THE COUNTRY OF ORIGIN MARKING OF PAPER SHOPPING AND MERCHANDISE BAGS

N243816 August 15, 2013 MAR-2 OT:RR:NC:2:234 CATEGORY: MARKING Mr. Ted Downing PCI Imports, LLC 301 Central Avenue, Suite 395 Hilton Head, SC 29926 RE: THE COUNTRY OF ORIGIN MARKING OF PAPER SHOPPING AND MERCHANDISE BAGS Dear Mr. Downing: This is in response to your letter dated July 8, 2013 requesting a ruling on whether two styles of bags must be marked with the country of origin. A marked sample of a Monkee’s shopping bag and an unmarked sample of a Covent Garden Market merchandise bag were submitted with your letter for review. The first sample, Monkee’s bag, is made of a heavy glossy paper. On the front of the shopping bag is the printed word “Monkee’s” and on the back of the bag is the wording “You might need a bigger closet! TM xoxo, Monkee’s ® ”. The bag background is a white and yellow striped pattern on the front and back. The sides of the bag are black background with white dots. The bag has a plastic lamination on all sides. The bag has two handles made of braided polypropylene. A rectangular liner of paperboard reinforces the bottom of the bag. The bag folds flat and, when opened, measures approximately 33 cm (width) x 25 cm (high) x 13 cm (depth). The bottom of the bag is printed with the wording “Made in China”. The second sample, Covent Garden Market bag, is made of brown paper. On the front of the bag there are printed pictures of a tomato, a fish and a sun. The front of bag also contains the wording “Covent Garden Market”, “Since 1845” and “Full of Food-Full of Life”. The bag has two handles made of braided paper. The bag folds flat and, when opened, measures approximately 40 cm (width) x 30 cm (high) x 15 cm (depth). You state in your letter that the Covent Garden Market bag should be exempt from the country of origin marking requirement because these are considered to be non-reusable or disposable. You acknowledge that the Monkee’s shopping bag is subject to marking requirements. You state that your company will import the Covent bags from China in packages of 100 to 500 bags. The bags will be delivered directly to your customers, retail stores, and they will use the bags to package goods at the point of retail sale. 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, Customs Regulations (19 C.F.R. 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. Where the articles imported constitute containers, 19 CFR Part 134 Subpart C is applicable. The country of origin marking requirements applicable to containers imported empty depend, in part, on whether the containers are reusable or disposable in nature. Disposable containers imported by persons or firms who fill them with various products which they sell may be excepted from individual marking pursuant to 19 U.S.C. 1304(a)(3)(D). However, this exception is not applicable if the imported containers are reusable. Thus, the shopping bags and merchandise bags may be excepted from individual marking only if they are disposable containers, of the type ordinarily discarded after the contents have been consumed. Under 134.23, containers are considered reusable if they are either designed for or capable of reuse after the contents have been consumed, or impart the essential character to the whole importation. Such containers, whether imported full or empty, must be individually marked to indicate the country of their own origin with a marking such as, "Container Made in (name of country)." In order to determine whether the bags are excepted from country of origin marking requirements, it is first necessary to establish whether the bags are disposable or reusable containers as well as to ascertain the identity of the ultimate purchaser of the bags within the meaning of 19 U.S.C.1304. It has been the position of Customs that imported shopping bags, given by retail stores to their customers with the purchase of items, are subject to the country of origin marking requirements of 19 U.S.C. 1304. The ultimate purchaser of the shopping bags is not the retail store, but the customer who is the last to receive the bag in the form in which it is imported. The Monkee’s sample submitted with your request is of a construction that is durable and suitable for repetitive use, with a use and identity separate from their contents. Accordingly, the marking provisions of 134.23(a) are applicable and the shopping bags must be individually marked with their own country of origin. An alternative appropriate marking for the bags, so as not to mislead the purchaser about the origin of the contents, would be "Bag made in (name of country)." The Covent Garden Market bags, in contrast to the Monkee’s bags, are more flimsily constructed and are not suitable for repetitive use. The retail establishments are considered the ultimate purchasers of the merchandise bags. The marking requirements for the Covent Garden Market merchandise bags may be met by marking the outermost containers in which the bags are imported, provided that the port director at the port of entry is satisfied that the shipping containers will reach the ultimate purchaser unopened. 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 Albert Gamble at (646) 733-3037. Sincerely, Deborah C. Marinucci Acting Director National Commodity Specialist Division