HQ 723604 of November 3, 1983, in

which ``USA'' letters on men's bikini-style swimming trunks did not

trigger the marking requirements of 19 CFR 134.46 because such marking

was used as a symbol or decoration and would not reasonably be

construed as indicating the country of origin of the article.

In HQ 733833 of February 19, 1991, however, Customs found that the

design/decoration exception to Sec. 134.46 was not applicable to the

letters ``USA'' printed alone next to the name ``Brittania'' on a

leather-like pouch affixed to a pair of jeans because it could

potentially mislead an ultimate purchaser and could be considered an

indication of origin rather than part of the design of the jeans, thus

triggering the special marking requirements of 19 CFR 134.46.

Section 134.46 was promulgated pursuant to the statutory authority

of 19 U.S.C. 1304(a)(2), which provides that the Secretary of the

Treasury may by regulations require the addition of any words or

symbols which may be appropriate to prevent deception or mistake as to

the origin of the article or as to the origin of any other article with

which such imported article is usually combined subsequent to

importation but before delivery to an ultimate purchaser.

[[Page 57560]]

Customs believes that the strict requirements of Sec. 134.46 are

not always necessary to ``prevent deception or mistake as to origin of

the article'' in accordance with 19 U.S.C. 1304. Accordingly, Customs

is proposing to modify Sec. 134.46 as set forth below.

Proposal

Customs proposes to amend Sec. 134.46 to reflect the fact that the

special marking requirements of Sec. 134.46 shall apply only if the

non-origin reference is likely to mislead or deceive the ultimate

purchaser as to the actual country of origin of the article.

This document also proposes to remove Sec. 134.36(b), Customs

Regulations (19 CFR 134.36(b)). This regulation provides that an

exception from marking shall not apply to any article or retail

container bearing any words, letters, names or symbols described in

Sec. 134.46 or Sec. 134.47 which imply that an article was made or

produced in a country other than the actual country of origin.

Since the special marking requirements of Sec. 134.46, as proposed

to be amended, would be triggered only when the marking appearing on an

imported article or its container is capable of misleading or deceiving

an ultimate purchaser as to the actual country of origin of the

article, Sec. 134.36(b) which serves the same purpose for the ultimate

purchaser would be redundant and no longer needed.

Comments

Before adopting this proposal, consideration will be given to any

written comments (preferably in triplicate) that are timely submitted

to Customs. All such comments received from the public pursuant to this

notice of proposed rulemaking 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

Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)) during regular

business days between the hours of 9:00 a.m. and 4:30 p.m. at the

Regulations Branch, 1099 14th Street, NW., Suite 4000, Washington, D.C.

Regulatory Flexibility Act

Based on the analysis set forth in the preamble, it is certified

under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) that the

proposed rule, if adopted, will not have a significant economic impact

on a substantial number of small entities. Accordingly, the rule is not

subject to the regulatory analysis requirements of 5 U.S.C. 603 and

604.

Executive Order 12866

This document does not meet the criteria for a ``significant

regulatory action'' as specified in E.O. 12866.

Drafting Information: The principal author of this document was

Janet L. Johnson, Regulations Branch, U. S. Customs Service.

However, personnel from other offices participated in its

development.

List of Subjects in 19 CFR Part 134

Customs duties and inspection, Labeling, Packaging and containers.

Proposed Amendments

It is proposed to amend Part 134, Customs Regulations (19 CFR Part

134), as set forth below.

PART 134--COUNTRY OF ORIGIN MARKING

1. The general authority citation for Part 134 would continue to

read as follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20,

Harmonized Tariff Schedule of the United States (HTSUS)), 1304,

1624.

2. It is proposed to amend Sec. 134.36 by revising its heading to

read ``Inapplicability of Marking Exception for Articles Processed by

Importer'', removing the designation and heading of paragraph (a) and

removing paragraph (b).

3. It is proposed to revise Sec. 134.46 to read as follows:

Sec. 134.46 Marking when name of country or locality other than

country of origin appears.

In any case in which the words ``United States,'' or ``American,''

the letters ``U.S.A.,'' any variation of such words or letters, or the

name of any city or location in the United States, or the name of any

foreign country or locality other than the country or locality in which

the article was manufactured or produced, appear on an imported article

or its container, which may mislead or deceive the ultimate purchaser

as to the actual country of origin of the article, 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.

Approved: September 6, 1995.

George J. Weise,

Commissioner of Customs.

Dennis M. O'Connell,

Acting Deputy Assistant Secretary of the Treasury.

[FR Doc. 95-28253 Filed 11-15-95; 8:45 am]

BILLING CODE 4820-02-P