Country of origin marking for one- to- two-ounce bottles of products such as hair shampoos and conditioners, body lotions, hand lotion, fabric wash products, mouthwash, etc. imported from Canada to be distributed by hotels; NAFTA marking; ultimate purchaser; 19 CFR 134.1(d); 19 CFR 134.32(d)

HQ 561318 April 26, 1999 MAR-02 RR:CR:SM 561318 RSD CATEGORY: MARKING Daniel G. Murray, Esq. Jamieson, Moore, Peskin & Spicer 300 Alexander Park Princeton, New Jersey 08543-5276 RE: Country of origin marking for one- to- two-ounce bottles of products such as hair shampoos and conditioners, body lotions, hand lotion, fabric wash products, mouthwash, etc. imported from Canada to be distributed by hotels; NAFTA marking; ultimate purchaser; 19 CFR 134.1(d); 19 CFR 134.32(d) Dear Mr. Murray: This is in response to your letter dated March 16, 1999, on behalf of Guest Supply, Inc. regarding the country of origin marking requirements for small bottles of personal care products imported from Canada that will be distributed by hotels. No samples of the products or shipping containers were submitted. FACTS: Guest Supply imports one- to two-ounce size bottles of personal care products such as hair shampoo and conditioners, hand and body lotions, bath gels, fabric wash products, and mouth wash from Canada. These products will be purchased by and used in hotels. Although not explicitly stated, we assume that these articles are provided free of charge to the hotel guests. You ask whether it is sufficient only to mark the cartons in which the bottles are shipped to the hotels with the products’ country of origin. In a telephone conversation with a member of my staff on March 26, 1999, you confirmed that the imported articles are all products of Canada. ISSUE: What is the country of origin marking requirements for the bottles of products described above which are imported from Canada for sale and distribution to hotels in the U.S.? 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 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. 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 were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlander & Co., 27 C.C.P.A. 297 at 302; C.A.D. 104 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. §1304. Section 134.1(b) Customs Regulations, defines “country of origin” as: the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. Section 134.1(j), Customs Regulations, provides that the “NAFTA Marking Rules” are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. A “good of a NAFTA country” is defined in 19 CFR 134.1(g) as an article for which the country of origin is Canada, Mexico, or the U.S. as determined under the NAFTA Marking Rules set out at 19 CFR Part 102. Section 134.1(d), Customs Regulations provides that the “ultimate purchaser” for a good of a NAFTA country is the last person in the U.S. who purchases the good in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. For a NAFTA good imported and distributed free of charge as a gift, the ultimate purchaser is the purchaser of the gift rather than the recipient of the gift. 19 CFR 134.1(d)(4). In this instance, we assume that the hotel will provide the small bottles of the various personal care products free of charge to its guests. Therefore, the hotels are the last parties to purchase the articles in the form in which they are imported, and under 19 CFR 134.1(d)(4) would be the ultimate purchasers. Pursuant to 19 U.S.C. §1304(a)(3)(D) and 19 CFR 134.32(d), an exception from individual marking is applicable where the marking of the container of an imported article will reasonably indicate the origin of the article. This exception is normally applied in cases where the imported article(s) is imported in a properly marked container and the ultimate purchaser in the U.S. will receive it in its original marked container. Accordingly, if Customs is satisfied that the articles will remain in their containers until they reach the ultimate purchaser and if the container is properly marked to indicate the country of origin of the article, the individual articles would be excepted from marking. Therefore, inasmuch as the hotels are the “ultimate purchasers” of the imported small bottles of personal care products, the individual bottles need not be marked, provided that the articles are imported and reach the hotels in containers or cartons which are properly marked with the country of origin of the personal care products, which in this case is Canada. HOLDING: The hotels are the ultimate purchasers of the one- and two- ounce bottles of personal care products described above. Accordingly, pursuant to 19 CFR 134.32(d), the individual bottles will be excepted from country of origin marking, provided the outermost container in which the articles are imported and in which they reach the hotels is marked with the country of origin. A copy of this ruling letter should be attached to the entry documents filed at the time the goods are 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