[Federal Register Volume 60, Number 66 (Thursday, April 6, 1995)]
[Notices]
[Pages 17607-17609]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8454]
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DEPARTMENT OF THE TREASURY
[T.D. 95-25]
Country of Origin Marking of Products From the West Bank and Gaza
AGENCY: U.S. Customs Service, Department of Treasury.
ACTION: Notice of Policy.
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SUMMARY: This document notifies the public that, for country of origin
marking purposes, goods which are produced in the West Bank and Gaza
Strip shall be properly marked as ``West Bank,'' ``Gaza'' or ``Gaza
Strip'' and shall not contain the words ``Israel,'' ``Made in Israel,''
``Occupied Territories-Israel,'' or words of similar meaning.
EFFECTIVE DATE: For those persons whose ruling is revoked, the position
set forth in this document is effective for merchandise entered or
withdrawn from warehouse for consumption on or after June 19, 1995; for
all other persons, this document is effective on April 6, 1995.
FOR FURTHER INFORMATION CONTACT: Wende Schuster, Special Classification
and Marking Branch (202) 482-6980.
SUPPLEMENTARY INFORMATION:
Background
Section 304 of the 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. Failure to mark an article in accordance with
the requirements of 19 U.S.C. 1304 shall result in the levy of a duty
of ten percent ad valorem. Part 134, Customs Regulations (19 CFR Part
134), implements the country of origin marking requirements and
exceptions of 19 U.S.C. 1304.
Past Policy
In the past, Customs has taken the position that in order for the
country of origin marking of a good which is produced in the West Bank
or Gaza Strip to be considered acceptable, it must be marked with the
words ``Israel,'' ``Product of Israel,'' or ``Israeli-Occupied West
Bank (or Gaza),'' or words of similar meaning. In all such instances,
Customs required that the word ``Israel'' must appear in the marking
designation. For instance, in HRL 718329 dated December 21, 1981,
Customs held that it is acceptable to mark goods which were produced on
the West Bank of the Jordan River with the phrase ``Israeli-Occupied
West Bank,'' ``Made in Israel,'' or ``Israel'' and to indicate such
marking designation on the Certificate of Origin Form A for purposes of
the Generalized System of Preferences (GSP). In another case concerning
goods produced on the West Bank of the Jordan River (HRL 718125 dated
November 12, 1981), Customs held that these goods must be marked with
the designators ``Israeli-Occupied West Bank'', ``Made in Israel'', or
``Israel'' for purposes of indicating the country of origin of the
merchandise pursuant to 19 U.S.C. 1304. In addition, in HRL 730094
dated January 30, 1987, Customs held that the proper country of origin
marking designation for soap which is produced in the West Bank is
``Israeli-occupied West Bank'' or simply ``Israel''. Finally, in HRL
734609 dated May 26, 1992, which concerned the [[Page 17608]] proper
country of origin marking of fruits and vegetables imported into the
U.S. from the Gaza Strip, Customs held that the designation ``West
Bank'' is not an acceptable country of origin marking because the
United States does not recognize the West Bank territory as an
independent political entity. Consequently, Customs stated in HRL
734609 that as the Gaza Strip has a similar status as the West Bank,
the country of origin markings, ``Israel-Occupied Gaza,'' ``Made in
Israel,'' or ``Israel'' but not simply the word ``Gaza'' can be used on
goods which are produced in Gaza.
Recognition of West Bank and Gaza Strip
The Department of State has advised that in accordance with the
Israeli-PLO Declaration of Principles on Interim Self-Government
Arrangements (``the DOP''), which was signed in Washington, D.C. on
September 13, 1993, Israel has agreed to transfer certain powers and
responsibilities to the Palestinian Authority. Under this Agreement,
Israel has also consented to make a similar transfer to a superseding,
elected Palestinian Council, as part of interim self-governing
arrangements in the West Bank and Gaza Strip. As part of this
Agreement, the Palestinian Authority has agreed to administer its own
tariff revenue collection and other customs matters. The Palestinian
Authority also acceded to set its own tax policy under the terms of an
implementing agreement which was concluded in Cairo on May 4, 1994. In
view of these recent developments, the U.S. Department of the State has
advised the U.S. Department of the Treasury by letter dated October 24,
1994, that, in their view, the primary purpose of 19 U.S.C. 1304 would
be best served if goods which are produced in the West Bank and Gaza
Strip are permitted to be marked ``West Bank'' or ``Gaza Strip.'' The
Department of State believes that labeling goods as coming from the
``West Bank'' or ``Gaza'' will provide American purchasers with
important information indicating their origin, which is the primary
purpose of 19 U.S.C. 1304.
Reliance Upon Advice From State Department
Customs has previously relied upon advice received from the U.S.
Department of State in making determinations regarding the ``country of
origin'' of a good for marking purposes. In T.D. 49743 dated November
10, 1938, the question was whether products imported from German-
occupied territories were regarded as products of Germany for the
purposes of the marking provisions of the Tariff Act of 1930, and for
determining applicable rates of duty. Based upon instructions given by
the U.S. Department of State, Customs held that as a result of a change
in jurisdiction from Czechoslovak to German in the Sudeten areas which
were under German occupation, products which were manufactured in those
areas and were exported on or after the date of German occupation were
considered products of Germany for purposes of country of origin
marking.
