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Customs Labeling - Seafood Inspection Program

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I. SUBJECT: Country-of-Origin and "Product of U.S." Declaration Requirements<br />

II. AUTHORITY: 19 CFR 134, 50 CFR 260.90, and 21 CFR 101.<br />

III. PURPOSE: To assure that USDC, cross-licensed inspectors, and official establishments<br />

which process imported fishery products have access to accurate labeling information regarding<br />

label declaration requirements of the U.S. <strong>Customs</strong> and FDA.<br />

IV. GENERAL: The U.S. <strong>Customs</strong> Service requires that an imported fishery product declare the<br />

country-of-origin on its label in the manner prescribed in 19 CFR 134 (Attachment #1) for<br />

the product to be passed through <strong>Customs</strong> for entry into the U.S.<br />

On June 23, 1988, U.S. <strong>Customs</strong> issued a ruling specific to raw peeled and raw peeled and<br />

deveined (P&D) shrimp products processed from imported raw material (Attachment #2). In<br />

connection with that ruling, FDA stated that such product could not bear the statement<br />

"Product of U.S.A." because it was a false and misleading representation of the product as<br />

identified in 21 CFR 101.18 (Attachment #3).<br />

Following several meetings among U.S. <strong>Customs</strong>, FDA, and NMFS, an approach to labeling<br />

such product was agreed upon and the agreement was issued to shrimp industry members<br />

directly affected by the ruling (Attachment #4). A course of action for addressing similar<br />

labeling questions for other shrimp and fishery products was also identified.<br />

The following is intended to provide clear guidance to USDC inspectors toward<br />

(1) ensuring the proper labeling of raw peeled and raw P&D shrimp processed from<br />

imported raw material and,<br />

(2) responding to questions from program participants pertaining to other products<br />

processed from imported raw material.<br />

V. PROCEDURES - <strong>Labeling</strong> Statements on USDC Approved Labels


A. General<br />

1. Use of U.S. Grade and/or PUFI marks or statement(s) is acceptable on products<br />

processed from imported raw material.<br />

2. Use of the statement "Product of U.S.A." or "Product of the U.S." is acceptable IF<br />

the product is processed from domestically harvested raw material.<br />

3. Use of the statement "Processed in the U.S." or "Processed in the U.S.A." is<br />

acceptable on products processed from domestic and imported raw material.<br />

B. Marking Options - The marking requirements may be satisfied through:<br />

1. the use of permanently printed labels bearing the specific country or countries of<br />

origin,<br />

2. the stamping of the country or countries of origin in a blank area of the permanent<br />

printed label, or<br />

3. some other equally permanent method (for example, the use of a sticker identifying<br />

the country or countries of origin affixed to the printed label. If paper stickers or<br />

pressure sensitive labels are used, they must be affixed in a conspicuous place and be<br />

so secure that unless deliberately removed they will remain on the article while it is in<br />

storage or on display and until it is delivered to the ultimate purchaser.)<br />

C. Specific Product Labels<br />

1. Raw peeled and P&D shrimp processed from imported raw material:<br />

a. must bear country(ies)-of-origin statement. Identification of more than one<br />

country of origin is appropriate in the statement provided that the lot of product<br />

in fact is composed of the countries identified (e.g., "Product of China, Ecuador,<br />

and Thailand").<br />

b. must NOT bear "Product of U.S.A." or "Product of U.S." statement. May bear<br />

"Processed in U.S.A." or "Processed in the U.S." statement.<br />

c. may bear U.S. Grade and/or PUFI mark(s).<br />

2. All other shrimp and fishery products processed from imported raw material:<br />

2


a. Requirement of a country-of-origin statement on these products has not been<br />

determined by <strong>Customs</strong>. <strong>Customs</strong> has issued a formal ruling (as a result of<br />

industry request) on raw peeled and raw P&D shrimp products only. Further<br />

information regarding countryof-origin labeling is available from:<br />

Mr. Marvin Amernick<br />

Office of Regulations and Rulings<br />

U.S. <strong>Customs</strong> Service<br />

Department of the Treasury<br />

1301 Constitution Avenue, N.W.<br />

Washington, D.C. 20229<br />

b. The following are labeling options for these products:<br />

1) U.S. Grade and/or PUFI statements or marks(s).<br />

2) "Processed in the U.S." or "Processed in the U.S.A."<br />

3) "Product of U.S.A." or "Product of U.S." statement IF <strong>Customs</strong> has<br />

determined "substantial transformation" AND following FDA approval.<br />

For product manufactured from imported raw material FDA has stated that if<br />

<strong>Customs</strong> determines that the original imported product has undergone a<br />

"substantial transformation" during processing and that the processed product<br />

is thereby excepted from continued country-of-origin marking of the starting<br />

material, FDA will consider, on a case- by-case basis, whether a "Product of<br />

U.S." statement would be truthful and not misleading to a potential purchaser.<br />

FDA has advised that a statement such as "Processed in the U.S." would be<br />

acceptable in any case.<br />

Should a program participant believe that his/ her product (processed from<br />

foreign material) warrants the use of the term "Product of U.S." or equivalent<br />

statements, they must submit supportive information and a copy of the label or<br />

proposed label to the Approving officer who will forward it to FDA for review<br />

and decision (in accordance with the MOU between FDA and NMFS).<br />

Changes to labels previously approved by NMFS should be submitted to the<br />

Approving officer, National <strong>Seafood</strong> <strong>Inspection</strong> Laboratory.<br />

3


Chapter 1-United States <strong>Customs</strong> Service<br />

PART 134 -COUNTRY OF ORIGIN MARKING<br />

134.0 Scope.<br />

Subpart A-General Provisions<br />

134.1 Definitions.<br />

134.2 Additional duties.<br />

134.3 Delivery withheld until marked and redelivery ordered.<br />

134.4 Penalties for removal, defacement, or alteration of marking.<br />

Subpart B-Articles Subject to Marking<br />

134.11 Country of origin marking required.<br />

134.12 Foreign articles reshipped from a U.S. possession.<br />

134.13 Imported articles repacked or manipulated.<br />

134.14 Articles usually combined.<br />

Subpart C-Marking of Containers or Holders<br />

134.21 Special marking.<br />

134.22 General rules for marking of containers or holders.<br />

134.23 Containers or holders designed for or capable of reuse.<br />

134.24 Containers or holders not designed for or capable of reuse.<br />

134.25 Containers or holders for repacked J-list articles and articles incapable of being marked.<br />

134.26 Imported articles repacked or manipulated.<br />

Subpart D-Exceptions to Marking Requirements<br />

134.31 Requirements of other agencies.<br />

134.32 General exceptions to marking requirements.<br />

134.33 J-List exceptions.<br />

134.34 Certain repacked articles.<br />

134.35 Articles substantially changed by manufacture.<br />

134.36 Inapplicability of exceptions.<br />

Subpart E-Method and Location of Marking Imported Articles<br />

134.41 Methods and manner of marking.<br />

134.42 Specific method may be required.<br />

134.43 Methods of marking specific articles.<br />

134.44 Location and other acceptable methods of marking.<br />

134.45 Approved markings of country name.<br />

134.46 Marking when name of country or locality other than country of origin appears.<br />

134.47 Souvenirs and articles marked with trademarks or trade names.<br />

Subpart F-Articles Found Not Legally Marked<br />

134.51 Procedure when importation found not legally marked.<br />

134.52 Certificate of marking.<br />

134.53 Examination packages.<br />

134.54 Articles released from <strong>Customs</strong> custody.<br />

134.55 Compensation of <strong>Customs</strong> officers and employees.<br />

Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 20, Harmonized Tariff Schedule of the United<br />

States), 1304, 1624.<br />

Source: T.D. 72-262, 37 FR 20318, Sept. 29, 1972, unless otherwise noted.<br />

1<br />

Attachment #1<br />

(May 1985)


§ 134.0 Scope.<br />

Title 19-<strong>Customs</strong> Duties<br />

This part sets forth regulations implementing the country of origin marking requirements and exceptions of section<br />

304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), together with certain marking provisions of the<br />

Harmonized Tariff Schedule of the United States (19 U.S.C. 1202). The consequences and procedures to be<br />

followed when articles are not legally marked are set forth in this part. The consequences and procedures to be<br />

followed when articles are falsely marked are set forth in §11.13 of this chapter. Special marking and labeling<br />

requirements are covered elsewhere. Provisions regarding the review and appeal rights of exporters and producers<br />

resulting from adverse North American Free Trade Agreement marking decisions are contained in subpart J of part<br />

