THE COUNTRY OF ORIGIN MARKING OF WATCHES

N064864 July 9, 2009 MAR-2 OT:RR:NC:4:414 CATEGORY: MARKING Mr. Chris Colvile Michael Hill 7 Smallwood Place, Murarrie, QLD 4172 GPO Box 2922, Brisbane, QLD 4001 Australia RE: THE COUNTRY OF ORIGIN MARKING OF WATCHES Dear Mr. Colvile: This is in response to your letter dated June 3, 2009, requesting a ruling on country of origin marking and the special marking requirements for wrist watches. Marked samples of five watches were submitted with your letter; the samples are being retained by this office. The samples are Model # A-NZ, Model # B-9099, Model # C-9128, Model # E-9192 and Model # D-9191. Additionally, you furnished a sample of cardboard packaging provided with the product after retail sale. You state that Michael Hill does not import or display their watches at the point of sale in retail packaging. Michael Hill offers generic packaging when a watch is sold to the customer. Accordingly, you did not request a ruling on the marking of the cardboard packaging. Model # A-NZ is a men’s analog wrist watch with a round dial and a square watch case. The case is made of stainless steel and the watch has a rubber watch band. The battery-operated quartz movement has thirteen jewels. Model # A-NZ’s watch case and watch band are made in China. The quartz movement is made in Switzerland. The watch case, the movement and the watch band are assembled into a complete watch in China. Model # B-9099 is a men’s analog wrist watch with a round watch case. The case is made of stainless steel and the watch has a leather watch band. The battery-operated quartz movement has no jewels. Model # B-9099’s watch case and watch band are made in China. The quartz movement is made in Japan. The watch case, the movement and the watch band are assembled into a complete watch in China. Model # C-9128 is a women’s analog wrist watch with a round watch case. The case is made of stainless steel and the watch has a stainless steel watch band. The battery-operated quartz movement has one jewel. Model # C-9128’s watch case and watch band are made in China. The quartz movement is assembled in Thailand of Swiss parts. The watch case, the movement and the watch band are assembled into a complete watch in China. Model # E-9192 is a women’s analog wrist watch with a rectangular watch case. The case is made of stainless steel and watch band is made of stainless steel. The battery-operated quartz movement has no jewels. Model # E-9192’s watch case and watch band are made in China. The quartz movement is made in Japan. The watch case, the movement and the watch band are assembled into a complete watch in China. Model #D-9191 is a men’s opto-electronic wrist watch with a square watch case. The case is made of stainless steel and the watch band is made of rubber. The watch is battery operated and contains a liquid crystal display. Model # D-9191’s watch case and watch band are made in China. The opto-electronic movement is made in China. The watch case, the movement and the watch band are assembled into a complete watch in China. The marking statute, Section 304, 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 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. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. The country of origin of a watch is the country of manufacture of the watch movement. The addition of the hands, dial, case, or watch band add definition to the time piece but do not change the character or use of the watch movement. In order to satisfy the requirements of 19 U.S.C 1304, a watch must be legibly marked with the name of the country of manufacture of the watch movement in a conspicuous place. As a general rule, Section 304, Tariff Act of 1930, marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin for metal articles be die-sunk, molded in or etched. See 19 CFR 134.41. However, for Section 304 marking, the Customs Service normally permits any reasonable method of marking that will remain on the article during handling until it reaches the ultimate purchaser. This includes the use of paper stickers or pressure sensitive labels and string tags. If paper stickers or pressure sensitive labels are used, section 134.44, Customs Regulations (19 CFR 134.44), provides that they must be so securely affixed in a conspicuous place that, unless deliberately removed, they will remain on the article while it is in storage or on display and until it is delivered to the ultimate purchaser. A conspicuous location includes marking the watch on the face of the dial or on the outside surface of the back cover of the watch case. Regarding the marking of watch bands, Customs determined in Headquarter’s Ruling Letter 560471 dated January 5, 1997, that watch straps and bands assembled to a watch in the same country where the movement is assembled are substantially transformed and become a product of that country. In that situation, assuming that the country of origin marking of the watch is conspicuous, legible and permanent, the band is not required to be separately marked. We note that you propose marking the watch band even when the watch band is assembled to the watch in the same country as the watch is made, as is the case with Model # D-9191. 