In United States v. Friedlaender & Co., Inc., C.C.P.A. (February
26, 1940), the issue involved the proper country of origin marking of
imported merchandise which was wholly manufactured in Czechoslovakia,
except at the time the goods were exported, the territory in which the
goods were manufactured was under German occupation. Customs held that
marking the goods as products of Czechoslovakia was not acceptable,
based upon instructions set forth in T.D. 49743. The court agreed with
Customs and held that as the goods were exported at a time when that
part of Czechoslovakia in which the goods were manufactured was under
German occupation, the marking ``Czechoslovakia'' was not in compliance
with the requirements of the marking statute, and the goods should be
marked to indicate ``Germany'' as the country of origin. However, in a
later Treasury Decision (T.D. 51360 dated November 30, 1945), the
position taken by Customs in T.D. 49743 was rescinded. In T.D. 51360,
Customs stated that the U.S. Department of State advised that the
boundaries of Czechoslovakia had been reestablished as they existed
prior to the date of the occupation by Germany, and that the United
States recognized Czechoslovakia as an independent state. Based upon
this information, Customs reversed the position taken in T.D. 49743,
and concluded that articles which were manufactured or produced in
Czechoslovakia after May 8, 1945, should be regarded as products of
Czechoslovakia for purposes of the marking provisions of the Tariff Act
of 1930.
Accordingly, consistent with prior Customs decisions, Customs is
relying upon advice from the Department of State for purposes of
defining the term ``Country'' within the meaning of section 134.1(a),
Customs Regulations (19 CFR 134.1(a)).
Revocation of Prior Rulings
On November 23, 1994, Customs issued telex 6327071, which stated
that Customs was proposing to change its position regarding the country
of origin marking requirements for goods made in the West Bank and Gaza
Strip. In the telex, Customs stated that effective immediately
merchandise which is produced in the West Bank or Gaza Strip may be
properly marked with the words ``West Bank,'' ``Gaza,'' or ``Gaza
Strip,'' without the words ``Israel,'' ``Product of Israel,'' or
``Israeli-Occupied West Bank,'' or words of similar meaning, also
appearing in the marking designation. The telex further stated that
Customs would publish a notice in the Customs Bulletin requesting
public comment on the modification or revocation of prior rulings
concerning this matter. However, it was further noted in the telex that
until such modification or revocation is effected, the prior rulings
concerning the proper marking of goods made in the West Bank or Gaza
Strip would remain valid and goods may continue to be marked in
accordance with them.
On February 8, 1995, Customs published a notice in the Customs
Bulletin (Volume 29, Number 6), proposing to revoke Headquarters Ruling
Letters (HRLs) 718329, 718125, 730094, and 734609, to reflect the
position that goods which are produced in the West Bank or Gaza Strip
shall be regarded as a product of the West Bank or Gaza Strip in
accordance with the requirements of 19 U.S.C. 1304 and 19 CFR Part 134,
and shall be marked as ``West Bank,'' ``Gaza'' or ``Gaza Strip,'' and
shall not contain the words ``Israel,'' ``Made in Israel,'' ``Occupied
Territories-Israel,'' or words of similar meaning.
Two comments received in response to the February 8, 1995, Customs
Bulletin notice both of which were favorable to the Customs proposal.
One commenter, however, suggested that Customs expand the proposed
position by allowing goods which are produced in the West Bank or Gaza
Strip to be marked as ``West Bank,'' ``Gaza,'' ``Palestine,'' ``West
Bank, Palestine,'' or ``Gaza, Palestine.'' The U.S. Department of State
has not identified the area within the West Bank or Gaza Strip as one
that should be recognized as ``Palestine.'' Therefore, articles which
are produced in the West Bank or Gaza Strip may not be marked as
products of ``Palestine.''
New Position
This document notifies the public that unless excepted from
marking, goods [[Page 17609]] which are produced in the territorial
areas known as the West Bank or Gaza Strip shall be marked as ``West
Bank,'' ``Gaza,'' or ``Gaza Strip'' in accordance with the requirements
of 19 U.S.C. 1304 and 19 CFR Part 134, and shall not contain the words
``Israel,'' ``Made in Israel,'' ``Occupied Territories-Israel,'' or
words of similar meaning. This document also revokes prior ruling
letters (HRL's 718329, 718125, 730094, and 734609) regarding the
country of origin marking requirements for goods which are produced in
the West Bank and Gaza Strip. For those persons whose ruling is
revoked, the position stated in this document is effective for
merchandise which is entered or withdrawn from warehouse for
consumption on or after 60 days from the date this document is
published in the Customs Bulletin; for all other persons, this document
is effective on the date of publication in the Federal Register.
Dated: April 3, 1995.
Stuart P. Seidel,
Assistant Commissioner, Office of Regulations and Rulings.
[FR Doc. 95-8454 Filed 4-5-95; 8:45 am]
BILLING CODE 4820-02-P