181 of this chapter.<br />

[T.D. 81-290, 46 FR 58070, Nov. 30, 1981, as amended by T.D. 89-1, 53 FR 51255, Dec. 21, 1988; T.D. 94-1,<br />

58 FR 69471, Dec. 30, 1993]<br />

Subpart A-General Provisions<br />

§ 134.1 Definitions.<br />

When used in this part, the following terms shall have the meaning indicated:<br />

(a) Country. ``Country'' means the political entity known as a nation. Colonies, possessions, or protectorates<br />

outside the boundaries of the mother country are considered separate countries.<br />

(b) Country of origin. ``Country of origin'' means the country of manufacture, production, or growth of any article<br />

of foreign origin entering the United States. Further work or material added to an article in another country must<br />

effect a substantial transformation in order to render such other country the ``country of origin'' within the meaning<br />

of this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of<br />

origin.<br />

(c) Foreign origin. ``Foreign origin'' refers to a country of origin other than the United States, as defined in<br />

paragraph (e) of this section, or its possessions and territories.<br />

(d) Ultimate purchaser. The ``ultimate purchaser'' is generally the last person in the United States who will receive<br />

the article in the form in which it was imported; however, for a good of a NAFTA country, the ``ultimate<br />

purchaser'' is the last person in the United States who purchases the good in the form in which it was imported.<br />

It is not feasible to state who will be the ``ultimate purchaser'' in every circumstance. The following examples may<br />

be helpful:<br />

(1) If an imported article will be used in manufacture, the manufacturer may be the ``ultimate purchaser'' if he<br />

subjects the imported article to a process which results in a substantial transformation of the article, even though<br />

the process may not result in a new or different article, or for a good of a NAFTA country, a process which results<br />

in one of the changes prescribed in the NAFTA Marking Rules as effecting a change in the article's country of<br />

origin.<br />

(2) If the manufacturing process is merely a minor one which leaves the identity of the imported article intact, the<br />

consumer or user of the article, who obtains the article after the processing, will be regarded as the ``ultimate<br />

purchaser.'' With respect to a good of a NAFTA country, if the manufacturing process does not result in one of<br />

the changes prescribed in the NAFTA Marking Rules as effecting a change in the article's country of origin, the<br />

consumer who purchases the article after processing will be regarded as the ultimate purchaser.<br />

2 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

(3) If an article is to be sold at retail in its imported form, the purchaser at retail is the ``ultimate purchaser.''<br />

(4) If the imported article is distributed as a gift the recipient is the ``ultimate purchaser'', unless the good is a good<br />

of a NAFTA country. In that case, the purchaser of the gift is the ultimate purchaser.<br />

(e) United States. ``United States'' includes all territories and possessions of the United States, except the Virgin<br />

Islands, American Samoa, Wake Island, Midway Islands, Kingman Reef, Johnston Island, and the island of Guam.<br />

(f) <strong>Customs</strong> territory of the United States. ``<strong>Customs</strong> territory of the United States,'' as used in this chapter<br />

includes the States, the District of Columbia, and the Commonwealth of Puerto Rico.<br />

(g) Good of a NAFTA country. A ``good of a NAFTA country'' is an article for which the country of origin is<br />

Canada, Mexico or the United States as determined under the NAFTA Marking Rules.<br />

(h) NAFTA. ``NAFTA'' means the North American Free Trade Agreement entered into by the United States,<br />

Canada and Mexico on August 13, 1992.<br />

(i) NAFTA country. ``NAFTA country'' means the territory of the United States, Canada or Mexico, as defined<br />

in Annex 201.1 of the NAFTA.<br />

(j) NAFTA Marking Rules. The ``NAFTA Marking Rules'' are the rules promulgated for purposes of determining<br />

whether a good is a good of a NAFTA country.<br />

(k) Conspicuous. ``Conspicuous'' means capable of being easily seen with normal handling of the article or<br />

container.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94-1, 58 FR 69471, Dec. 30, 1993; T.D.<br />

95-68, 60 FR 46362, Sept. 6, 1995]<br />

§ 134.2 Additional duties.<br />

Articles not marked as required by this part shall be subject to additional duties of 10 percent of the final appraised<br />

value unless exported or destroyed under <strong>Customs</strong> supervision prior to liquidation of the entry, as provided in 19<br />

U.S.C. 1304(f). The 10 percent additional duty is assessable for failure either to mark the article (or container)<br />

to indicate the English name of the country of origin of the article or to include words or symbols required to<br />

prevent deception or mistake.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 90-51, 55 FR 28190, July 10, 1990]<br />

§ 134.3 Delivery withheld until marked and redelivery ordered.<br />

(a) Any imported article (or its container) held in <strong>Customs</strong> custody for inspection, examination, or appraisement<br />

shall not be delivered until marked with its country of origin, or until estimated duties payable under 19 U.S.C.<br />

1304(f), or adequate security for those duties (see §134.53(a)(2)), are deposited.<br />

(b) The port director may demand redelivery to <strong>Customs</strong> custody of any article (or its container) previously<br />

released which is found to be not marked legally with its country of origin for the purpose of requiring the article<br />

3<br />

Attachment #1<br />

(May 1985)


Title 19-<strong>Customs</strong> Duties<br />

(or its container) to be properly marked. a demand for redelivery shall be made, as required under §141.113(a)<br />

of this chapter, not later than 30 days after-<br />

(1) The date of entry, in the case of merchandise examined in public stores and places of arrival, such as docks,<br />

wharfs, or piers; or<br />

(2) The date of examination, in the case of merchandise examined at the importer's premises or such other<br />

appropriate places as determined by the port director.<br />

(c) Nothing in this part shall be construed as excepting any article (or its container) from the particular<br />

requirements of marking provided for in any other provision of law.<br />

[T.D. 80-88, 45 FR 18921, Mar. 24, 1980, as amended by T.D. 90-51, 55 FR 28190, July 10, 1990]<br />

§ 134.4 Penalties for removal, defacement, or alteration of marking.<br />

Any intentional removal, defacement, destruction, or alteration of a marking of the country of origin required by<br />

section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), and this part in order to conceal this information<br />

may result in criminal penalties of up to $5,000 and/or imprisonment for 1 year, as provided in 19 U.S.C. 1304(h).<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 90-51, 55 FR 28191, July 10, 1990]<br />

Subpart B-Articles Subject to Marking<br />

§ 134.11 Country of origin marking required.<br />

Unless excepted by law, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), requires that every article<br />

of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as<br />

legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such manner as to<br />

indicate to an ultimate purchaser in the United States the English name of the country of origin of the article, at<br />

the time of importation into the <strong>Customs</strong> territory of the United States. Containers of articles excepted from<br />

marking shall be marked with the name of the country of origin of the article unless the container is also excepted<br />

from marking.<br />

§ 134.12 Foreign articles reshipped from a U.S. possession.<br />

Articles of foreign origin imported into any possession of the United States outside its <strong>Customs</strong> territory and<br />

reshipped to the United States are subject to all marking requirements applicable to like articles of foreign origin<br />

imported directly from a foreign country to the United States.<br />

§ 134.13 Imported articles repacked or manipulated.<br />

(a) Marking requirement. An article within the provisions of this section shall be marked with the name of the<br />

country of origin at the time the article is withdrawn for consumption unless the article and its container are<br />

exempted from marking under provisions of subpart D of this part at the time of importation.<br />

4 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

(b) Applicability. The provisions of this section are applicable to the following articles:<br />

(1) Articles repacked in a bonded warehouse under §19.8 of this chapter;<br />

(2) Articles manipulated under section 562, Tariff Act of 1930, as amended (19 U.S.C. 1562), and §19.11 of this<br />

chapter;<br />

(3) Articles manipulated, but not manufactured, in a foreign-trade zone under §146.32 of this chapter.<br />

§ 134.14 Articles usually combined.<br />

(a) Articles combined before delivery to purchaser. When an imported article is of a kind which is usually<br />

combined with another article after importation but before delivery to an ultimate purchaser and the name<br />

indicating the country of origin of the article appears in a place on the article so that the name will be visible after<br />

such combining, the marking shall include, in addition to the name of the country of origin, words or symbols<br />

which shall clearly show that the origin indicated is that of the imported article only and not that of any other<br />

article with which the imported article may be combined after importation.<br />

(b) Example. Labels and similar articles so marked that the name of the country of origin of the label or article<br />

is visible after it is affixed to another article in this country shall be marked with additional descriptive words such<br />

as ``Label made (or printed) in (name of country)'' or words of similar meaning. See subpart C of this part for<br />

marking of bottles, drums, or other containers.<br />

(c) Applicability. This section shall not apply to articles of a kind which are ordinarily so substantially changed<br />

in the United States that the articles in their changed condition become products of the United States. An article<br />

excepted from marking under subpart D of this part is not within the scope of section 304(a)(2), Tariff Act of<br />

