COUNTRY OF ORIGIN MARKING OF IMPORTED CRYSTAL JEWELRY.

N096370 March 29, 2010 MAR-2 OT:RR:NC:N4:433 CATEGORY: MARKING Margaret R. Polito Neville Peterson LLP Counsellors at Law 17 State Street – 19th Floor New York, NY 10004 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED CRYSTAL JEWELRY. Dear Ms. Polito: This is in response to your letter dated March 2, 2010, on behalf of Baccarat, Inc., requesting a ruling on whether marking the outer sleeve that houses the jewelry box in which the jewelry piece is imported can be marked in lieu of marking the article itself; to clarify there is no country of origin marking on the jewelry box itself. A submitted sample of the sleeve and box without the jewelry piece was received, with the sleeve annotated: Product of Thailand, Crystal from France and Box made in China. At issue is the marking of crystal jewelry. The jewelry is produced in two steps: First, precious metal is heated and alloyed in Thailand. The molten metal is then poured into settings to produce a casting. The casting is sanded, ground, deburred and polished. The crystals are produced by hand in France and then shipped to Thailand to set into the casting. The jewelry is packed in a presentation box and a cardboard sleeve is placed over the presentation box. 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 (or its container) 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. Part 134, U.S. Customs and Border Protection (CBP) Regulations (19 C.F.R. §134) implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304. Section 134.1(b), CBP Regulations (19 C.F.R. §134.1(b)), defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. 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].” For country of origin making purposes, a substantial transformation of an article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the article before the processing. However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred, and an appropriate marking must appear on the imported article so that the consumer can know the country of origin. See, Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). 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(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article 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. In the case before us the ultimate purchaser of the jewelry piece is the consumer who purchases the product at retail. An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs and Border Protection is satisfied that the article will remain in its container (to include box or sleeve) until it reaches the ultimate purchaser and if the ultimate purchaser can tell the country of origin of the jewelry by viewing the container in which it is packaged, the individual jewelry would be excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d). We find that the marking of the sleeve that houses the box in which the jewelry is imported and sold to the ultimate purchaser in lieu of marking the article itself is an acceptable country of origin marking – provided that the consumer receives the jewelry piece in the box with the housed sleeve indicating country of origin. We concur with you that the casting of the jewelry from alloyed precious metal in Thailand and the setting of the crystals made in France within the piece constitutes a substantial transformation, with country of origin of Thailand – see Headquarters Rulings: HQ 560331 dated December 2, 1997, HQ 555801 dated January 2, 1991, and HQ 556457 dated March 5, 1992. The subject merchandise is not eligible for duty-free treatment under the Generalized System of Preferences (GSP) as the goods will be shipped back to France for quality inspection, then shipped to the United States, not meeting the direct shipment requirement for GSP eligibility. You also ask whether the marking of the box (sleeve) with a label indicating Product of Thailand, Crystal from France and Box made in China, is an acceptable country of origin. The country of origin label appears to be legible, conspicuous and permanent. We find that the proposed label marked Product of Thailand, Crystal from France and Box made in China, all in close proximity and in the same size and color, satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46.  This ruling is being issued under the provisions 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 Neil H. Levy at (646) 733-3036. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division