Country of origin marking for a folding case with a watch movement; special marking requirement for clocks; Chapter 91 Additional U.S. Note 4, HTSUS; watch case

HQ W562252 January 2, 2002 MAR 2-05 RR:CR:SM W562252 MLR CATEGORY: Classification/Marking Ms. Shelia Andrews Dillard’s Inc. 1600 Cantrell Little Rock, Arkansas 72201 RE: Country of origin marking for a folding case with a watch movement; special marking requirement for clocks; Chapter 91 Additional U.S. Note 4, HTSUS; watch case Dear Ms. Andrews: This is in response to your letter dated September 28, 2001, regarding the country of origin marking requirements and classification of a hinged folding case containing a watch movement. A prototype was submitted with your request. FACTS: The article in question is a 2 1/4” x 2 1/2“ (when closed) hinged folding silverplated zinc alloy case containing an analog battery operated clock with a quartz watch movement (7 mm thick x 37 mm diameter) on one side and a photograph frame on the other side with the battery included. [The sample clock submitted is missing the internal working watch movement.] The outer front and back sides of the case consist of ribbed metal with a small smooth plate area on the front which may be engraved. The movement is stated to be made in Japan and the case in China. You propose to mark the article on the bottom edge of the case side containing the clock rather than on the back of the case side containing the clock because the ribbed metal outer surface of the case renders it incapable of being marked in that area. The sample is die-sunk “MVT Japan, Case China” on the bottom edge. After removal of the clock from the case, the “Japan” marking is visible on the back of the clock plate. At the time of importation and sale, the article will be packaged in a photo box that is marked with the country of origin of the article. The photo box will be wrapped in gift paper and the gift paper will also be marked with the country of origin of the article. Over the wrapped gift paper will be a removable photo sleeve that also will be marked with the country of origin of the article. ISSUE: What are the country of origin marking requirements of the sample article? LAW AND ANALYSIS: Section 304 of the 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 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. It has been the position of the U.S. Customs Service for many years that the country of origin of a watch or clock is the country of manufacture of the watch or clock movement. Accordingly, in order to satisfy the requirements of 19 U.S.C 1304, the clock must be marked with the name of the country of manufacture of the clock movement. The country of origin marking must also be legible and in a conspicuous place. Section 134.43(b), Customs Regulations (19 CFR 134.43(b)), in conjunction with 19 CFR 11.9, provides that clocks must be marked in accordance with 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 clock movement or case provided for in the chapter, 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, or stamping or mold-marking (either indented or raised), as specified in the provisions of the note. This marking is mandatory. Section (a) of 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 (d) of Note 4 requires that clock cases provided for in Chapter 91, HTSUS, shall be marked on the most visible part of the outside of the back to show the name of the country of manufacture. The country of manufacture for purposes of Note (a) and (d) refers to where the movement and cases were manufactured, respectively. In this case, the outside back of the watch movement is marked by die sinking with the name of the country of manufacture (Japan). However, we are unable to determine whether the marking requirements of Additional U.S. Note 4(a) are satisfied (namely whether the watch movement is 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), as the internal working movement was not included in the sample prototype. The next issue to be addressed is whether the silverplated zinc alloy hinged case/frame constitutes a clock case provided for in Chapter 91, HTSUS, such that the special marking requirements apply. It is our opinion that the case/frame is properly classified under subheading 9103.10.40 which provides for [c]locks with watch movements, excluding clocks of heading 9104: [e]lectrically operated: [o]ther: [h]aving no jewels or only one jewel in the movement. Because the case/frame is provided for in Chapter 91, HTSUS, the special marking requirements of Additional U.S. Note 4, Chapter 91, HTSUS, apply. Therefore, the marking of the country of manufacture of the case/frame on the bottom edge of the article is not acceptable because U.S. Note 4(d) is a statutory requirement from which Customs has no authority to deviate, and provides that the marking shall be on the most visible part of the outside of the back to show the name of the country of manufacture. We note that when the case/frame is closed, the back of the case is actually the back side which contains the frame. We note that the edge of the back is smooth and would allow a die-sunk marking of the name of the country of manufacture “China.” Both the movement (pursuant to heading 9103, HTSUS) and the battery (pursuant to Additional U.S. Note 3) are also classified in subheading 9103.10.40, HTSUS. HOLDING: Based on the information and sample presented, the watch movement, case, and battery are classified under subheading 9103.10.40, HTSUS. We are unable to determine whether the marking requirements of U.S. Note 4(a), Chapter 91, HTSUS, are satisfied, as the sample only shows the name of the country of manufacture on the outside back of the watch movement. The marking on the bottom of the case will not satisfy the special marking requirements of Additional U.S. Note 4(d), Chapter 91, HTSUS. A copy of this ruling should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. Sincerely, John Durant, Director Commercial Rulings Division