[Federal Register Volume 60, Number 132 (Tuesday, July 11, 1995)]
[Notices]
[Pages 35792-35793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16850]



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DEPARTMENT OF THE TREASURY
Customs Service


Receipt of Domestic Interested Party Petition Concerning Country 
of Origin Marking for Safety Glasses

AGENCY: Customs Service, Department of the Treasury.

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

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SUMMARY: Customs has received a petition filed on behalf of domestic 
interested parties concerning the country of origin marking 
requirements for prescription safety glasses. Under current practice, 
imported safety glass frames are excepted from country of origin 
marking requirements if an employer actually purchases the completed 
prescription safety glasses despite the fact that the wearer of the 
safety glasses may have some choice in selecting the frames. Customs 
has ruled that the insertion of the prescription lenses into the frames 
in the United States to make safety glasses substantially transforms 
the frames into a new article of commerce. The petitioners request that 
Customs adopts the position that employer-purchased imported 
prescription safety glass frames that an employee selects be required 
to be marked with their country of origin. Public comment is solicited 
regarding the application of the marking requirements to imported 
prescription safety frames.

DATES: Comments must be received on or before September 11, 1995.

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, 
D.C. 20229. Comments may be viewed at the Office of Regulations and 
Rulings, Franklin Court, 1099 14th Street NW., Suite 4000, Washington, 
D.C.

FOR FURTHER INFORMATION CONTACT: David Cohen, Special Classification 
and Marking Branch, Office of Regulations and Rulings, U.S. Customs 
Service, (202) 482-6980.

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 Industrial Safety Equipment Association 
(ISEA) and the Optical Industry Association (OIA)--trade associations 
who represent their members who are domestic manufacturers of safety 
glasses. Both entities qualify as domestic interested parties within 
the meaning of 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 shall 
be marked in a conspicuous place with the English name of the country 
of origin. The country of origin marking requirements and exceptions of 
19 U.S.C. 1304 are implemented by part 134, Customs Regulations (19 CFR 
part 134).
    The petitioners contend that imported safety frames should be 
required to be marked with their country of origin notwithstanding a 
limited number of alternatives of frames from which to select. Customs 
present position excepts prescription safety glass frames from country 
of origin marking under the circumstances set forth in Headquarters 
Ruling Letter (HRL) 734258, dated January 7, 1992.
    In HRL 734258, the importer proposed to mark the safety frames by 
affixing a hangtag or an adhesive sticker to the safety frames with the 
name of the country of origin printed thereon. This method of marking 
would inform the optical laboratory of the country of origin of the 
frames. The optical laboratories would remove the hangtag/sticker when 
they installed the prescription safety lenses. While the manufacturer 
of the safety frames produced a variety of frames, the employer of the 
safety glass wearer provided a very limited selection of frames from 
which the employees could select. In limited circumstances, employers 
would set a cap for the amount that they would spend on the safety 
glass frames. The employees could elect to supplement this amount with 
their own funds to acquire a particular style of safety frames. Based 
on these facts, Customs concluded that the optical laboratories that 
insert the safety lenses into the safety frames are the ultimate 
purchasers of the eyeglass frames and that the use of the hangtags or 
stickers to mark the frames which the laboratories remove when the 
lenses are attached is acceptable, provided the marking of the hangtags 
or stickers is conspicuous, legible, and permanent.
    In reaching the conclusion set forth in HRL 734258, Customs relied 
on HRL 729649, dated October 27, 1986, which was a ruling in response 
to a request to reconsider HRL 729451, dated May 27, 1986. In HRL 
729451, Customs determined that the consumer is the ultimate purchaser 
of prescription eyeglass frames rather than the lab that places the 
lenses into the frames. In that ruling, Customs noted:

    [O]nly after the initial decision is made on the frame is it 
sent to the lab for the addition of the particular lens. The 
decision to purchase a particular frame is made separate and apart 
from the processing involved in the addition of the prescription 
lens. In view of these circumstances, we find that the consumer is 
the ultimate purchaser of the frames and is entitled to be informed 
of its country of origin.

    Customs reconsidered HRL 729451 due to the addition of material 
facts that had been omitted from the ruling request upon which HRL 
729451 was based. The omitted fact was that the importer was a 
manufacturer of safety spectacle frames, which unlike ordinary 
prescription spectacle frames, consist of special frames and lenses 
that are manufactured to meet certain safety guidelines. In addition, 
the employee was given a few choices of safety frames, but it was the 
employer who 

[[Page 35793]]
determined the type of safety glasses that were required for its 
employees. The Occupational Safety and Health Act of 1970, and 
regulations promulgated thereunder, required that these employers 
provide safety eyewear for their employees.
    As a result of these additional facts, Customs ruled that the 
purchaser of the safety glasses was not making two purchasing decisions 
(frames and lenses). Rather, Customs concluded that the employer was 
actually purchasing one item (safety glasses). Therefore, Customs 
concluded that the optical laboratory that assembled the frames and 
lenses substantially transformed the frames into a new and different 
article of commerce (safety glasses).
    The instant petition requests that Customs reconsider and reject 
the position stated in HRL 734258, and, essentially, adopt the position 
that prescription safety glasses are no different from prescription 
glasses, provided the employee exercises some degree of choice in 
selecting safety frames. Accordingly, the petitioner seeks to have 
Customs treat an employee's selection of prescription safety spectacle 
frames as a purchasing decision which is separate from the subsequent 
process of inserting the safety prescription lenses into the safety 
frames. Should Customs adopt this position, the safety frames at issue 
in HRL 734258 would be required to be marked with their country of 
origin for the benefit of the ultimate purchaser--the employee who 
receives and uses the safety frames in the workplace.

Comments

    Pursuant to section 175.21(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), section 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 9:00 a.m. and 4:00 p.m. at the Regulations Branch, 
Suite 4000, Franklin Court, 1099 14th Street N.W., Washington, D.C.

Authority

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

Drafting Information

    The principal drafter of this document was David Cohen, Special 
Classification and Marking Branch, United States Customs Service. 
Personnel from other Customs offices participated in its development.
Michael H. Lane,
Acting Commissioner of Customs.

    Approved: May 16, 1995.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 95-16850 Filed 7-10-95; 8:45 am]
BILLING CODE 4820-02-P