1930, as amended (19 U.S.C. 1304(a)(2)), and is not subject to the requirements of this section.<br />

Subpart C-Marking of Containers or Holders<br />

§ 134.21 Special marking.<br />

This subpart includes only country of origin marking requirements and exceptions under section 304(b), Tariff<br />

Act of 1930, as amended (19 U.S.C. 1304(b)), for containers or holders. Special marking may be required by the<br />

Internal Revenue Service on alcoholic beverage bottles and other requirements may be imposed by reason of the<br />

nature of the contents by other Government agencies.<br />

§ 134.22 General rules for marking of containers or holders.<br />

(a) Contents excepted from marking. When an article is excepted from the marking requirements by subpart D of<br />

this part, the outermost container or holder in which the article ordinarily reaches the ultimate purchaser shall be<br />

marked to indicate the country of origin of the article whether or not the article is marked to indicate its country<br />

of origin.<br />

(b) Containers or holders treated as imported articles. Containers or holders for imported merchandise which are<br />

subject to treatment as imported articles under the Harmonized Tariff Schedule of the United States (19 U.S.C.<br />

5<br />

Attachment #1<br />

(May 1985)


Title 19-<strong>Customs</strong> Duties<br />

1202), shall be marked to indicate clearly the country of their own origin in addition to any marking which may<br />

be required to show the country of origin of their contents; however, no marking is required for any good of a<br />

NAFTA country which is a usual container.<br />

(c) Containers or holders bearing a U.S. address. Containers or holders of imported merchandise bearing the name<br />

and address of an importer, distributor, or other person or company in the United States shall be marked in close<br />

proximity to the U.S. address to indicate clearly the country of origin of the contents with a marking such as<br />

``Contents made in France'' or ``Contents Product of Spain.''<br />

(d) Usual containers-(1) ``Usual container'' defined. For purposes of this subpart, a usual container means the<br />

container in which a good will ordinarily reach its ultimate purchaser. Containers which are not included in the<br />

price of the goods with which they are sold, or which impart the essential character to the whole, or which have<br />

significant uses, or lasting value independent of the contents, will generally not be regarded as usual containers.<br />

However, the fact that a container is sturdy and capable of repeated use with its contents does not preclude it from<br />

being considered a usual container so long as it is the type of container in which its contents are ordinarily sold.<br />

A usual container may be any type of container, including one which is specially shaped or fitted to contain a<br />

specific good or set of goods such as a camera case or an eyeglass case, or packing, storage and transportation<br />

materials.<br />

(2) A good of a NAFTA country which is a usual container. A good of a NAFTA country which is a usual<br />

container, whether or not disposable and whether or not imported empty or filled, is not required to be marked with<br />

its own country of origin. If imported empty, the importer must be able to provide satisfactory evidence to <strong>Customs</strong><br />

at the time of importation that it will be used only as a usual container (that it is to be filled with goods after<br />

importation and that such container is of a type in which these goods ordinarily reach the ultimate purchaser).<br />

(e) Exceptions. Containers or holders of imported articles are not required to be marked if:<br />

(1) Excepted articles. They are containers or holders of articles within the exceptions set forth in paragraph (f),<br />

(g), or (h) in §134.32 or they are containers of a good of a NAFTA country within the exceptions set forth in<br />

paragraph (e), (f), (g), (h), (i), (p) or (q) of §134.32.<br />

(2) Excepted containers or holders. The container or holder itself is within an exception set forth in subpart D of<br />

this part.<br />

(3) To be filled by the importer. The container or holder is within the exception set forth in §134.24(c).<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94-1, 58 FR 69471, Dec. 30, 1993]<br />

§ 134.23 Containers or holders designed for or capable of reuse.<br />

(a) Usual and ordinary reusable containers or holders. Except for goods of a NAFTA country which are usual<br />

containers, containers or holders designed for or capable of reuse after the contents have been consumed, whether<br />

imported full or empty, must be individually marked to indicate the country of their own origin with a marking<br />

such as, ``Container Made in (name of country).'' Examples of the containers or holders contemplated are heavy<br />

duty steel drums, tanks, and other similar shipping, storage, transportation containers or holders capable of reuse.<br />

These containers or holders are subject to the treatment specified in General Rule of Interpretation 5(b),<br />

Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).<br />

6 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

(b) Other reusable containers or holders. Containers or holders which give the whole importation its essential<br />

character, as described in General Rule of Interpretation 5(a) (19 U.S.C. 1202), must be individually marked to<br />

clearly indicate their own origin with a marking such as, ``Container made in (name of country).'' Examples of the<br />

containers contemplated are mustard jars reusable as beer mugs; shaving soap containers reusable as shaving<br />

mugs; fancy cologne bottles reusable as flower vases, and other containers which have a lasting value or decorative<br />

use.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 89-1, 53 FR 51256, Dec. 21, 1988; T.D.<br />

94-1, 58 FR 69471, Dec. 30, 1993]<br />

§ 134.24 Containers or holders not designed for or capable of reuse.<br />

(a) Containers ordinarily discarded after use. Disposable containers or holders subject to the provisions of this<br />

section are the usual ordinary types of containers or holders, including cans, bottles, paper or polyethylene bags,<br />

paperboard boxes, and similar containers or holders which are ordinarily discarded after the contents have been<br />

consumed.<br />

(b) Imported empty. Disposable containers or holders imported for distribution or sale are subject to treatment as<br />

imported articles in accordance with the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), and<br />

shall be marked to indicate clearly the country of their own origin. However, when the containers are packed and<br />

sold in multiple units (dozens, gross, etc.), this requirement ordinarily may be met by marking the outermost<br />

container which reaches the ultimate purchaser.<br />

(c) Imported to be filled-(1) If unmarked. When disposable containers or holders or usual containers which are<br />

goods of a NAFTA country are imported by persons or firms who fill or package them with various products<br />

which they sell, these persons or firms are the ``ultimate purchasers'' of these containers or holders or usual<br />

containers which are goods of a NAFTA country and they may be excepted from individual marking pursuant to<br />

19 U.S.C. 1304(a)(3)(D). The outside wrappings or packages containing the containers shall be clearly marked<br />

to indicate the country of origin.<br />

(2) If marked. If the disposable containers or holders or the usual containers which are goods of a NAFTA country<br />

are marked with the country of origin at the time of importation and the marking will be visible after they are filled,<br />

the marking shall clearly indicate that the container only and not the contents were made in the named country. For<br />

example, bottles, drums, or other containers imported empty, to be filled in the United States, shall be marked with<br />

such words as ``Bottle (or container) made in (name of country).''<br />

(d) Imported full-(1) When contents are excepted from marking. Usual disposable containers in use as such at the<br />

time of importation shall not be required to be marked to show the country of their own origin, but shall be marked<br />

to indicate the origin of their contents regardless of the fact that the contents are excepted from marking<br />

requirements; however, such marking is not required if the contents are excepted from marking requirements under<br />

paragraph (f), (g), or (h) of §134.32 or, in the case of a good of a NAFTA country, under paragraph (e), (f), (g),<br />

(h), (i), (p) or (q) of that section.<br />

(2) Sealed containers or holders. Disposable containers or holders of imported merchandise, which are sold without<br />

normally being opened by the ultimate purchaser (e.g., individually wrapped soap bars or tennis balls in a vacuum<br />

sealed can), shall be marked to indicate the country of origin of their contents.<br />

7<br />

Attachment #1<br />

(May 1985)


Title 19-<strong>Customs</strong> Duties<br />

(3) Unsealed containers. Unsealed disposable containers of imported merchandise normally unopened by the<br />

ultimate purchaser, may be excepted from marking if the article is so marked that the country of origin is clearly<br />

visible without unpacking the container. However, if the container is normally opened by the ultimate purchaser<br />

prior to purchase, only the article need be marked.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 89-1, 53 FR 51255, Dec. 21, 1988; T.D.<br />

