Country of Origin Marking Requirements for Wearing Apparel

DEPARTMENT OF THE TREASURY

Customs Service

Country of Origin Marking Requirements for Wearing Apparel

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

ACTION: Notice of withdrawal of proposed change of practice.

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SUMMARY: This notice advises the public that Customs is withdrawing its

proposed change of practice regarding the country of origin marking of

wearing apparel. As provided in T.D. 54640(6), wearing apparel, such as

shirts, blouses, coats, sweaters, etc., must be marked with the name of

the country of origin by means of a fabric label or label made from

natural or synthetic film, sewn or otherwise permanently affixed on the

inside center of the neck midway between the shoulder seams or in that

immediate area, or otherwise permanently marked in that area in some

other manner. Button tags, string tags and other hang-tags, paper

labels, and other similar methods of marking will not be acceptable.

EFFECTIVE DATE: Withdrawal effective April 7, 1997.

FOR FURTHER INFORMATION CONTACT: Monika Rice, Special Classification &

Marking Branch, Office of Regulations & 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 a 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.

A proposed change of practice was published in the Federal Register

(60 FR 57621) on November 16, 1995, advising the public that Customs

intended to review the country of origin marking of certain wearing

apparel. By T.D. 54640(6), 93 Treas. Dec. 301 (1958), Customs requires

wearing apparel, such as shirts, blouses, coats, sweaters, etc., to be

legibly and conspicuously marked with the name of the country of origin

by means of a fabric label or label made from natural or synthetic

film, sewn or otherwise permanently affixed on the inside center of the

neck midway between the shoulder seams or in that immediate area, or

otherwise permanently marked in that area in some other manner. Button

tags, string tags and other hang-tags, paper labels and other similar

methods of marking are not considered acceptable.

The proposed change of practice, if adopted, would have modified

that portion of T.D. 54640(6) relating to the requirement of a fabric

label or label made from natural or synthetic film sewn to the article,

and the disallowance of button tags, string tags and other hang-tags,

paper labels and other similar methods of marking. Rather, it was

proposed to evaluate the country of origin marking of wearing apparel,

such as shirts, blouses, coats, sweaters, etc., on a case-by-case basis

to determine if it is conspicuous, legible, indelible, and permanent to

a degree sufficient enough to remain on the shirt until it reaches the

ultimate purchaser.

The notice of the proposed change of practice arose from a ruling

request dated June 1, 1994, concerning the country of origin marking on

a man's football shirt which featured a woven textile label, identified

as a ``jock tag,'' 2 inches long by 4\1/2\ inches wide, stitched on the

exterior right-hand side of the shirt, approximately 2 inches above the

bottom hem and 1 inch from the side seam. Embroidered on the left side

of this label in red and blue threads on a white background was a

stitched logo and trade name. The size of the garment, care

instructions, the country of origin, and RN number were stitched on the

right side of the label in bright blue lettering on a light background.

The inquirer requested that Customs allow the use of a hang-tag in the

center of the neck midway between the shoulder seams to indicate the

country of origin of the shirt, rather than require

[[Page 16645]]

a sewn-in label since the woven textile label on the outside of the

shirt satisfies the conspicuous, legible, indelible, and permanent

requirements of 19 U.S.C. 1304.

Customs has provided an exception to the sewn-in label requirement

of T.D. 54640(6) only in the context of reversible garments. By T.D.

55015(4), 95 Treas. Dec. 3 (1960), the country of origin marking of

reversible garments was permitted to be looped around a hanger. On the

basis of this extension, Customs has allowed ladies' reversible jackets

to be marked with a cardboard hang-tag affixed to the neck area by

means of a plastic anchor tag. Customs noted that since the jacket was

reversible, a fabric label sewn into the jacket could damage the jacket

when the label was removed. See Headquarters Ruling Letter (HRL) 731513

dated November 15, 1988. Similarly, in HRL 733890 dated December 31,

1990, Customs allowed women's reversible silk tank tops to be marked

with a cloth label, showing the country of origin and other pertinent

information sewn into a lower side seam, and a hang-tag which also

provided the required information attached at the neck. See also HRL

734889 dated June 22, 1993.

Upon request, an extension of time to March 15, 1996, within which

to submit comments on the proposal was granted, and a notice to that

effect was published in the Federal Register (61 FR 3763) on February

1, 1996.

