[Federal Register Volume 59, Number 45 (Tuesday, March 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5262]


[[Page Unknown]]

[Federal Register: March 8, 1994]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 175

 

Receipt of Domestic Interested Party Petition Concerning Country 
of Origin Marking for Cast Iron Soil Pipe

AGENCY: U.S. Customs Service, Department of the Treasury.

ACTION: Notice of receipt of domestic interested party petition; 
solicitation of comments.

-----------------------------------------------------------------------

SUMMARY: Customs has received a petition filed on behalf of domestic 
interested parties concerning the country of origin marking 
requirements for cast iron soil pipes used primarily to convey waste 
water. Currently, Customs has permitted the importation of such pipes 
if they are marked to indicate their country of origin by cast-in-mold 
letters on the lips or edges or hubs of the pipes. The petition 
requests that Customs adopt a new rule under which the marking of all 
cast iron soil pipes would have to appear on the barrel of the pipe by 
paint stenciling in order to be considered conspicuous and legible and 
in compliance with the special marking requirements for pipes and tubes 
set forth at 19 U.S.C. 1304(c). Public comment is solicited regarding 
the application of these marking requirements to imported cast iron 
soil pipe.

DATES: Comments must be received on or before 60 days from the date of 
publication in the Federal Register.

ADDRESSES: Comments (preferably in triplicate) may be submitted to the 
U.S. Customs Service, Regulations Branch, Office of Regulations and 
Rulings, 1301 Constitution Avenue, NW., (Franklin Court), Washington, 
DC. 20229. Comments may be viewed at the Office of Regulations and 
Rulings, Franklin Court, 1099 14th Street, NW., suite 4000, Washington, 
DC.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Dinerstein, Value and 
Marking Branch, Office of Regulations and Rulings, U.S. Customs Service 
(202) 482-7010.

SUPPLEMENTARY INFORMATION:

