[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)]
[Rules and Regulations]
[Pages 37678-37679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18135]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Part 134


Use of ``Made in'' and ``Assembled in'' in One Country of Origin 
Marking Statement

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

ACTION: General marking exception.

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SUMMARY: This document advises the public of a general country of 
origin marking exception that will be granted by Customs, commencing 
August 5, 1996, for three months for imported foreign articles which 
reach the ultimate purchaser in the United States containing a marking 
with the words ``Made in,'' ``Product of,'' or words of similar 
meaning, such as ``Knit in,'' along with the use of ``Assembled in'' in 
a single country of origin marking statement.

EFFECTIVE DATE: August 5, 1996, through November 5, 1996.

FOR FURTHER INFORMATION CONTACT: Monika Rice, Special Classification 
and Marking Branch, 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 (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. Part 134, Customs Regulations (19 CFR Part 
134), implements the country of origin marking requirements and 
exceptions of 19 U.S.C. 1304.
    Customs previously has determined that the use of ``Made in,'' 
``Product of,'' or words of similar meaning, such as ``Knit in'' (when 
the country of origin was the country in which an article was knit to 
shape), along with the use of the words ``Assembled in'' in a single 
country of origin marking statement, was acceptable for purposes of 19 
U.S.C. 1304. These prior determinations were based upon Customs 
position that the words, ``Assembled in'' were not a country of origin 
marking indicator, except as provided for in 19 CFR 10.22 for articles 
eligible for subheading 9802.00.80, Harmonized Tariff Schedule of the 
United States (HTSUS), treatment.

[[Page 37679]]

See Headquarters Ruling Letter (HRL) 087271 dated January 17, 1991, 
(the expressions ``Made in China, Assembled in Hong Kong'' or ``Knit in 
China, Assembled in Hong Kong'' were acceptable under 19 U.S.C. 1304 
and 19 CFR 134.46 indicating that the country of origin of sweaters was 
China). But see HRL 733564 dated August 10, 1990 (the marking ``Made in 
Canada'' needed to be removed from hoses manufactured in Canada, after 
assembly with brass fittings in Mexico, as the country of origin of the 
assembled article was Mexico pursuant to 19 CFR 10.22 and the article 
could be marked ``Assembled in Mexico'').
    Due to the confusion generated by 19 CFR 10.22 concerning when it 
is acceptable to use the words ``Assembled in,'' in country of origin 
marking, this section, effective August 5, 1996, will be removed from 
the Customs Regulations as part of a final document which principally 
implemented Annex 311 of the North American Free Trade Agreement (T.D. 
96-48, 61 FR 28932, 28955, June 6, 1996). That final rule document also 
included an amendment to 19 CFR 134.43(e) to provide for the use of the 
phrases, ``Assembled in (country of final assembly),'' ``Assembled in 
(country of final assembly) from components of (name of country or 
countries of origin of all components),'' or ``Made in, or product of, 
(country of final assembly),'' as methods of marking an imported 
article when the country of origin of such article is determined to be 
the country in which it was finally assembled.
    Accordingly, for all goods entered, or withdrawn from warehouse, 
for consumption on or after August 5, 1996, the country of origin 
indicator, ``Assembled in,'' may be used for the marking of imported 
articles only when the country of origin of that article is determined 
to be the country in which the article was finally assembled. Whether 
or not the article is eligible for entry under subheading 9802.00.80, 
HTSUS, will not be relevant to the use of this marking.
    Furthermore, as a result of the amendment of 19 CFR 134.43(e), the 
terms ``Made in'' and ``Assembled in'' are always words of similar 
meaning, and it will no longer be acceptable to use ``Made in,'' 
``Product of,'' or words of similar meaning, along with the words 
``Assembled in'' in a single country of origin marking statement on 
articles of foreign origin imported into the United States.
    However, the marking statute and regulations allow for exceptions 
to the marking requirements under certain circumstances. One of these 
exceptions concerns articles which cannot be marked prior to, or after, 
importation except at an expense that would be economically 
prohibitive. See 19 U.S.C. 1304(a)(3) (C) and (K), and 19 CFR 134.32 
(c) and (o).
    In consideration of: (1) the fact that the use of ``Made in,'' 
``Product of,'' or words of similar meaning, along with the use of the 
words ``Assembled in'' in a single country of origin marking statement 
has been acceptable until the amendment of 19 CFR 134.43(e), and many 
articles or labels containing such statements may have already been 
made; (2) the expectation that many individual requests will be 
received for marking exceptions on the ground of economic 
prohibitiveness; and (3) the importance of providing uniform Customs 
treatment, Headquarters has made a general finding under these 
circumstances that it would be economically prohibitive to require the 
marking of imported foreign articles (either before or after 
importation) in compliance with 19 CFR 134.43(e), as amended, as of the 
effective date of the new regulations. This general marking exception 
shall be granted for all imported foreign articles marked ``Made in,'' 
``Product of,'' or words of similar meaning, such as ``Knit in,'' along 
with the use of the words ``Assembled in'' in a single country of 
origin marking statement, for a period not to exceed three (3) months 
from the effective date of 19 CFR 134.43(e), as amended, (i.e., no 
later than November 5, 1996), which Customs views as a reasonable 
period of time for the exhaustion of existing inventory. Please note 
that, if information is obtained that the above articles or labels were 
made after August 5, 1996, this general marking exception will not 
apply.

    Dated: July 11, 1996.
Stuart P. Seidel,
Assistant Commissioner, Office of Regulations and Rulings.
[FR Doc. 96-18135 Filed 7-18-96; 8:45 am]
BILLING CODE 4820-02-P