94-1, 58 FR 69471, Dec. 30, 1993]<br />

§ 134.25 Containers or holders for repacked J-list articles and articles incapable of being<br />

marked.<br />

(a) Certification requirements. If an article subject to these requirements is intended to be repacked in new<br />

containers for sale to an ultimate purchaser after its release from <strong>Customs</strong> custody, or if the port director having<br />

custody of the article, has reason to believe such article will be repacked after its release, the importer shall certify<br />

to the port director that: (1) If the importer does the repacking, the new container shall be marked to indicate the<br />

country of origin of the article in accordance with the requirements of this part; or (2) if the article is intended to<br />

be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or transferee,<br />

in writing, at the time of sale or transfer, that any repacking of the article must conform to these requirements. The<br />

importer, or his authorized agent, shall sign the following statement.<br />

Certificate of Marking-Repacked J-List Articles and Articles Incapable of Being Marked<br />

(Port of entry)<br />

I, of , certify that if the article(s) covered by this entry (entry no.(s)<br />

dated ), is (are) repacked in a new container(s), while still in my possession, the new<br />

containers, unless excepted, shall be marked in a conspicuous place as legibly, indelibly, and permanently as the<br />

nature of the container(s) will permit, in such manner as to indicate the country of origin of the article(s) to the<br />

ultimate purchaser(s) in accordance with the requirements of 19 U.S.C. 1304 and 19 CFR part 134. I further<br />

certify that if the article(s) is (are) intended to be sold or transferred by me to a subsequent purchaser or repacker,<br />

I will notify such purchaser or transferee, in writing, at the time of sale or transfer, of the marking requirements.<br />

Date<br />

Importer<br />

The certification statement may appear as a typed or stamped statement on an appropriate entry document or<br />

commercial invoice, or on a preprinted attachment to such entry or invoice; or it may be submitted in blanket form<br />

to cover all importations of a particular product for a given period (e.g., calendar year). If the blanket procedure<br />

is used, a certification must be filed at each port where the article is entered.<br />

(b) Facsimile signatures. The certification statement may be signed by means of an authorized facsimile signature.<br />

(c) Time of filing. The certification statement shall be filed with the port director at the time of entry summary.<br />

If the certification is not available at that time, a bond shall be given for its production in accordance with §141.66,<br />

<strong>Customs</strong> Regulations (19 CFR 141.66). In case of repeated failure to timely file the certification required under<br />

this section, the port director may decline to accept a bond for the missing document and demand redelivery of the<br />

merchandise under §134.51, <strong>Customs</strong> Regulations (19 CFR 134.51).<br />

8 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

(d) Notice to subsequent purchaser or repacker. If the article is sold or transferred to a subsequent purchaser or<br />

repacker the following notice shall be given to the purchaser or repacker:<br />

Notice to Subsequent Purchaser or Repacker<br />

These articles are imported. The requirements of 19 U.S.C. 1304 and 19 CFR part 134 provide that the articles<br />

or their containers must be marked in a conspicuous place as legibly, indelibly and permanently as the nature of<br />

the article or container will permit, in such a manner as to indicate to an ultimate purchaser in the United States,<br />

the English name of the country of origin of the article.<br />

(e) Duties and penalties. Failure to comply with the certification requirements in paragraph (a) may subject the<br />

importer to a demand for liquidated damages under §134.54(a) and for the additional duty under 19 U.S.C. 1304.<br />

Fraud or negligence by any person in furnishing the required certification may also result in a penalty under 19<br />

U.S.C. 1592.<br />

[T.D. 83-155, 48 FR 33863, July 26, 1983]<br />

§ 134.26 Imported articles repacked or manipulated.<br />

(a) Certification requirements. If an article subject to these requirements is intended to be repacked in retail<br />

containers (e.g., blister packs) after its release from <strong>Customs</strong> custody, or if the port director having custody of the<br />

article, has reason to believe such article will be repacked after its release, the importer shall certify to the port<br />

director that: (1) If the importer does the repacking, he shall not obscure or conceal the country of origin marking<br />

appearing on the article, or else the new container shall be marked to indicate the country of origin of the article<br />

in accordance with the requirements of this part; or (2) if the article is intended to be sold or transferred to a<br />

subsequent purchaser or repacker, the importer shall notify such purchaser or transferee, in writing, at the time<br />

of sale or transfer, that any repacking of the article must conform to these requirements. The importer, or his<br />

authorized agent, shall sign the following statement.<br />

Certificate of Marking by Importer-Repacked Articles Subject to Marking<br />

(Port of entry)<br />

I, ---- of ----, certify that if the article(s) covered by this entry (entry no.(s) --- dated ---), is (are) repacked in retail<br />

container(s) e.g., blister packs), while still in my possession, the new container(s) will not conceal or obscure the<br />

country of origin marking appearing on the article(s), or else the new container(s), unless excepted, shall be marked<br />

in a conspicuous place as legibly, indelibly, and permanently as the nature of the container(s) will permit, in such<br />

manner as to indicate the country of origin of the article(s) to the ultimate purchaser(s) in accordance with the<br />

requirements of 19 U.S.C. 1304 and 19 CFR part 134. I further certify that if the article(s) is (are) intended to be<br />

sold or transferred by me to a subsequent purchaser or repacker, I will notify such purchaser or transferee, in<br />

writing, at the time of sale or transfer, of the marking requirements.<br />

Date<br />

Importer<br />

9<br />

Attachment #1<br />

(May 1985)


Title 19-<strong>Customs</strong> Duties<br />

The certification statement may appear as a typed or stamped statement on an appropriate entry document or<br />

commercial invoice, or on a preprinted attachment to such entry or invoice; or it may be submitted in blanket form<br />

to cover all importations of a particular product for a given period (e.g., calendar year). If the blanket procedure<br />

is used, a certification must be filed at each port where the article(s) is entered.<br />

(b) Facsimile signatures. The certification statement may be signed by means of an authorized facsimile signature.<br />

(c) Time of filing. The certification statement shall be filed with the port director at the time of entry summary.<br />

If the certification is not available at that time, a bond shall be given for its production in accordance with §141.66,<br />

<strong>Customs</strong> Regulations (19 CFR 141.66). In case of repeated failure to timely file the certification required under<br />

this subsection, the port director may decline to accept a bond for the missing document and demand redelivery<br />

of the merchandise under §134.51, <strong>Customs</strong> Regulations (19 CFR 134.51).<br />

(d) Notice to subsequent purchaser or repacker. If the article is sold or transferred to a subsequent purchaser or<br />

repacker the following notice shall be given to the purchaser or repacker:<br />

Notice to Subsequent Purchaser or Repacker<br />

These articles are imported. The requirements of 19 U.S.C. 1304 and 19 CFR part 134 provide that the articles<br />

in their containers must be marked in a conspicuous place as legibly, indelibly and permanently as the nature of<br />

the article or container will permit, in such a manner as to indicate to an ultimate purchaser in the United States,<br />

the English name of the country of origin of the article.<br />

(e) Duties and penalties. Failure to comply with the certification requirements in paragraph (a) may subject the<br />

importer to a demand for liquidated damages under §134.54(a) and for the additional duty under 19 U.S.C. 1304.<br />

Fraud or negligence by any person in furnishing the required certification may also result in a penalty under 19<br />

U.S.C. 1592.<br />

(f) Exceptions. The requirements of this section do not apply to repackaging in a container that can readily be<br />

opened for inspection by the ultimate purchaser in the United States, unless such container bears a U.S. address<br />

or other potentially misleading marking.<br />

[T.D. 84-127, 49 FR 22795, June 1, 1984]<br />

Subpart D-Exceptions to Marking Requirements<br />

§ 134.31 Requirements of other agencies.<br />

Nothing in this subpart shall be construed as excepting any article (or its container) from the particular<br />

requirements of marking provided for in any other provision of any law, such as those of the Federal Trade<br />

Commission, Food and Drug Administration, and other agencies.<br />

§ 134.32 General exceptions to marking requirements.<br />

The articles described or meeting the specified conditions set forth below are excepted from marking requirements<br />

(see subpart C of this part for marking of the containers):<br />

10 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

(a) Articles that are incapable of being marked;<br />

(b) Articles that cannot be marked prior to shipment to the United States without injury;<br />

(c) Articles that cannot be marked prior to shipment to the United States except at an expense economically<br />

prohibitive of its importation;<br />

(d) Articles for which the marking of the containers will reasonably indicate the origin of the articles;<br />

(e) Articles which are crude substances;<br />

(f) Articles imported for use by the importer and not intended for sale in their imported or any other form;<br />