Background

    Pursuant to section 516, Tariff Act of 1930, as amended (19 U.S.C. 
1516), and part 175, Customs Regulations (19 CFR part 175), a domestic 
interested party may challenge certain decisions made by Customs 
regarding imported merchandise which is claimed to be similar to the 
class or kind of merchandise manufactured, produced, or wholesaled by 
the domestic interested party. This document provides notice that 
domestic interested parties are challenging a marking decision made by 
Customs.
    The petitioners are The American Brass & Iron Foundry and Charlotte 
Pipe and Foundry Company. Both of these entities are domestic 
interested parties within the meaning of section 516(a)(2), Tariff Act 
of 1930, as amended (19 U.S.C. 1516(a)(2)).
    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, indelibly, 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. Congressional intent in enacting 19 U.S.C. 1304 was that the 
ultimate purchaser should be able to know by an inspection of the 
marking on the imported goods the country of which the goods is the 
product.
    Section 207 of the Trade and Tariff Act of 1984, (Pub. L. 98-573), 
amended 19 U.S.C. 1304 to require, without exception, that all pipe, 
tube, and pipe fittings of iron or steel be marked to indicate the 
proper country of origin by means of die stamping, cast-in-mold 
lettering, etching or engraving. 19 U.S.C. 1304(c). In 1986, Congress 
enacted Public Law 99-514 which amended 19 U.S.C. 1304(c) to authorize 
alternative methods of marking if, because of the nature of an article, 
it is technically or commercially infeasible to mark by one of the four 
prescribed methods. The amendment, codified at 19 U.S.C. 1304(c)(2), 
provides that in such case, ``the article may be marked by an equally 
permanent method of marking such as paint stenciling or in the case of 
small diameter pipe, tube, and fittings, by tagging the containers or 
bundles.''
    The petitioners contend that in order for the marking of the 
imported pipes to be considered conspicuous and legible and be in 
accordance with 19 U.S.C. 1304(c), they must be marked on their barrels 
by paint stenciling. Customs presently has no requirement for cast iron 
soil pipe to be marked in any particular location or that any method 
other than those specified in 19 U.S.C. 1304(c) be used to mark the 
pipe. Customs has allowed cast iron pipe to be marked on its side or 
lip with cast-in-mold letters. Counsel for the petitioners maintains 
that such marking is not conspicuous or legible and therefore is not in 
compliance with the requirements of the 19 U.S.C. 1304. It is alleged 
that the ultimate purchasers of the soil pipe, general contractors or 
plumbing subcontractors, are usually unable to determine the country of 
origin of the pipe because the marking is not conspicuous or legible. 
Petitioners have furnished several letters and statements from plumbing 
contractors attesting that it is important for them to know the country 
of origin of the soil pipe they install, but often they are unable to 
tell its country of origin.
    Counsel for the petitioners contends that it is not technically and 
commercially feasible to conspicuously and legibly mark cast iron soil 
pipes by any of the four methods mentioned in 19 U.S.C. 1304(c)(1). 
Accordingly, petitioners argue that Customs should apply 19 U.S.C. 
1304(c)(2) and require that cast iron soil pipes be marked by paint 
stenciling.
    Previously, the petitioners requested a ruling on whether a sample 
soil pipe was legally marked. The marking was on the side or lip or hub 
of the pipe in cast-in-mold letters. Customs concluded that the marking 
was sufficiently conspicuous and legible to satisfy the requirements of 
19 U.S.C. 1304 and that marking duties should not be assessed against 
entries of this merchandise. (Headquarters Letter 734818, March 31, 
1993.) Petitioners believe that this determination is incorrect and 
challenge it. They claim that because the country of origin marking is 
at the end of the pipe, it is hard to find and in a location where 
users of the pipes do not expect to find such information. It is 
further represented that it is the American pipe industry's practice to 
put the important information about pipes on their barrels. The 
petitioners also point out that the markings are difficult to read 
because of the small surface area at the end of the pipes, the minimal 
thickness of the raised lettering, lack of color contrast, and because 
often a tar coating covers the lettering. The petition also states that 
the pipes are often stored in large stacks and that the ultimate 
purchaser would have to lift the end of each pipe to examine the 
marking, but this is usually not feasible because the pipes are heavy 
and delivered in large quantities.
    We invite comments from the public as to whether marking on 
imported cast iron soil pipes by cast-in-mold letters on the side of 
pipe is sufficiently conspicuous and legible to satisfy the 
requirements of 19 U.S.C. 1304. We also seek comments as to whether the 
pipes can be conspicuously and legibly marked through one of the four 
methods mentioned in 19 U.S.C. 1304(c)(1), or if paint stenciling on 
the barrel of the pipe must be used to achieve a conspicuous and 
legible marking.

Comments

    Pursuant to Sec. 175.1(a), Customs Regulations (19 CFR 175.21(a)), 
before making a determination on this matter, Customs invites written 
comments from interested parties. The petition of the domestic 
interested party, as well as all comments received in response to this 
notice, will be available for public inspection in accordance with the 
Freedom of Information Act (5 U.S.C. 552), Sec. 1.4, Treasury 
Department Regulations (31 CFR 1.4) and section 103.11(b), Customs 
Regulations (19 CFR 103.11(b)) on regular business days between the 
hours of 9 a.m. and 4 p.m. at Regulations Branch, suite 4000, Franklin 
Court, 1099 14th Street, NW., Washington, DC 20229. Appointments to 
inspect the petition and comments can be made by contacting the 
Regulations Branch at 202-482-6970.

Authority

    This notice is published in accordance with Sec. 175.21(a), Customs 
Regulations (19 CFR 175.21(a)).

Drafting Information

    The principal drafter of this document was Mr. Robert Dinerstein, 
Value and Marking Branch, U.S. Customs Service. Personnel from other 
Customs offices participated in its development.
George J. Weise,
Commissioner of Customs.
    Approved: February 11, 1994
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 94-5262 Filed 3-7-94; 8:45 am]
BILLING CODE 4820-02-P