[Federal Register Volume 60, Number 221 (Thursday, November 16, 1995)]
[Proposed Rules]
[Pages 57558-57560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28253]
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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
