[Federal Register Volume 60, Number 221 (Thursday, November 16, 1995)]
[Proposed Rules]
[Pages 57558-57560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28253]



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[[Page 57559]]


DEPARTMENT OF THE TREASURY

U.S. Customs Service

19 CFR Part 134

RIN 1515-AB82


Country of Origin Marking

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the Customs Regulations to 
ease the requirement that whenever words appear on an imported article 
indicating the name of a geographic location other than the true 
country of origin of the article, the country of origin marking always 
must appear in close proximity to those words. Customs believes that, 
consistent with the statutory requirements of 19 U.S.C. 1304, the 
country of origin is only necessary to be in close proximity to the 
name of the other geographic location on the imported article if the 
name of the other geographic location may mislead or deceive the 
ultimate purchaser as to the actual country of origin of the imported 
article.

DATES: Comments must be received on or before January 16, 1996.

ADDRESSES: Comments (preferably in triplicate) must be submitted to the 
U.S. Customs Service, ATTN: Regulations Branch, Franklin Court, 1301 
Constitution Avenue, NW., Washington, D.C. 20229 and may be inspected 
at the Regulations Branch, 1099 14th Street, NW., Suite 4000, 
Washington, D.C., between the hours of 9:00 a.m. and 4:30 p.m. on 
regular business days.

FOR FURTHER INFORMATION CONTACT: Anthony Tonucci, Office of Regulations 
and Rulings, 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 
imported into the United States 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 United States 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 are 
the product. Part 134, Customs Regulations (19 CFR Part 134), 
implements the country of origin marking requirements and exceptions of 
19 U.S.C. 1304.
    Section 134.46, Customs Regulations (19 CFR 134.46) provides that 
in any case in which the words ``United States,'' or American,'' the 
letters ``U.S.A.,'' any variation of such words or letters, or the name 
of any city or locality in the United States, or the name of any 
foreign country or locality other than the country or locality in which 
the article was manufactured or produced, appear on an imported article 
or its container, there shall appear, legibly and permanently, in close 
proximity to such words, letters or name, and in at least a comparable 
size, the name of the country of origin preceded by ``Made in,'' 
``Product of,'' or other words of similar meaning.
    A strict application of Sec. 134.46 would require that in any case 
in which a non-origin locality reference appears on an imported article 
or its container, the actual country of origin of the article must 
appear in close proximity and in comparable size lettering to the 
locality reference preceded by the words ``Made in,'' ``Product of,'' 
or other words of similar meaning.
    This document proposes to modify this regulation to reflect Customs 
application of the regulation consistent with 19 U.S.C. 1304. In 
practice, Customs has applied a less stringent standard in determining 
whether the country of origin marking appearing on an imported article 
or its container is acceptable. That is, Customs takes into account the 
question of whether the presence of words or symbols on an imported 
article or its container can mislead or deceive the ultimate purchaser 
as to the actual country of origin of the article. Consequently, if a 
non-origin locality reference appears on an imported article or its 
container, Customs applies the special marking requirements of 
Sec. 134.46 only if it finds that the reference may mislead or deceive 
the ultimate purchaser as to the actual country of origin of the 
imported article. If it is concluded that the non-origin locality 
reference would not mislead or deceive an ultimate purchaser as to the 
actual country of origin of the imported article, Customs policy is 
that the special marking requirements of Sec. 134.46 are not triggered, 
and the origin marking only needs to satisfy the general requirements 
of permanency, legibility and conspicuousness under 19 U.S.C. 1304 and 
19 CFR Part 134. This less stringent application is evidenced in 
numerous Headquarters Customs Rulings.
    For example, Customs has allowed a ``design/decoration'' exception 
for not applying the special marking requirements of Sec. 134.46. In 
Headquarters Ruling Letter (HQ) 732412 of August 29, 1989, Customs 
considered whether jeans met the country of origin marking requirements 
of Sec. 134.46. In that case, the jeans were labeled as follows:

    ``Kansas'' appeared on a fabric label attached to the rear right 
pocket. ``Kansas Jean'' appeared on the rear pocket snaps. 
``Kansas'' and ``Kansas Jeans Navy Wear'' were printed on a leather 
label attached to the front right pocket. And a stylized ``K'' and 
the words ``J. Kansas'' decorated the front button. The country of 
origin of the jeans appeared on a fabric label sewn into the 
waistband.