(g) Articles to be processed in the United States by the importer or for his account otherwise than for the purpose<br />

of concealing the origin of such articles and in such manner that any mark contemplated by this part would<br />

necessarily be obliterated, destroyed, or permanently concealed;<br />

(h) Articles for which the ultimate purchaser must necessarily know, or in the case of a good of a NAFTA country,<br />

must reasonably know, the country of origin by reason of the circumstances of their importation or by reason of<br />

the character of the articles even though they are not marked to indicate their origin;<br />

(i) Articles which were produced more than 20 years prior to their importation into the United States;<br />

(j) Articles entered or withdrawn from warehouse for immediate exportation or for transportation and exportation;<br />

(k) Products of American fisheries which are free of duty;<br />

(l) Products of possessions of the United States;<br />

(m) Products of the United States exported and returned;<br />

(n) Articles exempt from duty under §§10.151 through 10.153, 145.31 or 145.32 of this chapter;<br />

(o) Articles which cannot be marked after importation except at an expense that would be economically prohibitive<br />

unless the importer, producer, seller, or shipper failed to mark the articles before importation to avoid meeting the<br />

requirements of the law;<br />

(p) Goods of a NAFTA country which are original works of art; and<br />

(q) Goods of a NAFTA country which are provided for in subheading 6904.10 or heading 8541 or 8542 of the<br />

Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202).<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 73-135, 38 FR 13369, May 21, 1973; T.D.<br />

73-175, 38 FR 17447, July 2, 1973; T.D. 94-1, 58 FR 69471, Dec. 30, 1993; T.D. 94-4, 59 FR 140, Jan. 3,<br />

1994; T.D. 96-48, 61 FR 28980, June 6, 1996]<br />

§ 134.33 J-List exceptions.<br />

11<br />

Attachment #1<br />

(May 1985)


Title 19-<strong>Customs</strong> Duties<br />

Articles of a class or kind listed below are excepted from the requirements of country of origin marking in<br />

accordance with the provisions of section 304(a)(3)(J), Tariff Act of 1930, as amended (19 U.S.C. 1304(a)(3)(J)).<br />

However, in the case of any article described in this list which is imported in a container, the outermost container<br />

in which the article ordinarily reaches the ultimate purchaser is required to be marked to indicate the origin of its<br />

contents in accordance with the requirements of subpart C of this part. All articles are listed in Treasury Decisions<br />

49690, 49835, and 49896. A reference different from the foregoing indicates an amendment.<br />

**TABLE**<br />

______________________________________________________________________________<br />

______________________________________________________________________________<br />

Articles References<br />

______________________________________________________________________________<br />

Art, works of.<br />

Articles classified under subheadings T.D. 66 - 153.<br />

9810.00.15, 9810.00.25, 9810.00.40<br />

and 9810.00.45, Harmonized Tariff<br />

Schedule of the United States.<br />

Articles entered in good faith as<br />

antiques and rejected as unauthentic.<br />

Bagging, waste.<br />

Bags, jute.<br />

Bands, steel.<br />

Beads, unstrung.<br />

Bearings, ball, \5/8\ - inch or less<br />

in diameter.<br />

Blanks, metal, to be plated.<br />

Bodies, harvest hat.<br />

Bolts, nuts, and washers.<br />

Briarwood in blocks.<br />

Briquettes, coal or coke.<br />

Buckles, 1 inch or less in greatest<br />

dimension.<br />

Burlap.<br />

Buttons.<br />

Cards, playing.<br />

Cellophane and celluloid in sheets,<br />

bands, or strips.<br />

Chemicals, drugs, medicinal, and<br />

similar substances, when imported in<br />

capsules, pills, tablets, lozenges,<br />

or troches.<br />

Cigars and cigarettes.<br />

12 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

Covers, straw bottle.<br />

Dies, diamond wire, unmounted.<br />

Dowels, wooden.<br />

Effects, theatrical.<br />

Eggs.<br />

Feathers.<br />

Firewood.<br />

Flooring, not further manufactured T.D.s 49750; 50366(6).<br />

than planed, tongued and grooved.<br />

Flowers, artificial, except bunches.<br />

Flowers, cut.<br />

Glass, cut to shape and size for use<br />

in clocks, hand, pocket, and purse<br />

mirrors, and other glass of similar<br />

shapes and sizes, not including<br />

lenses or watch crystals.<br />

Glides, furniture, except glides with<br />

prongs.<br />

Hairnets.<br />

Hides, raw.<br />

Hooks, fish (except snelled fish T.D. 50205(3).<br />

hooks).<br />

Hoops (wood), barrel.<br />

Laths.<br />

Leather, except finished.<br />

Livestock.<br />

Lumber, sawed......................... T.D.s 49750; 50366(6).<br />

Metal bars, except concrete<br />

reinforcement bars; billets, blocks,<br />

blooms; ingots; pigs; plates; sheets,<br />

except galvanized sheets; shafting;<br />

slabs; and metal in similar forms.<br />

Mica not further manufactured than cut<br />

or stamped to dimensions, shape or<br />

form.<br />

Monuments.<br />

Nails, spikes, and staples.<br />

Natural products, such as vegetables,<br />

fruits, nuts, berries, and live or<br />

dead animals, fish and birds; all the<br />

foregoing which are in their natural<br />

state or not advanced in any manner<br />

further than is necessary for their<br />

safe transportation.<br />

Nets, bottle, wire.<br />

Paper, newsprint.<br />

13<br />

Attachment #1<br />

(May 1985)


Paper, stencil.<br />

Paper, stock.<br />

Parchment and vellum.<br />

Parts for machines imported from same<br />

country as parts.<br />

Pickets (wood).<br />

Pins, tuning.<br />

Plants, shrubs and other nursery<br />

stock.<br />

Plugs, tie.<br />

Poles, bamboo.<br />

Posts (wood), fence.<br />

Pulpwood.<br />

Rags (including wiping rags)<br />

Rails, joint bars, and tie plates<br />

covered by subheadings 7302.10.10<br />

through 7302.90.00, Harmonized Tariff<br />

Schedule of the United States.<br />

Ribbon.<br />

Rivets.<br />

Rope, including wire rope; cordage;<br />

cords; twines, threads, and yarns.<br />

Scrap and waste.<br />

Screws.<br />

Shims, track.<br />

Shingles (wood), bundles of (except T.D. 49750.<br />

bundles of red-cedar shingles).<br />

Skins, fur, dressed or dyed.<br />

Skins, raw fur.<br />

Sponges.<br />

Springs, watch.<br />

Stamps, postage and revenue, and other T.D. 66 - 153.<br />

articles covered in subheadings<br />

9704.00.00 and 4807.00.00, Harmonized<br />

Tariff Schedule of the United States.<br />

Staves (wood), barrel.<br />

Steel, hoop.<br />

Sugar, maple.<br />

Ties (wood), railroad.<br />

Tides, not over 1 inch in greatest<br />

dimension.<br />

Timbers, sawed.<br />

Tips, penholder.<br />

Trees, Christmas.<br />

Weights, analytical and precision in T.D.s 49750; 51802.<br />

sets<br />

Wicking, candle.<br />

Wire, except barbed.<br />

______________________________________________________________________________<br />

Title 19-<strong>Customs</strong> Duties<br />

14 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

00039<br />

[T.D. 72-262, 35 FR 20318, Sept. 29, 1972, as amended by T.D. 85-123, 50 FR 29954, July 23, 1985;<br />

T.D. 89-1, 53 FR 51256, Dec. 21, 1988; T.D. 95-79, 60 FR, 49752, Sept. 27, 1995]<br />

§ 134.34 Certain repacked articles.<br />

(a) Exception for repacked articles. An exception under §134.32(d) may be authorized in the discretion of the<br />

port director for imported articles which are to be repacked after release from <strong>Customs</strong> custody under the<br />

following conditions:<br />

(1) The containers in which the articles are repacked will indicate the origin of the articles to an ultimate<br />

purchaser in the United States.<br />

(2) The importer arranges for supervision of the marking of the containers by <strong>Customs</strong> officers at the<br />

importer's expense or secures such verification, as may be necessary, by certification and the submission of a<br />

sample or otherwise, of the marking prior to the liquidation of the entry.<br />

(b) Liquidation of entries. The liquidation of such entries may be deferred for a period of not more than 60<br />

days from the date that a request for repacking is granted. Extensions of the 60-day deferral period may be<br />

granted by the port director in his discretion upon written application by the importer.<br />

