Country of Origin Marking Requirements for Watches

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 134

RIN 1515-AB68

Country of Origin Marking Requirements for Watches

AGENCY: Customs Service, Department of Treasury.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: This document provides advance notice of a proposal to amend

the Customs Regulations to prescribe specific rules regarding the

country of origin marking of watches to ensure that the marking is

conspicuous and legible. The purpose of this document is to assist in

determining whether a rulemaking is needed to ensure a uniform standard

for conspicuous and legible country of origin marking for watches, and

if needed, the contents of that rulemaking.

DATES: Comments must be received on or before May 4, 1995.

ADDRESSES: Written comments (preferably in triplicate) may be addressed

to the Regulations Branch, Office of Regulations and Rulings, U.S.

Customs Service, Franklin Court, 1301 Constitution Ave., NW.,

Washington, DC. 20229. Comments submitted may be inspected at the

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

Service, Franklin Court, 1099 14th Street, Suite 4000, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Burton Schlissel, Special

Classification and Marking Branch, 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 (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 manner as to indicate

to the ultimate purchaser in the U.S. the English name of the country

of origin of the article. Part 134, Customs Regulations (19 CFR part

134), implements the country of origin marking requirements and

exceptions of 19 U.S.C. 1304. Under Sec. 134.41(b), Customs Regulations

(19 CFR 134.41(b)), a country of origin marking is considered

conspicuous if the ultimate purchaser in the United States is able to

find the marking easily and read it without strain.

It has come to the attention of the Customs Service that over the

years watches have been imported into the United States with very tiny

country of origin markings. Usually these markings are in very small

letters on the bottom of the dial (face) of the watch. Generally, these

markings are exceptionally difficult to find and read. In fact, the

country of origin markings on many watches are so tiny that a

magnifying glass is needed in order to read them. Country of origin

markings on watches which are so difficult to find and read

[[Page 14706]] are not conspicuous or legible and are not acceptable

country of origin marking under 19 U.S.C. 1304. Customs is reviewing

its policy to ensure that the country of origin marking on watches is

legible and conspicuous.

On March 10, 1993, Customs published a general notice in the

Customs Bulletin and Decisions (27 Cust. Bull. Vol. 10, p. 31)

indicating that Customs did not intend to permit the continued

importation of watches into the United States unless they were

conspicuously and legibly marked with their country of origin. The

document further indicated that Customs was proposing stricter

enforcement of conspicuous country of origin marking requirements for

watches. Customs requested comments on proposed stricter enforcement

and when the stricter enforcement should go into effect. On May 5,

1993, Customs extended the comment period in a document published in

the Customs Bulletin and Decisions (27 Cust. Bull. Vol. 18, p. 13). The

comment period closed on June 9, 1993. While Customs has concluded that

there should be stricter enforcement of what is legible and conspicuous

regarding the country of origin marking requirements for watches on a

case-by-case basis, Customs is now considering an amendment to the

Customs Regulations incorporating such standards in order to ensure a

uniform standard for conspicuous and legible country of origin marking

for watches.

Factors Which May Be the Subject of a Notice of Proposed Rulemaking in

Connection With Specific Country of Origin Marking of Watches

The Customs Service is considering issuing a notice of proposed

rulemaking to amend the Customs Regulations to prescribe specific rules

regarding the country of origin marking of watches. It is noted that

the special marking requirements of U.S. Note 4, chapter 91, Harmonized

Tariff Schedules of the United States (HTSUS), that are applicable to

watches are not the subject of this advance notice of proposed

rulemaking. Among the factors which may be the subject of the proposed

rules are the size of the marking, the location of the marking, whether

the marking stands out, and the legibility of the marking.