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 also 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 (HTSUS) (19 USC 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, stamping (including by means of indelible ink), or mold-marking (either indented or raised), as specified in the provisions of this note. This marking is mandatory. Customs has no authority for granting exceptions to the special marking requirements for watches. However, movements with opto-electronic displays only and cases designed for use therewith, whether entered as separate articles or as components of assembled watches, are excepted from the marking requirements of Additional U.S. Note 4 of Chapter 91, Harmonized Tariff Schedule of the United States (HTSUS). Section (a) of Additional U.S. Note 4 of Chapter 91 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 Additional U.S. Note 4 of Chapter 91 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. The special marking must be accomplished by one of the methods specified in the Additional U.S. Note 4 of Chapter 91, and using stickers is not an acceptable alternative. You propose marking Model # A-NZ with the words “Swiss Movement” in a permanent manner on the lower portion of the watch dial, and with the words “Swiss Movement” engraved on the outside of the case back, to meet the requirements of Part 134, Customs Regulation (19 CFR Part 134). You also propose marking the watch band with a paper tag referred to as a swing tag with the words “Made in China” printed on one side of the tag. The tag also has a bar code and an eight-digit number printed on the same side of the tag. The other side of the tag has a short description of the watch and the price of the watch in various currencies. To meet the requirements of Additional U.S. Note 4 of Chapter 91 of the Harmonized Tariff Schedule (HTSUS), you propose engraving the words “Swiss”, “Rhonda”, and “13 Thirteen Jewels” on the movement bridge, and engraving the words “Made in China” on the inside back of the watch case. The outside back of the case has the name “Michael Hill” permanently worked into the case back. You propose marking Model # B-9099 with the words “Japan Quartz Movement” engraved on the outside of the case back, to meet the requirements of Part 134, Customs Regulations (19 CFR Part 134). You also propose marking the watch band with a paper swing tag with the words “Made in China” printed on one side of the tag. The tag has a bar code and an eight digit number printed on the same side of the tag. The other side of the tag has a short description of the watch and the price of the watch in various currencies. To meet the requirements of Additional U.S. Note 4 of Chapter 91 of the Harmonized Tariff Schedule (HTSUS), you propose engraving the words “Japan”, “Miyota Co.”, and “No jewels” on the movement bridge, and engraving the words “Made in China” on the inside back of the watch case. The outside back of the case has the name “Michael Hill” permanently worked into the case back. You propose marking Model # C-9128 with the words “Movement Thailand” which is printed onto a self-adhesive sticker. The sticker label is on the outside of the case back. You also propose marking the watch band with a paper swing tag with the words “Made in China” printed on one side of the tag. A bar code and an eight digit number are printed on the same side of the tag. The other side of the tag has a brief description of the watch and the price of the watch in various currencies. To meet the requirement of Additional U.S. Note 4 of Chapter 91 of the Harmonized Tariff Schedule (HTSUS), you propose engraving the words “Thailand” “Swiss Parts”, “Rhonda”, and “1 One Jewel” on the movement bridge, and stamping in ink the words “Made in China” on the inside back of the watch case. The outside back of the case has the name “Michael Hill” permanently worked into the case back. You propose marking Model # E-9192 with the word “Movement Japan” which is printed onto a self-adhesive sticker. The sticker label is on the outside of the case back. You also propose marking the watch band with a paper swing tag with the words “Made in China” printed on one side of the tag. A bar code and an eight digit number are printed on the same side of the tag. The other side of the tag has a brief description of the watch and the price of the watch in various currencies. To meet the requirements of Additional U.S. Note 4 of Chapter 91 of the Harmonized Tariff Schedule of the United States (HTSUS), you propose engraving the words “Japan”, “Miyota Co.”, and “No Jewels” on the movement bridge, and engraving the words “Made in China” on the inside of the watch case back. The outside of the back of the case has the words “Michael Hill” permanently worked into the case back. You propose marking Model # D-9191 with the words “Made in China” printed on a self-adhesive label. The sticker label is on the outside of the case back. You also propose marking the watch band with a paper swing tag with the words “Made in China” printed on one side of the tag. A bar code and eight digit number are printed on the same side of the tag. The other side of the tag has a brief description of the watch and the price of the watch in various currencies. There are no requirements under Additional U.S. Note 4 of Chapter 91 of the Harmonized Tariff Schedule of the United States (HTSUS) because this watch has an opto-electronic display; watches with opto-electronic displays are excepted from the special marking requirements. The proposed marking of the five samples of Michael Hill watches, as described in this letter, is considered to be conspicuous, legible and permanent in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and meets the requirements of the special marking requirements of Additional U.S. Note 4 of Chapter 91, Harmonized Tariff Schedule of the United States (HTSUS). However, with regard to the marking of the watchbands, the marking on the paper swing tag on the watch bands should state “Band (or Bracelet, or Strap) Made in China” to avoid any confusion on the part of the ultimate consignee about the country of origin of the watch. This ruling is being issued under provision of Part 177 of the Customs Regulations (19 CFR Part 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Barbara Kiefer at (646) 733-3019. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division