The tariff classification and country of origin marking of Pace Watches from Japan

N242566 June 27, 2013 CLA-2-90:OT:RR:NC:N4:414 CATEGORY: Classification TARIFF NOS.: 9102.11.45 Mr. Phillip Christiaan Luebke Phildopolis LLC DBA Brilliant Swim PO Box 10941Bozeman, MT 59719-0941 RE: The tariff classification and country of origin marking of Pace Watches from Japan Dear Mr. Luebke: In your letter dated May 30, 2013 you requested a ruling on both the tariff classification and country of origin marking for two Pace Watches. No samples were submitted but detailed descriptions and photographs were provided with your request. The two pace watches are identified by the color of their cases, silver and red, rather than item numbers. Both watches are battery operated quartz analog wrist watches, with no jewels. They feature stainless steel cases and silicone straps. Although they contain three-hand Miyota brand movements, each watch is fitted with only a minute and a second hand, no hour hand. The watch face has the numerals five through sixty (in intervals of five) around the perimeter where watch numerals traditionally appear. The applicable subheading for the Pace Watches will be 9102.11.45, Harmonized Tariff Schedule of the United States (HTSUS), which provides for wrist watches, pocket watches and other watches, including stop watches, other than those of heading 9101: wrist watches, electrically operated, whether or not incorporating a stop watch facility: with mechanical display only: having no jewels or only one jewel in the movement: other: other. The rate of duty will be 40 cents each plus 8.5 percent on the case plus 2.8 percent on the strap, band or bracelet plus 5.3 percent on the battery. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.   Regarding the country of origin marking, you stated in your letter that the watch movement and battery are made in Japan. The case and the wrist strap are made in China. The watches are assembled in China, imported in bulk and transferred to their retail packaging after importation. You indicate the following markings appear on the watch with the red case: Etched on the movement are “Miyota” “Japan” “No Jewels.” Etched on the battery is “Japan.” Printed on the dial is “Japan Mov’t” along with the company logo. Etched on the inside of the watch case back are “China” and your company name. Etched on the outside of the watch case back is "Japan Movement.”  The watch with the silver case is marked as follows: Etched on the movement are “Miyota” “Japan” “No Jewels.” Etched on the battery is “Japan.” Printed on the dial is the company logo. Etched on the outside of the watch case back is "Japan Movement.” 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 or clock is the country of manufacture of the watch or clock movement. The addition of the hands, dial, case, or watchband add definition to the time piece but do not change the character or use of the watch or clock movement which is the essential component of the watch or clock. 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.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 (HTSUS) (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, stamping, 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. Section (a) of Additional U.S. 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 and 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 requires that watch cases shall be marked on the inside or outside of the back 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 and using stickers is not an acceptable alternative.The proposed marking of the watch with the red case meets the marking requirements of Section 304, Tariff Act of 1930 as amended (19 U.S.C. 1304) and Additional U.S. Note 4 of chapter 91, HTSUS. However, the watch with the silver case does not meet the requirements of Section (c) of Additional U.S. Note 4. As noted above, watch cases shall be marked on the inside or outside of the back to show the name of the country of manufacture, and the name of the manufacturer or purchaser. The watch’s case back must be marked with the country of manufacture, in this situation, China, and with your company name as purchaser or with the name of the manufacturer of the case. You specifically inquired as to whether additional markings were required for the watch straps. We note that, although having a movement from Japan, the watch is being assembled in China using a Chinese case and straps of Chinese origin. Therefore, it does not appear that the ultimate purchaser will be misled as to the country of origin of the watch or its parts and no separate marking for the straps is required. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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, Thomas J. Russo Director National Commodity Specialist Division