Analysis of Comments

Seventeen comments were received in response to the notice; seven

favored the change of practice, ten opposed. Supporters of the change

stated their belief that a more flexible approach, other than only

allowing a sewn-in label, will be consistent with the conspicuous and

permanent requirements of 19 U.S.C. 1304. Several commenters stated

that, as with sewn-in labels, other marking methods would have to be

permanently affixed to the garment sufficient enough to remain on the

article until it reaches the ultimate consumer. Some supporters stated

that hang-tags display the country of origin more conspicuously than

sewn-in labels, and compliance costs would decrease if sewn-in labels

were not required.

Several commenters alleged that the use of sewn-in labels has not

discouraged unlawful behavior, and a company determined to misrepresent

the true country of origin will simply sew in false labels. Supporters

also stated that hang-tags withstand normal commercial and retail

handling. These commenters also alleged that sewn-in labels irritate

the consumer's neck, and that the garment may be damaged when the label

is removed from the garment. The supporters also noted that the Federal

Trade Commission country of origin requirement (16 CFR 303.15) does not

require a sewn-in label. One commenter also stated that under NAFTA and

the Uruguay Round Agreements Act, the U.S. made commitments to achieve

global harmonization in labeling regulations, and the use of other

means other than a sewn-in label would facilitate cross-border trade

and just-in-time deliveries. However, while supporters favored a more

flexible approach, several commenters suggested that rather than a

case-by-case evaluation, Customs should establish clear standards as to

acceptable alternatives to sewn-in labels.

All of the comments opposing the proposal alleged that methods of

marking, other than sewn-in labels, will make it easier to transship

garments and misrepresent the true country of origin by changing the

label without damaging the garment. The easiest method of discovering

transshipments is claimed to either be an incorrect country of origin

label, a missing country of origin label, or a damaged country of

origin label. One commenter stated that the reason for section 334 of

the Uruguay Round Agreements Act (codified at 19 U.S.C. 2592) is to

improve the ability to track and investigate illegal transshipments,

especially in circumstances where assembly confers origin and the

country of origin label is sewn into the good in the country of

assembly.

Some of the opposing commenters also stated that the use of hang-

tags, paper labels, or other markings not permanently attached will not

satisfy the requirements of 19 U.S.C. 1304 that the country of origin

marking shall be in a conspicuous place as legibly, indelibly, and

permanently as the nature of the article will permit. Another commenter

stated that consumers know and have expected for 40 years that the care

label shows the country of origin. Some commenters stated that hang-

tags are often lost during packing and shipping, when garments are

tried on, when hangers are switched or not used, or are discarded at

the point of sale by sales people who see little or no need for them

and may even see them as a deterrent to a sale. Finally, one commenter

stated that there would be less concern over the proposed modification

of T.D. 54640(6) if permanent country of origin markings were required

for articles made in the U.S.

Withdrawal of Proposed Change of Practice

Customs has determined, after reviewing all of the comments and

upon considering all factors, that the requirement imposed by T.D.

54640(6) shall remain in effect. As required by 19 CFR 134.41, the

degree of permanence should be at least sufficient to insure that in

any reasonably foreseeable circumstance the marking shall remain on the

article until it reaches the ultimate purchaser unless it is

deliberately removed. All of the commenters in opposition to hang-tags

have warned against the deliberate removal of hang-tags. While

supporters claim that hang-tags remain on an article until it reaches

the ultimate purchaser and that any misrepresentation of the true

country of origin usually occurs at the time of assembly, it is

Customs' opinion that because of the long-standing expectations by

importers and ultimate purchasers that the country of origin marking

will be found at the center of the neckline on a sewn-in label, the

requirements of T.D. 54064(6) should remain in effect without

modification. Accordingly, the subject proposed change of practice is

withdrawn.

Therefore, wearing apparel, such as shirts, blouses, coats,

sweaters, etc., must be marked with the name of the country of origin

by means of a fabric label or label made from natural or synthetic

film, sewn or otherwise permanently affixed on the inside center of the

neck midway between the shoulder seams or in that immediate area, or

otherwise permanently marked in that area in some other manner. Button

tags, string tags and other hang-tags, paper labels, and other similar

methods of marking will not be acceptable. While Customs has allowed

and will continue to allow, due to exigent circumstances, various

exceptions from the required location of the sewn-in label, no

exception from the sewn-in (permanently affixed) labeling requirement

imposed by T.D. 54640(6) will be granted, other than the one allowed

under T.D. 55015(4), and proposals for further exceptions from T.D.

54640(6) will not be evaluated on a case-by-case basis.

George J. Weise,

Commissioner of Customs.

Approved: March 5, 1997.

Dennis M. O'Connell,

Acting Deputy Assistant Secretary of the Treasury.

[FR Doc. 97-8774 Filed 4-4-97; 8:45 am]

BILLING CODE 4820-02-P