Country of origin marking of stainless steel pipe

HQ 561298 March 24, 1999 MAR-05 RR:CR:SM 561298 BLS CATEGORY: Marking Mr. Paul Goldfarb, Controller Flexmaster Canada Limited 20 West Pearce Street Richmond Hill, Ont. L4B 1E3 RE: Country of origin marking of stainless steel pipe Dear Mr. Goldfarb: We are responding to your letter dated February 18, 1999, requesting a ruling concerning the marking of ferritic stainless steel pipe that Flexmaster Canada Limited (“Flexmaster”) intends to export to the U.S. A sample of the pipe has been submitted. FACTS: Flexmaster produces ferritic stainless steel pipe in its Canadian plant from steel coils manufactured in the U.S. Under the NAFTA Marking Rules, the steel coil undergoes the requisite tariff shift as a result of the processing in Canada, and therefore, the country of origin of the pipe is Canada. Flexmaster intends to mark the pipe “Made in Canada” with a label which you believe is conspicuous, legible, indelible and permanent. You state that Flexmaster has used this type of labeling on previous models of the pipe, and these labels have remained affixed to the pipe and legible after many years of service. As a result, you believe that such marking meets Customs requirements as to proper country of origin marking. ISSUE: Whether the method of marking used to indicate “Canada” as the country of origin of the stainless steel pipe complies with the requirements of 19 U.S.C. 1304. LAW AND ANALYSIS:  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 U.S. 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 - 2 - the U.S. 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 is the product. "The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods are produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlaender & Co, v. United States, 27 C.C.P.A. 297 at 302 (1940). Special country of origin marking requirements apply to certain pipe and pipe fittings. Under 19 U.S.C. 1304(c)(1), pipes of iron, steel, or stainless steel, and pipe fittings of steel, stainless steel, chromemoly steel, or cast and malleable iron are required to be marked with the country of origin by means of die stamping, castinmold lettering, etching, engraving, or continuous paint stenciling. One of these five prescribed methods must be used to mark the article, unless, because of its nature, it is technically or commercially infeasible to do so. In such case, the article may be marked by an equally permanent method of marking or, in the case of small diameter pipe, tube, and fittings, by tagging the containers or bundles. See 19 U.S.C. 1304(c)(2). Small diameter products include fittings that have a nominal diameter of onefourth inch or less and pipes with an inner diameter of 1.9 inches or less. (See T.D. 8615 dated February 5, 1986, 51 Fed. Reg 24.) As these requirements are congressionally mandated, Customs has no authority to allow a different method of marking. In the instant case the stainless steel pipe is not “small diameter” pipe and there is no indication that it is technically or commercially infeasible to mark the pipe by one of the five statutory methods of marking prescribed under 19 U.S.C. 1304(c)(1). Therefore, the steel pipe must be marked by one of the five statutorily prescribed methods. HOLDING: Ferrite stainless steel pipe is subject to the special marking requirements set forth in 19 U.S.C. 1304(c)(1), and must be marked with Canada as the country of origin by means of die stamping, castinmold lettering, etching, engraving, or continuous paint stenciling. As the proposed marking does not conform to any of the five statutorily prescribed methods of marking, it does not satisfy the special marking requirements under 19 U.S.C. 1304(c)(1).  - 3 - A copy of this ruling 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