Country of origin marking of imported toilet preparations ; repackaging; gift baskets; 19 CFR 134.26; 19 CFR 134.46

HQ 561284 May 7, 1999 MAR-2-05 RR:CR:SM 561284 KSG CATEGORY: Marking Brian Kavanaugh A.N. Deringer, Inc. 173 W. Service Road Champlain, NY 12919 RE: Country of origin marking of imported toilet preparations ; repackaging; gift baskets; 19 CFR 134.26; 19 CFR 134.46 Dear Mr. Kavanaugh: This is in reference to your letter of February 2, 1999, requesting a binding ruling on behalf of Delagar Division Belcam Inc., on the country of origin marking of imported toiletries that are repackaged into gift baskets or boxes. A sample gift basket was submitted. FACTS: Your client, Delagar Division Belcam Inc., imports various toilet preparations which it combines and repacks in baskets or boxes in the U.S. The articles are imported with the country of origin marking on the bulk package but the articles are not individually marked. You state that the gift baskets and boxes will have a label attached that clearly indicates the country of origin of the assorted imported articles. The sample is a gift basket that contains a bar of soap, a bath cube, three bath oil pearls, lotion and body wash. The label glued to the bottom of the basket states “Basket made in China. Cube made in England. Lotion made and filled in Canada.” There is also a U.S. address, a Canadian address, and an address in the Netherlands for Delagar on the same label. ISSUE: Whether the imported toiletry articles that are repackaged in the U.S. are excepted from individual country of origin marking. LAW AND ANALYSIS: Section 304 of the Tariff Act of 1930 (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 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 of 19 U.S.C. 1304. Section 134.32(d), Customs Regulations (19 CFR 134.32(d)), excepts an article from marking where the marking of its container will reasonably indicate the origin of the article. Foreign articles imported in properly marked containers which are to be repackaged in the U.S. are subject to the certification requirements set forth in 19 CFR 134.26. The purpose of 19 CFR 134.26 is to ensure that the new container in which the article is repacked contains the country of origin of the article. See Headquarters Ruling Letter (“HRL”) 560266, dated January 17, 1997. Section 134.26, Customs Regulations (19 CFR 134.26), provides in pertinent part that: If an imported article subject to these requirements is intended to be repacked in retail containers...after its release from Customs custody, or if the port director having custody of the article, has reason to believe that such article will be repacked after its release, the importer shall certify to the port director that: (1) If the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new container shall be marked to indicate the country of origin of the article in accordance with the requirements of this part.... Therefore, this procedure may be used if the foreign toiletries are imported in properly marked bulk containers and are repacked in properly marked baskets or boxes. If the articles are not imported in properly marked bulk containers and the articles are not individually marked, then the procedures of 19 CFR 134.34(a) shall be used. Since the label contains various addresses for Delagar, the second issue is whether the special marking requirements set forth at 19 CFR 134.46 are triggered. Section 134.46, Customs Regulations (19 CFR 134.46), as amended by T.D. 97-72 (published in the Federal Register on August 20, 1997, (62 FR 44211)), provides: 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, and those words, letters or names 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. With regard to the sample submitted in this case, there are three addresses on the label; two foreign and one U.S. address. We find that these addresses may mislead or deceive the ultimate purchaser as to the actual country of origin of the various imported articles. Therefore, the requirements of 19 CFR 134.46 are triggered. However, with regard to the sample, these special requirements are satisfied by the country of origin marking that appears in large legible letters and in close proximity to the addresses. The phrase “made in” is included in the marking. However, we note that the sample in this case may not be properly marked in that it only identifies the country of origin of three of the six articles contained in the basket. The label on the basket must identify the country of origin of all the imported foreign articles. We cannot determine from the information submitted if the three articles whose origin is not indicated on the label are made in the U.S. or abroad. You state that the imported articles are exempt from marking by the Food, Drug and Cosmetic Act. This law is not within the jurisdiction of the Customs Service and is not relevant to a determination of the marking requirements set forth at 19 U.S.C. 1304. You also state that the articles would be exempt from marking in Canada. This is also not relevant to a consideration of the marking requirements under U.S. law. HOLDING: If the foreign toiletries are imported in properly marked bulk containers and are repackaged in the U.S. in properly marked baskets or boxes, the toiletires may be excepted from individual marking pursuant to 19 CFR 134.32(d), provided the certification requirements of 19 CFR 134.26 are satisfied. A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, John Durant, Director Commercial Rulings Division