[T.D. 84-127, 49 FR 22795, June 1, 1984]<br />

§ 134.35 Articles substantially changed by manufacture.<br />

(a) Articles other than goods of a NAFTA country. An article used in the United States in manufacture which<br />

results in an article having a name, character, or use differing from that of the imported article, will be within<br />

the principle of the decision in the case of United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267<br />

(C.A.D. 98). Under this principle, the manufacturer or processor in the United States who converts or<br />

combines the imported article into the different article will be considered the ``ultimate purchaser'' of the<br />

imported article within the contemplation of section 304(a), Tariff Act of 1930, as amended (19 U.S.C.<br />

1304(a)), and the article shall be excepted from marking. The outermost containers of the imported articles<br />

shall be marked in accord with this part.<br />

(b) Goods of a NAFTA country. A good of a NAFTA country which is to be processed in the United States in<br />

a manner that would result in the good becoming a good of the United States under the NAFTA Marking<br />

Rules is excepted from marking. Unless the good is processed by the importer or on its behalf, the outermost<br />

container of the good shall be marked in accord with this part.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94-1, 58 FR 69472, Dec. 30, 1993]<br />

§ 134.36 Inapplicability of exceptions.<br />

15<br />

Attachment #1<br />

(May 1985)


Title 19-<strong>Customs</strong> Duties<br />

(a) Processed articles capable of marking. An article which is to be processed in the United States by the<br />

importer or for his account shall not be considered to be within the specifications of section 304(a)(3)(G), of<br />

the Tariff Act of 1930, as amended (19 U.S.C. 1304(a)(3)(G)), if there is a reasonable method of marking<br />

which will not be obliterated, destroyed, or permanently concealed by such processing.<br />

(b) Articles or container bearing misleading markings. An exception from marking shall not apply to any<br />

article or retail container bearing any words, letters, names, or symbols described in §134.46 or §134.47<br />

which imply that an article was made or produced in a country other than the actual country of origin.<br />

Subpart E-Method and Location of Marking Imported Articles<br />

§ 134.41 Methods and manner of marking.<br />

(a) Suggested methods of marking. Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304),<br />

requires that the marking of the country of origin be legible, indelible, and permanent. Definite methods of<br />

marking are prescribed only for articles provided for in §134.43 and for articles which are the objects of<br />

special rulings by the Commissioner of <strong>Customs</strong>. As a general rule, marking requirements are best met by<br />

marking worked into the article at the time of manufacture. For example, it is suggested that the country of<br />

origin on metal articles be die sunk, molded in or etched; on earthenware or chinaware be glazed on in the<br />

process of firing; and on paper articles be imprinted.<br />

(b) Degree of permanence and visibility. The degree of permanence should be at least sufficient to insure that<br />

in any reasonably foreseeable circumstance, the marking shall remain on the article (or its container) until it<br />

reaches the ultimate purchaser unless it is deliberately removed. The marking must survive normal distribution<br />

and store handling. The ultimate purchaser in the United States must be able to find the marking easily and<br />

read it without strain.<br />

§ 134.42 Specific method may be required.<br />

Marking merchandise by specific methods, such as die stamping, cast-in-the-mold lettering, etching, or<br />

engraving, or cloth labels may be required by the Commissioner of <strong>Customs</strong> in accordance with section<br />

304(a), Tariff Act of 1930, as amended (19 U.S.C. 1304(a)). Notices of such rulings shall be published in the<br />

Federal Register and the <strong>Customs</strong> Bulletin.<br />

§ 134.43 Methods of marking specific articles.<br />

(a) Marking previously required by certain provisions of the Tariff Act of 1930. Except for goods of a<br />

NAFTA country, articles of a class or kind listed below shall be marked legibly and conspicuously by die<br />

stamping, cast-in-the-mold lettering, etching (acid or electrolytic), engraving, or by means of metal plates<br />

which bear the prescribed marking and which are securely attached to the article in a conspicuous place by<br />

welding, screws, or rivets: knives, forks, steels, cleavers, clippers, shears, scissors, safety razors, blades for<br />

safety razors, surgical instruments, dental instruments, scientific and laboratory instruments, pliers, pincers,<br />

nippers and hinged hand tools for holding and splicing wire, vacuum containers, and parts of the above<br />

16 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

articles. Goods of a NAFTA country shall be marked by any reasonable method which is legible, conspicuous<br />

and permanent as otherwise provided in this part.<br />

(b) Watch, clock, and timing apparatus. The country of origin marking requirements on watches, clocks, and<br />

timing apparatus are intensive and require special methods. (See §11.9 of this chapter and Chapter 91,<br />

Additional U.S. Note 4, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202)).<br />

(c) Native American-style jewelry-(1) Definition. For the purpose of this provision, Native American-style<br />

jewelry is jewelry which incorporates traditional Native American design motifs, materials and/or construction<br />

and therefore looks like, and could possibly be mistaken for, jewelry made by Native Americans.<br />

(2) Method of marking. Except as provided in 19 U.S.C. 1304(a)(3) and in paragraph (c)(3) of this section,<br />

Native American-style jewelry must be indelibly marked with the country of origin by cutting, die-sinking,<br />

engraving, stamping, or some other permanent method. The indelible marking must appear legibly on the clasp<br />

or in some other conspicuous location, or alternatively, on a metal or plastic tag indelibly marked with the<br />

country of origin and permanently attached to the article.<br />

(3) Exception. If it is technically or commercially infeasible to mark in the manner specified in paragraph<br />

(c)(2) of this section, or in the case of a good of a NAFTA country, the article may be marked by means of a<br />

string tag or adhesive label securely affixed, or some other similar method.<br />

(d) Native American-style arts and crafts-(1) Definition. For the purpose of this provision, Native American-style<br />

arts and crafts are arts and crafts, such as pottery, rugs, kachina dolls, baskets and beadwork, which<br />

incorporate traditional Native American design motifs, materials and/or construction and therefore look like,<br />

and could possibly be mistaken for, arts and crafts made by Native Americans.<br />

(2) Method of Marking. Except as provided for in 19 U.S.C. 1304(a)(3) and §134.32 of this part, Native<br />

American-style arts and crafts must be indelibly marked with the country of origin by means of cutting,<br />

die-sinking, engraving, stamping, or some other equally permanent method. On textile articles, such as rugs, a<br />

sewn in label is considered to be an equally permanent method.<br />

(3) Exception. Where it is technically or commercially infeasible to mark in the manner specified in paragraph<br />

(d)(2) of this section, or in the case of a good of a NAFTA country, the article may be marked by means of a<br />

string tag or adhesive label securely affixed, or some other similar method.<br />

(e) Assembled articles. Where an article is produced as a result of an assembly operation and the country of<br />

origin of such article is determined under this chapter to be the country in which the article was finally<br />

assembled, such article may be marked, as appropriate, in a manner such as the following:<br />

(1) Assembled in (country of final assembly);<br />

(2) Assembled in (country of final assembly) from components of (name of country or countries of origin of all<br />

components); or<br />

(3) Made in, or product of, (country of final assembly).<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 89-1, 53 FR 51255, Dec. 21, 1988; T.D.<br />

89-88, 54 FR 39524, Sept. 27, 1989; T.D. 90-75, 55 FR 38317, Sept. 18, 1990; T.D. 90-78, 55 FR 40166,<br />

17<br />

Attachment #1<br />

(May 1985)


Title 19-<strong>Customs</strong> Duties<br />

Oct. 2, 1990; T.D. 94-1, 58 FR 69472, Dec. 30, 1993; T.D. 94-4, 59 FR 140, Jan. 3, 1994; T.D. 96-48, 61<br />

FR 28980, June 6, 1996]<br />

§ 134.44 Location and other acceptable methods of marking.<br />

(a) Other acceptable methods. Except for articles described in §134.43 of this part or the subject of a ruling by<br />

the Commissioner of <strong>Customs</strong>, any method of marking at any location insuring that country of origin will<br />

conspicuously appear on the article shall be acceptable. Such marking must be legible and sufficiently<br />

permanent so that it will remain on the article (or its container when the container and not the article is<br />

required to be marked) until it reaches the ultimate purchaser unless deliberately removed.<br />

(b) Articles marked with paper sticker labels. If paper sticker or pressure sensitive labels are used, they must<br />

be affixed in a conspicuous place and so securely that unless deliberately removed they will remain on the<br />

article while it is in storage or on display and until it is delivered to the ultimate purchaser.<br />

(c) Articles marked with tags. When tags are used, they must be attached in a conspicuous place and in a<br />

manner which assures that unless deliberately removed they will remain on the article until it reaches the<br />

ultimate purchaser.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94-1, 58 FR 69472, Dec. 30, 1993]<br />

