Country of origin marking requirements for folk jewelry items such as necklaces and earrings that incorporate little Russian matrioshka dolls; babushkins; stringing of necklaces; beads; substantial transformation; 19 CFR 134.1

HQ 73482 April 5, 1993 MAR-2-05 CO:R:C:V 734829 RSD CATEGORY: MARKING Mr. Paul F. Scotchmer, President Russian Treasures P.O. Box 8998 Asheville, North Carolina 28814 RE: Country of origin marking requirements for folk jewelry items such as necklaces and earrings that incorporate little Russian matrioshka dolls; babushkins; stringing of necklaces; beads; substantial transformation; 19 CFR 134.1 Dear Mr. Scotchmer: This is in response to your letter dated September 22, 1992, concerning the country of origin marking requirements for folk jewelry consisting of earrings and necklaces which incorporate matrioshka dolls made in Russia. You have also submitted a page from your catalogue which displays the type of folk jewelry which your company intends to sell. FACTS: Russian Treasures intends to import pieces of folk jewelry such as earrings and necklaces from Russia. The defining feature of this jewelry is a little wooden doll, which is modeled after the matrioshka, or nesting doll. These little dolls are known as "babushkins". They are carved out of wood and are hand painted by the same artists who produce the matrioshka dolls. According to the pictures on the page of the catalogue, in addition to the babushkins, the necklaces can consist of beads, a chain, or a string. As pictured, some of the necklaces contain only one babushkin doll, but other style necklaces contain several babushkins. Some of the "findings" used in making the jewelry, such as beads, are imported into Russia from the United States and several other countries. All the jewelry is assembled in Russia and then is sent to the United States for wholesale distribution. All merchandise, whether sold to specialty shops or department stores, will be displayed and packaged precisely as it arrives from Russia. You propose to supply the necklaces and pendants with hang tags saying "Product of Russia". For the earrings, you will have the same thing printed on the earring cards. In addition, other information about the products will likely be printed on the hang tag and earring cards. ISSUE: Can the folk jewelry imported from Russia be marked with a hang tag or earring card indicating that it is product of Russia? 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 134.1(b), Customs Regulations (19 CFR 134.1(b)), 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 the marking laws and regulations. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character, or use differing from that of the constituent article will be considered substantially transformed. The issue that must be resolved is whether the pieces of folk jewelry are products of Russia. In the case of the earrings, the product basically consists of the babushkin doll and a hook. The babushkins, which are made in Russia, are the most important feature of the earrings which give them their basic character. The other components are minor and lose their separate identity when they are joined with the Russian babushkins. Therefore, the earrings are products of Russia. Marking the country of origin on the earring cards would be an acceptable method marking the earrings. The necklaces and pendants are slightly more complex than the earrings because they contain other items besides the babushkin dolls such as beads, string, and chain which may come from several countries. We note, however, that the babushkin dolls are still highly significant components which are a distinguishing feature of the finished necklaces. The babushkin doll is clearly the most intricate of the components on the finished necklace. It is takes great skill for the artists to make the babushkin dolls by carving the wood and hand painting each one. Although the assembly of the necklace may not be very complex, we find that the combination of the stringing of the beads on to the necklaces in Russia with the addition of the Russian made babushkin dolls makes the country of origin of the final article Russia. Therefore, the necklaces must be marked to indicate that they products of Russia. Marking each necklace by attaching a hang tag is an acceptable method of marking the country of origin, provided that, the tags are affixed in a conspicuous place and so securely, that unless deliberately removed, they will remain on the article until it reaches the ultimate purchaser. See HQ 734481 (August 19, 1992). We note that there is one item pictured on the page from your catalogue, the pendant with the gold chain and babushkin doll, item number 501, which we cannot rule upon because we do not have enough information. If the chain is made out of real gold and it is not made in Russia, a separate marking indicating the country of origin of the chain probably would be required.  HOLDING: The finished earrings and necklaces must be marked to indicate that they are products of Russia. Sincerely, John Durant, Director Commercial Rulings Division