[Federal Register Volume 64, Number 177 (Tuesday, September 14, 1999)]
[Notices]
[Pages 49842-49843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23853]


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DEPARTMENT OF THE TREASURY

Customs Service


Marking of Certain Silk Products and Their Containers

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

ACTION: General notice.

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SUMMARY: This document gives notice of Customs interpretation and 
application of subsection 304(h) of the Tariff Act of 1930, as amended, 
which became effective June 25, 1999. The newly enacted subsection 
304(h) excepts certain silk products from the country of origin marking 
requirements of subsections 304 (a) and (b) of the Tariff Act of 1930, 
as amended. This document also gives notice of the types of marking 
that are required by the Federal Trade Commission to comply with the 
Textile Fiber Products Identification Act.

EFFECTIVE DATE: Applicable to goods entered, or withdrawn from 
warehouse, for consumption, on and after June 25, 1999.

FOR FURTHER INFORMATION CONTACT: Stephen Ecklund (202) 326-3553, 
Federal Trade Commission (regarding questions concerning acceptable 
methods of labeling); Monika Brenner (202) 927-1254 or Robert 
Dinerstein (202) 927-1454, Office of Regulations and Rulings, U.S. 
Customs Service (regarding questions concerning the marking exception 
under section 304).

SUPPLEMENTARY INFORMATION:

Background

    Sections 304 (a) and (b) of the Tariff Act of 1930, as amended (19 
U.S.C. 1304 (a) and (b)), require imported articles of foreign origin 
or their containers, unless excepted, to be marked in a manner that 
indicates to an ultimate purchaser in the United States the name of the 
country of origin of the article. On June 25, 1999, the President 
signed into law the ``Miscellaneous Trade and Technical Corrections Act 
of 1999'' (Pub. L. 106-36, 113 Stat. 127). Section 2423 of the 
Miscellaneous Trade and Technical Corrections Act of 1999 added a new 
subsection (h) to section 304 of the Tariff Act of 1930 to except 
certain silk products from the country of origin marking requirements 
of subsections (a) and (b).
    Under the newly enacted subsection 304(h), articles provided for in 
subheading 6214.10.10 of the Harmonized Tariff Schedule of the United 
States (HTSUS) as in effect on January 1, 1997, and articles provided 
for in heading 5007, HTSUS, as in effect

[[Page 49843]]

on January 1, 1997, or containers of articles provided for in these 
HTSUS provisions, are excepted from the requirement to be marked to 
indicate to an ultimate purchaser in the United States that they are of 
foreign origin. Subheading 6214.10.10, HTSUS (1997), provided for: 
``Shawls, scarves, mufflers, mantillas, veils and the like: of silk or 
silk waste: Containing 70 percent or more by weight of silk or silk 
waste.'' Heading 5007, HTSUS (1997), provided for: ``Woven fabrics of 
silk or of silk waste.''
    Notwithstanding that articles provided for in subheading 6214.10.10 
and heading 5007, HTSUS (1997), are excepted from the foreign country 
of origin marking requirements of subsections 304 (a) and (b), other 
laws enforced by Customs, including 15 U.S.C. 1125, prohibit 
importations of goods bearing false or misleading descriptions of fact. 
In addition, these articles are subject to the marking requirements of 
the Textile Fiber Products Identification Act, 15 U.S.C. 70, et seq., 
and the Federal Trade Commission's (FTC) implementing rules (16 CFR 
Part 303) as administered by the FTC and enforced by the U.S. Customs 
Service with respect to imported articles. The general legal 
requirement is that textile products carry labels or tags to inform 
consumers of, among other things, the name of the country where such 
imported product was processed or manufactured as provided in 16 CFR 
303.33.
    Accordingly, in order to provide information to importers on how 
articles of subheading 6214.10.10 and heading 5007, HTSUS, shall be 
labeled and to explain the meaning of these labels to consumers, the 
following guidance is provided:
    Under the rules of origin for textile and apparel products codified 
at 19 U.S.C. 3592 and as implemented by 19 CFR 102.21, the country of 
origin of articles of subheading 6214.10.10 and heading 5007, HTSUS, is 
the country where the fabric of the article was formed by a fabric-
making process. Since the textile and apparel rules of origin are still 
applicable, the article may not be labeled ``MADE IN (name of 
country)'', unless the designated country is the country of origin 
(where the fabric of the article was formed by a fabric-making 
process).
    However, articles bearing the descriptive terms ``CRAFTED IN 
(Country B)'', ``CRAFTED BY (name of designer and printer) IN (Country 
B)'', ``CREATED IN (Country B)'', or ``CREATED BY (name of designer and 
printer) IN (Country B)'', will not be deemed to bear false or 
misleading descriptions of fact under 15 U.S.C. 1125, notwithstanding 
that the fabric-making process occurs in country A, provided (1) all 
cutting, sewing, and printing or dyeing operations, or (2) all dyeing, 
printing, and at least one finishing operation, such as those listed in 
19 CFR 12.130(e)(1)(i), occur in Country B for articles of subheading 
6214.10.10, HTSUS; or if all dyeing and printing operations occur in 
Country B for articles of heading 5007, HTSUS.
    In addition to the foregoing, while the FTC's Rules and Regulations 
under 16 CFR 303.33(a)(1) state that ``[e]ach imported textile fiber 
product shall be labeled with the name of the country where such 
imported product was processed or manufactured'', the rules do not 
require that any particular words describe the processing or 
manufacturing operations, so long as the information given is accurate 
and not presented in a confusing manner. Accordingly, in addition to 
the terms ``Crafted in'' or ``Created in'' permitted above, where the 
fabric-making process takes place in country A, any of the following 
designations would also be acceptable for the silk products that are 
the subject of this notice, provided the information is truthful:

DESIGNED IN (Country B)
DYED AND PRINTED IN (Country B)
CUT AND SEWN IN (Country B)
FASHIONED IN (Country B)
(Name of designer and printer) of (Country B)
DESIGNED AND PRINTED BY (name of designer) IN (Country B)

    Questions concerning the proper labeling of articles covered in 
these tariff provisions that involve operations performed in the United 
States, other than those described above, should be addressed to the 
Federal Trade Commission, Division of Enforcement, 601 Pennsylvania 
Ave., N.W., Washington, DC. 20580.

Conclusion

    Section 2423 of the Miscellaneous Trade and Technical Corrections 
Act of 1999, which amended section 304 of the Tariff Act of 1930 by 
adding a new subsection (h), provides that articles classified in 
subheading 6214.10.10 and heading 5007, HTSUS (1997), are excepted from 
the country of origin marking requirements of subsections 304 (a) and 
(b). However, these articles are subject to the marking requirements of 
the Textile Fiber Products Identification Act, 15 U.S.C. 70, et seq. 
and 16 CFR Part 303, and may not bear any false descriptions under 15 
U.S.C. 1125. Articles labeled in accordance with the guidance provided 
above will be considered to satisfy the labeling requirements of the 
Textile Fiber Products Identification Act, 15 U.S.C. 70, et seq. and 16 
CFR Part 303, and will not be considered to bear any false 
descriptions.

    Dated: September 8, 1999.
Stuart P. Seidel,
Assistant Commissioner, Office of Regulations and Rulings.
[FR Doc. 99-23853 Filed 9-13-99; 8:45 am]
BILLING CODE 4820-02-P