§ 134.45 Approved markings of country name.<br />

(a) Language. (1) Except as otherwise provided in paragraph (a)(2) of this section, the markings required by<br />

this part shall include the full English name of the country of origin, unless another marking to indicate the<br />

English name of the country of origin is specifically authorized by the Commissioner of <strong>Customs</strong>. Notice of<br />

acceptable markings other than the full English name of the country of origin shall be published in the Federal<br />

Register and the <strong>Customs</strong> Bulletin.<br />

(2) A good of a NAFTA country may be marked with the name of the country of origin in English, French or<br />

Spanish.<br />

(b) Abbreviations and variant spellings. Abbreviations which unmistakably indicate the name of a country,<br />

such as ``Gt. Britain'' for ``Great Britain'' or ``Luxemb'' and ``Luxembg'' for ``Luxembourg'' are acceptable.<br />

Variant spellings which clearly indicate the English name of the country of origin, such as ``Brasil'' for<br />

``Brazil'' and ``Italie'' for ``Italy,'' are acceptable.<br />

(c) Adjectival form. The adjectival form of the name of a country shall be accepted as a proper indication of<br />

the name of the country of origin of imported merchandise provided the adjectival form of the name does not<br />

appear with other words so as to refer to a kind or species of product. For example, such terms as ``English<br />

walnuts'' or ``Brazil nuts'' are unacceptable.<br />

(d) Colonies, possessions, or protectorates. The name of a colony, possession, or protectorate outside the<br />

boundaries of the mother country shall usually be considered acceptable marking. When the Commissioner of<br />

<strong>Customs</strong> finds that the name is not sufficiently well known to insure that the ultimate purchasers will be fully<br />

informed of the country of origin, or where the name appearing alone may cause confusion, deception, or<br />

18 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

mistake, clarifying words shall be required. In such cases, the Commissioner of <strong>Customs</strong> shall specify in<br />

decisions published in the Federal Register and the <strong>Customs</strong> Bulletin the additional wording to be used in<br />

conjunction with the name of the colony, possession, or protectorate.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94-1, 58 FR 69472, Dec. 30, 1993]<br />

§ 134.46 Marking when name of country or locality other than country of origin appears.<br />

In any case in which the words ``United States,'' or ``American,'' the letters ``U.S.A.,'' any variation of such<br />

words or letters, or the name of any city or locality in the United States, or the name of any foreign country or<br />

locality other than the country or locality in which the article was manufactured or produced, appear on an<br />

imported article or its container, there shall appear, legibly and permanently, in close proximity to such words,<br />

letters or name, and in at least a comparable size, the name of the country of origin preceded by ``Made in,''<br />

``Product of,'' or other words of similar meaning.<br />

§ 134.47 Souvenirs and articles marked with trademarks or trade names.<br />

When as part of a trademark or trade name or as part of a souvenir marking, the name of a location in the<br />

United States or ``United States'' or ``America'' appear, the article shall be legibly, conspicuously, and<br />

permanently marked to indicate the name of the country of origin of the article preceded by ``Made in,''<br />

``Product of,'' or other similar words, in close proximity or in some other conspicuous location.<br />

Subpart F-Articles Found Not Legally Marked<br />

§ 134.51 Procedure when importation found not legally marked.<br />

(a) Notice to mark or redeliver. When articles or containers are found upon examination not to be legally<br />

marked, the port director shall notify the importer on <strong>Customs</strong> Form 4647 to arrange with the port director's<br />

office to properly mark the article or containers, or to return all released articles to <strong>Customs</strong> custody for<br />

marking, exportation, or destruction.<br />

(b) Identification of articles. When an imported article which is not legally marked is to be exported, destroyed,<br />

or marked under <strong>Customs</strong> supervision, the identity of the imported article shall be established to the satisfaction<br />

of the port director.<br />

(c) Supervision. Verification of marking, exportation, or destruction of articles found not to be legally marked<br />

shall be at the expense of the importer and shall be performed under <strong>Customs</strong> supervision unless the port<br />

director accepts a certificate of marking as provided for in §134.52 in lieu of marking under <strong>Customs</strong><br />

supervision.<br />

§ 134.52 Certificate of marking.<br />

(a) Applicability. Port directors may accept certificates of marking supported by samples of articles required<br />

to be marked, for which <strong>Customs</strong> Form 4647 was issued, from importers or from actual owners complying<br />

19<br />

Attachment #1<br />

(May 1985)


Title 19-<strong>Customs</strong> Duties<br />

with the provision of §141.20 of this chapter, to certify that marking of the country of origin on imported<br />

articles as required by this part has been accomplished.<br />

(b) Filing of certificates of marking. The certificates of marking shall be filed in duplicate with the port<br />

director, and a sample of the marked merchandise shall accompany the certificate. The port director may waive<br />

the production of the marked sample when he is satisfied that the submission of such sample is impracticable.<br />

(c) Notice of acceptance. The port director shall notify the importer or actual owner when the certificate of<br />

marking is accepted. Such notice of acceptance may be granted on the duplicate copy of the certificate of<br />

marking by use of a stamped notation of acceptance. The port director is authorized to spot check the marking<br />

of articles on which a certificate has been filed. If a spot check is performed, the approved copy of the<br />

certificate, if approval is granted, shall be returned to the importer or actual owner after the spot check is<br />

completed.<br />

(d) Filing of false certificate of marking. If a false certificate of marking is filed with the port director<br />

indicating that goods have been properly marked when in fact they have not been so marked, a seizure shall be<br />

made or claim for monetary penalty reported under section 592, Tariff Act of 1930, as amended (19 U.S.C.<br />

1592). In addition, in cases involving, willful deceit, a criminal case report may be made charging a violation<br />

of section 1001, title 18, United States Code, which provides for a fine up to $10,000 and/or imprisonment up<br />

to 5 years for anyone who willfully conceals a material fact or uses any document knowing the same to contain<br />

any false or fraudulent statement in connection with any matter within the jurisdiction of an agency of the<br />

United States.<br />

(e) Authority to require physical supervision when deemed necessary. The port director may require physical<br />

supervision of marking as specified in §134.51(c) in those cases in which he determines that such action is<br />

necessary to insure compliance with this part. In such cases the expenses of the <strong>Customs</strong> officer shall be<br />

reimbursed to the Government as provided for in §134.55.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 73-175, 38 FR 17447, July 2, 1973; T.D.<br />

84-18, 49 FR 1678, Jan. 13, 1984]<br />

§ 134.53 Examination packages.<br />

(a) Site of marking-(1) <strong>Customs</strong> custody. Articles (or containers) in examination packages may be marked by<br />

the importer at the place where they have been discharged from the importing or bonded carrier or in the public<br />

stores.<br />

(2) Importer's premises or elsewhere. If it is impracticable to mark the articles (or containers) in examination<br />

packages as provided in paragraph (a)(1) of this section, the merchandise may be turned over to the importer<br />

after the amount of duty, estimated to be payable under 19 U.S.C. 1304(f) has been deposited to insure<br />

compliance with the marking requirements and the payment of any additional expense which will be incurred<br />

on account of <strong>Customs</strong> supervision. (See §134.55.) The port director may at his discretion accept the bond on<br />

<strong>Customs</strong> Form 301, containing the basic importation and entry bond conditions set forth in §113.62 of this<br />

chapter as security for the requirements of 19 U.S.C. 1304 (f) and (g).<br />

(b) Failure to export, destroy, or properly mark merchandise in examination packages. If the articles (or<br />

containers) in examination packages are not exported, destroyed, or properly marked by the importer within a<br />

reasonable time (not more than 30 days), they shall be sent to general-order stores for disposition in accor-<br />

20 (May 1985)


Chapter 1-United States <strong>Customs</strong> Service<br />

dance with part 127 of this chapter, unless covered by a warehouse entry. If covered by a warehouse entry,<br />

they shall be sent to the warehouse containing the rest of the shipment for marking prior to withdrawal.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 78-99, 43 FR 13061, Mar. 29, 1978;<br />

T.D. 84-213, 49 FR 41183, Oct. 19, 1984; T.D. 90-51, 55 FR 28191, July 10, 1990]<br />

§ 134.54 Articles released from <strong>Customs</strong> custody.<br />

(a) Demand for liquidated damages. If within 30 days from the date of the notice of redelivery, or such<br />

additional period as the port director may allow for good cause shown, the importer does not properly mark or<br />

redeliver all merchandise previously released to him, the port director shall demand payment of liquidated<br />

damages incurred under the bond in an amount equal to the entered value of the articles not properly marked or<br />

redelivered, plus any estimated duty thereon as determined at the time of entry.<br />