Size and Legibility of Marking

Generally, in determining whether a watch is marked properly,

Customs considers, on a case-by-case basis, whether the marking is

legible and conspicuous. Customs believes that a marking on a watch

which has a type size of 3 points is acceptable. (A point is a unit of

measurement approximately equal to 0.01384 inches or nearly \1/72\ inch

and all type sizes are multiples of this unit.) Whether the marking

stands out is dependent on where it appears in relationship to the

other print on the watch and whether it is in contrasting letters to

the background. The legibility of the marking is determined by the

clarity of the letters and whether the ultimate purchaser is able to

read the letters of the marking without strain. Whether a particular

marking meets the conspicuous requirement of 19 CFR 134.41 and 19 U.S.C

1304 will depend on a combination of these factors.

Location and Method of Marking

The marking should be in a location where the ultimate purchaser

could expect to find the marking or where he/she could easily notice it

from a casual inspection. Although traditionally the country of origin

marking has appeared on the dial (face) of a watch, there is no

requirement that the marking appear in that location.

The marking may also appear on the back of the watch case, unless

the watch is or will be packaged for retail sale in a manner which

would prevent the ultimate purchaser from seeing the marking before

buying the watch.

In addition, the country of origin marking can be done through a

variety of different methods such as die stamping, etching, engraving,

or by using a sticker or hang tag. Any method of marking is sufficient

as long as it is permanent enough to ensure that the marking will stay

on the watch through normal handling until it reaches the ultimate

purchaser. No matter where the marking appears or what method of

marking is used, the marking must be large enough and sufficiently

clear so that the ultimate purchaser of the watch can easily find it

and read it with the unaided eye.

Whether a Notice of Proposed Rulemaking With Regard to Specific Country

of Origin Marking of Watches Should Be Issued: Specific Issues for

Consideration

Customs is requesting interested parties to submit comments

regarding specific standards which would ensure that the country of

origin marking on watches is legible, conspicuous, and permanent.

Relevant comments were received in response to the general notice

published in the Customs Bulletin and Decisions (27 Cust. Bull., Vol.

10, p. 31.) However, in addition to comments regarding the nature of

specific standards, interested parties are also invited to comment on

the following issues before Customs decides whether to propose

rulemaking on this matter:

(1) Is there a need for Customs to initiate a proposed rulemaking

regarding country of origin marking of watches or should questions of

whether watches are marked properly continue to be determined on a

case-by-case basis?

(2) Whether there are current abuses in the country of origin

marking of imported watches.

(3) Whether Customs should prescribe, by regulation, certain type

size and style specifications for the country of origin marking of

watches. If so, whether the regulations should specify one type size

for all watches, or different type sizes depending upon the size of the

watch. If one type size is prescribed for all watches, what type size

should be recommended and why?

(4) Whether consumer behaviors and attitudes toward country of

origin marking of watches can be documented with studies or surveys. If

so, how much time would be needed for a study or survey to be conducted

and for the data to be analyzed?

(5) If Customs goes forward with a notice of proposed rulemaking,

what should be a sufficient period of time for public comment?

(6) If Customs issues a notice of proposed rulemaking, should a

public hearing be held in connection with such proposed rulemaking?

(7) If Customs proposes and adopts new country of origin marking

regulations, what would be an appropriate time frame between the

publication of the final rule and the effective date of such

regulations?

(8) What other issues should be addressed in the proposed

rulemaking in order to afford a full opportunity for public comment?

Comments

In order to assist Customs in determining whether to proceed with a

notice of proposed rulemaking to prescribe rules regarding the country

of origin marking for watches, and the appropriate type size and style

specifications for such marking, this notice invites written comments

on the issues raised in this document as well as any other issues in

connection with this matter. Comments which were previously submitted

in response to the general notice published in the Customs Bulletin and

Decisions need not be resubmitted, as they will be fully considered in

any final determination in this matter.

Comments submitted will be available for public inspection in

accordance with [[Page 14707]] 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)), on regular

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

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

Service, 1099 14th Street, NW., Suite 4000, Washington, DC.

Approved: February 24, 1995

Michael H. Lane,

Acting Commissioner of Customs.

Dennis M. O'Connell,

Acting Deputy Assistant Secretary of the Treasury.

[FR Doc. 95-6760 Filed 3-17-95; 8:45 am]

BILLING CODE 4820-02-P