Country of origin marking of Swatch watches; special markingrequirements for watches; special marking of the watch case;Additional U.S. Note 4 of Chapter 91, Harmonized Tariff Scheduleof the United States; 19 CFR 134.43(b)

HQ 734589 July 22, 1992 MAR-05 CO:R:C:V 734589 RSD CATEGORY: MARKING Patricia A. Haleman Import and Export Manager SMH (US) INC. 1817 William Penn Way Lancaster, Pennsylvania 17604 RE: Country of origin marking of Swatch watches; special marking requirements for watches; special marking of the watch case; Additional U.S. Note 4 of Chapter 91, Harmonized Tariff Schedule of the United States; 19 CFR 134.43(b) Dear Ms. Haleman: This is in response to your letter of March 19, 1992, addressed to the Area Director at the New York Seaport regarding the country of origin marking requirements for a Swatch brand wrist watch. Your letter was forwarded to Customs Headquarters for response. A sample of the watch in question accompanied your submission. FACTS: The submitted sample is a Swatch brand wrist watch with a mechanical display, made in Switzerland. It is an automatic winding watch with twenty-three jewels. The watch has a clear plastic case. The watch movement is visible through the back of the transparent case . In the lower right section of the dial (face) of the watch the word "Swiss" is printed in white letters against a blue background. Immediately above the country of origin marking the word "Swatch" is also printed in slightly larger white letters. The movement is marked by engraving with "SWISS 23 TWENTY THREE JEWELS" in a circular fashion. The back of the clear plastic case contains no markings. The leather watch band is marked "MADE IN FRANCE". The sample watch was submitted to us in a clear plastic container, which is apparently how it is to be marketed. This container is marked "SWISS MADE" in white letters against clear plastic. You argue that because the movement is marked with the manufacturer's name and the country of manufacture (which is the same as the country of manufacture of the watch case) and that the marking are visible through the clear plastic case, the special marking requirements for watch cases should not apply. ISSUE: Can a watch case be excepted from the special marking requirements for watches if the case is transparent and the special markings on the movement are visible? 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 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. Friedlaender & Co., 27 C.C.P.A. 297 at 302 (1940). Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.43(b), Customs Regulations (19 CFR 134.43(b)), in conjunction with section 11.9, Customs Regulations (19 CFR 11.9), provides that watches must be marked in accordance with the special marking requirements set forth in Chapter 91, Additional U.S. Note 4 of the Harmonized Tariff Schedule of the United States (HTSUSA) (19 U.S.C. 1202). This note requires that any watch movement, or case provided for in the subpart, whether imported separately or attached to any article provided for in the subpart, shall not be permitted to be entered unless conspicuously and indelibly marked by cutting, die-sinking, engraving, or stamping or mold-marking (either indented or raised), as specified in the provisions of this note. This language is mandatory. Section (a) of Note 4 requires that watch movements shall be marked on one or more of the bridges or top plates to show the name of the country of manufacture; the name of the manufacturer or purchaser; and, in words, the number of jewels, if any, serving a mechanical purpose as frictional bearings. Section (c) of Note 4 requires that watch cases shall be marked on the inside or outside of the back cover to show the name of the country of manufacture, and the name of the manufacturer or purchaser. The country of manufacture in these requirements refers to where the movements, and cases, are manufactured rather than where the watch was made. Since the watch case has no markings on either the inside or the outside of the clear plastic back, it is not legally marked with respect to U.S. Note 4 (c)(i) and 4 (c)(ii) in Chapter 91. Although the markings on the movement can be seen through the back of the clear case, the requirement to mark the case with country of manufacture, and the name of the manufacturer or purchaser is not eliminated. Since these requirements are Congressionally enacted, the Customs Service has no authority for granting exceptions to the special marking requirements for watches. (See HQ 726711, October 22, 1984). Moreover, the markings on the movement refer only to the movement and will not convey information regarding the country of manufacture of the case and the name of the manufacturer or purchaser of the case. Otherwise, the watch appears to legally marked. HOLDING: Because the watch case is not marked, it is not legally marked in accordance U.S. Note 4 (c)(i) and 4 (c)(ii) in Chapter 91. The watch case must be marked on the inside or the outside of the back of the watch case to indicate the name of the country of manufacture, and the name of the manufacturer or purchaser. This marking must be done by one of the methods indicated in the U.S. Note, and a gummed label is unacceptable. Sincerely, John Durant, Director Commercial Rulings Division cc: Assistant Area Director New York Seaport Attn: NIS Division