Noting that Customs often distinguished those special cases in which 
the circumstances were such that reference to a place other than the 
country of origin on an imported article would not confuse the ultimate 
purchaser as to the true country of origin, i.e., design/decoration use 
of locality name and finding that the country of origin marking was 
conspicuous in that it appeared in a usual place, in lettering 
sufficient to be easily found and read, Customs determined that the 
United States references (``Kansas'') did not trigger the marking 
requirements of Sec. 134.46. See also HQ 723604 of November 3, 1983, in 
which ``USA'' letters on men's bikini-style swimming trunks did not 
trigger the marking requirements of 19 CFR 134.46 because such marking 
was used as a symbol or decoration and would not reasonably be 
construed as indicating the country of origin of the article.
    In HQ 733833 of February 19, 1991, however, Customs found that the 
design/decoration exception to Sec. 134.46 was not applicable to the 
letters ``USA'' printed alone next to the name ``Brittania'' on a 
leather-like pouch affixed to a pair of jeans because it could 
potentially mislead an ultimate purchaser and could be considered an 
indication of origin rather than part of the design of the jeans, thus 
triggering the special marking requirements of 19 CFR 134.46.
    Section 134.46 was promulgated pursuant to the statutory authority 
of 19 U.S.C. 1304(a)(2), which provides that the Secretary of the 
Treasury may by regulations require the addition of any words or 
symbols which may be appropriate to prevent deception or mistake as to 
the origin of the article or as to the origin of any other article with 
which such imported article is usually combined subsequent to 
importation but before delivery to an ultimate purchaser. 

[[Page 57560]]

    Customs believes that the strict requirements of Sec. 134.46 are 
not always necessary to ``prevent deception or mistake as to origin of 
the article'' in accordance with 19 U.S.C. 1304. Accordingly, Customs 
is proposing to modify Sec. 134.46 as set forth below.

Proposal

    Customs proposes to amend Sec. 134.46 to reflect the fact that the 
special marking requirements of Sec. 134.46 shall apply only if the 
non-origin reference is likely to mislead or deceive the ultimate 
purchaser as to the actual country of origin of the article.
    This document also proposes to remove Sec. 134.36(b), Customs 
Regulations (19 CFR 134.36(b)). This regulation provides that an 
exception from marking shall not apply to any article or retail 
container bearing any words, letters, names or symbols described in 
Sec. 134.46 or Sec. 134.47 which imply that an article was made or 
produced in a country other than the actual country of origin.
    Since the special marking requirements of Sec. 134.46, as proposed 
to be amended, would be triggered only when the marking appearing on an 
imported article or its container is capable of misleading or deceiving 
an ultimate purchaser as to the actual country of origin of the 
article, Sec. 134.36(b) which serves the same purpose for the ultimate 
purchaser would be redundant and no longer needed.

Comments

    Before adopting this proposal, consideration will be given to any 
written comments (preferably in triplicate) that are timely submitted 
to Customs. All such comments received from the public pursuant to this 
notice of proposed rulemaking 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 
Sec. 103.11(b), Customs Regulations (19 CFR 103.11(b)) during regular 
business days between the hours of 9:00 a.m. and 4:30 p.m. at the 
Regulations Branch, 1099 14th Street, NW., Suite 4000, Washington, D.C.

Regulatory Flexibility Act

    Based on the analysis set forth in the preamble, it is certified 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) that the 
proposed rule, if adopted, will not have a significant economic impact 
on a substantial number of small entities. Accordingly, the rule is not 
subject to the regulatory analysis requirements of 5 U.S.C. 603 and 
604.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

    Drafting Information: The principal author of this document was 
Janet L. Johnson, Regulations Branch, U. S. Customs Service. 
However, personnel from other offices participated in its 
development.

List of Subjects in 19 CFR Part 134

    Customs duties and inspection, Labeling, Packaging and containers.

Proposed Amendments

    It is proposed to amend Part 134, Customs Regulations (19 CFR Part 
134), as set forth below.

PART 134--COUNTRY OF ORIGIN MARKING

    1. The general authority citation for Part 134 would continue to 
read as follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States (HTSUS)), 1304, 
1624.

    2. It is proposed to amend Sec. 134.36 by revising its heading to 
read ``Inapplicability of Marking Exception for Articles Processed by 
Importer'', removing the designation and heading of paragraph (a) and 
removing paragraph (b).
    3. It is proposed to revise Sec. 134.46 to read as follows:


Sec. 134.46  Marking when name of country or locality other than 
country of origin appears.

    In any case in which the words ``United States,'' or ``American,'' 
the letters ``U.S.A.,'' any variation of such words or letters, or the 
name of any city or location in the United States, or the name of any 
foreign country or locality other than the country or locality in which 
the article was manufactured or produced, appear on an imported article 
or its container, which may mislead or deceive the ultimate purchaser 
as to the actual country of origin of the article, there shall appear, 
legibly and permanently, in close proximity to such words, letters or 
name, and in at least a comparable size, the name of the country of 
origin preceded by ``Made in,'' ``Product of,'' or other words of 
similar meaning.

    Approved: September 6, 1995.
George J. Weise,
Commissioner of Customs.
Dennis M. O'Connell,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 95-28253 Filed 11-15-95; 8:45 am]
BILLING CODE 4820-02-P