THE COUNTRY OF ORIGIN MARKING OF WATCHES

N285523 May 16, 2017 MAR-2 OT:RR:NC:N1:113 CATEGORY: MARKING Ms. Gail T. Cumins Sharretts, Paley, Carter & Blauvelt, P.C. 75 Broad Street New York, NY 10004 RE: THE COUNTRY OF ORIGIN MARKING OF WATCHES Dear Ms. Cumins: This is in response to your letter dated April 19. 2017, on behalf of Timex Group USA, Inc., requesting a ruling on the country of origin marking for watches. A marked sample was not submitted with your letter for review. In your letter, you indicated that the products are watches that Timex Group USA, Inc. will import for shipment to final customers in the United States and Canada. You stated that “To produce the watches, precision watch movement components will be sourced in France and shipped to the Philippines. There they will be assembled into complete watch movements, which, in turn, will be further assembled with other components into finished watches. The watch straps, cases, dials, hands, and batteries may be sourced from different countries...but all the components of the watch movements will be manufactured in France.” 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 adds definition to the time piece -but does not change the character or use of the watch or clock 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. 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 or clock movement, or watch or clock 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. 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, 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 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 Chapter 91, Additional U.S. Note 4, and using stickers is not an acceptable alternative. Timex Group proposed to mark the watches “French Precision Parts/Philippine Assembly”. This marking would be placed on the watches themselves as well as on their retail packaging. You indicated that as a long time importer and manufacturer of watches, Timex Group is well aware of the special marking requirements for watches set forth in Additional U.S. Note 4, Chapter 91, HTSUS. This ruling request solely involves the country of origin marking requirements in 19 U.S.C. 1304. The proposed marking for the watches, as described above, is unacceptable for country of origin marking purposes under 19 U.S.C. 1304. Under long standing Customs practice, the country of origin of a watch is the country of manufacture of the watch movement.  CBP has consistently held that “assembled in” is unacceptable for marking purposes because it does not indicate the country of origin of the watch and could mislead the ultimate purchaser regarding the country of origin. We note that in HQ 734758 dated March 1, 1993, Customs determined that for a watch with a movement made in China with Swiss parts, the marking “Swiss parts assembled in China” was unacceptable because it did not indicate the country of origin and may mislead the ultimate purchaser into thinking the watch was made in Switzerland.  In the ruling request under consideration, the country of origin of the watches is the Philippines which is where the watch movement is assembled.  Marking the watch “French Precision Parts/Philippine Assembly” is unacceptable because it does not indicate the country of origin and may mislead the ultimate purchaser into thinking the watch was made in France. However, 19 U.S.C. 1304 does not prohibit additional information, such as the name of the country where certain parts are made, from being included on the article, provided that the article is properly marked with its country of origin and the information is not false or misleading.  Therefore, in this case it would be acceptable if the country of origin marking included the phrase “French Precision Parts/Made in the Philippines” or “French Precision Parts/Movement Philippines” or similar words to properly indicate country of origin.  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 Ann Taub at ann.taub@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division