(b) Failure to petition for relief. A written petition addressed to the Commissioner of <strong>Customs</strong> for relief from<br />

the payment of liquidated damages may be filed with the Fines, Penalties, and Forfeiture Officer in accord with<br />

part 172 of this chapter. If a petition for relief from the payment of liquidated damages is not filed or payment<br />

of the liquidated damages is not made within a period of 60 days after the demand for payment, or if the<br />

liquidated damages are not paid within 60 days after the denial of the petition for relief, the Fines, Penalties,<br />

and Forfeiture Officer shall in accord with part 172 of this chapter report the matter to the U.S. attorney for<br />

collection.<br />

(c) Relief from full liquidated damages. Any relief from the payment of the full liquidated damages incurred<br />

will be contingent upon the deposit of the marking duty required by 19 U.S.C. 1304(f), and the satisfaction of<br />

the Fines, Penalties, and Forfeiture Officer that the importer was not guilty of bad faith in permitting the<br />

illegally marked articles to be distributed, has been diligent in attempting to secure compliance with the<br />

marking requirements, and has attempted by all reasonable means to effect redelivery of the merchandise.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 79-159, 44 FR 31969, June 4, 1979; T.D.<br />

83-217, 48 FR 48659, Oct. 20, 1983; T.D. 90-51, 55 FR 28191, July 10, 1990]<br />

§ 134.55 Compensation of <strong>Customs</strong> officers and employees.<br />

(a) Time for which compensation is charged. The time for which compensation is charged shall include all<br />

periods devoted to supervision and all periods during which <strong>Customs</strong> officers or employees are away from<br />

their regular posts of duty by reason of such assignment and for which compensation to such officers and<br />

employees is provided for by law.<br />

(b) Applicability-(1) Official hours. The compensation of <strong>Customs</strong> Officers or employees assigned to<br />

supervise the exportation, destruction, or marking of articles so as to exempt them from the application of<br />

marking duties shall be computed in accordance with the provisions of §§24.16 or 24.17(a)(3), respectively, of<br />

this chapter when such supervision is performed during a regularly-scheduled tour of duty.<br />

(2) Overtime. When such supervision is performed by a <strong>Customs</strong> Officer or employee in an overtime status,<br />

the compensation with respect to the overtime shall be computed in accordance with the provisions of §24.16<br />

or §24.17, respectively, of this chapter.<br />

21<br />

Attachment #1<br />

(May 1985)


Title 19-<strong>Customs</strong> Duties<br />

(c) Expenses included. In formulating charges for expenses pertaining to supervision of exportation,<br />

destruction, or marking, there shall be included all expenses of transportation, per diem allowance in lieu of<br />

subsistence, and all other expenses incurred by reason of such supervision from the time the <strong>Customs</strong> officer<br />

leaves his official station until he returns thereto.<br />

(d) Services rendered for more than one importer. If the importations of more than one importer are concurrently<br />

supervised, the service rendered for each importer shall be regarded as a separate assignment, but the<br />

total amount of the compensation, and any expenses properly applicable to more than one importer, shall be<br />

equitably apportioned among the importers concerned.<br />

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94-74, 59 FR 46757, Sept. 12, 1994]<br />

22 (May 1985)


HQ 731472 JUN 23 1988<br />

MAR 2-05 CO:R:C:V 731472 LR<br />

CATEGORY: Marking<br />

Mr. William D. Chauvin<br />

Executive Director<br />

American Shrimp Processors Association<br />

P.O. Box 50774<br />

New Orleans, Louisiana 70150<br />

ATTACHMENT #2<br />

Re: Country of Origin Marking Requirements for Shrimp Processed in the U.S. by Shelling and<br />

Deveining<br />

Dear Mr. Chauvin:<br />

This ruling is in further response to our letter dated May 16, 1988, stating our position that the<br />

peeling of imported shrimp does not constitute a substantial transformation. We advised you that a<br />

ruling would follow.<br />

BACKGROUND:<br />

On April 13, 1988, the <strong>Customs</strong> Service seized certain foreign shrimp that had been repacked<br />

into boxes that labeled the shrimp as a product of the U.S. In some cases, the shrimp was merely<br />

repacked from one box to another. In other cases, the shrimp was also deveined and peeled. Though<br />

never the subject of a formal ruling, <strong>Customs</strong> specifically advised numerous processors who are<br />

members of your association, as well as the National Marine Fisheries Service (NMFS) as early as<br />

1984, that containers of imported shrimp must be marked to indicate the foreign country of origin of<br />

the shrimp. Although the position of the <strong>Customs</strong> Service has remained constant, i.e. that the mere<br />

repacking or repacking along with deveining and/or peeling is not a substantial transformation and<br />

that country of origin marking is required, it has come to our attention that the NMFS advised<br />

shrimp repackers that such labeling was not required. The purpose of this ruling is to clarify any misunderstandings<br />

that may have resulted. While your letter addresses only shelling, the letter from the<br />

NMFS addresses both shelling and deveining. Our ruling, which covers both shelling and deveining,<br />

will be published in the <strong>Customs</strong> Bulletin, a publication that is widely disseminated to members of the<br />

importing community.


FACTS:<br />

-2-<br />

The imported product is green headless frozen shrimp (i.e., shrimp which has been headed).<br />

After importation, the shrimp is thawed, sorted, iced, peeled, deveined, iced and packaged. The<br />

peeling and deveining (removal of the intestinal tract) is done either by automated or semi-automated<br />

machinery. The domestic processing results in some weight loss which increases the remaining per<br />

pound product cost. (For example, we are told that a processor normally yields 80 percent of the<br />

original weight after peeling 70-90 count size Chinese white shell-on shrimp. By virtue of the weight<br />

loss alone, this increases the price per pound from $2.00 to $2.50. After adding the cost of processing<br />

and profit, the product is sold for $3.10). Although not specifically stated, it would appear<br />

that the removal of the shell from larger imported shrimp would result in a greater percentage yield<br />

of the original weight and would result in a smaller percentage increase in price.<br />

ISSUE:<br />

Whether containers of imported shrimp must be marked to indicate the country of origin after<br />

the shrimp has been deveined and peeled in the U.S.<br />

LAW AND ANALYSIS:<br />

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), requires that, unless<br />

excepted, every article of foreign origin or its container must be legibly, permanently, and conspicuously<br />

marked to indicate the country of origin to an ultimate purchaser in the United States. The<br />

primary purpose of the country of origin marking statute is to mark the goods so that at the time of<br />

purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or<br />

refuse to buy them, if such marking should influence his will. United States v. Friedlaender & Co, 27<br />

C.C.P.A. 297, 302, C.A.D. 104 (1940) (quoted in Globemaster, Inc. v. United States, 68 Cust. Ct.<br />

77, 79-80, 340 F. Supp. 975-76 (1972) and National Juice Products Association v. United States, 10<br />

CIT 628 F. Supp. 978 (1986) .<br />

The regulations implementing the statute are set forth in Part 134, <strong>Customs</strong> Regulations (19<br />

CFR Part 134). Under 19 CFR 134.1(d), the ultimate purchaser is generally the last person in the<br />

U.S. who will receive the article in the form in which it was imported. If an imported article is further<br />

manufactured in the U.S. and the manufacturing process is merely a minor one which leaves the<br />

identity of the imported article intact, pursuant to 19 CFR 134.1(d)(2), the consumer or user of the<br />

article who obtains the article after the processing, will be regarded as the ultimate purchaser.<br />

Foreign natural products (such as shrimp) are on the so-called J-list and are excepted from<br />

individual marking requirements (19 U.S.C. 1304(a)(3)(J) and 19 CFR 134.33). However, the<br />

outermost container in which the article ordinarily reaches the ultimate<br />

purchaser is required to be marked to indicate the origin of its contents. As provided in 19 CFR<br />

134.25, if the imported J-list<br />

-3


product will be repacked prior to sale to the ultimate purchaser, the importer must certify to<br />

<strong>Customs</strong> that he will properly mark the new package or alternatively notify the repacker of the<br />

obligation to mark the new package. The certification procedures, which are for the purpose of<br />

ensuring that despite the repacking, the ultimate purchaser will be advised of the country of origin,<br />

apply to imported J-list articles processed and repacked after importation unless the articles are substantially<br />

transformed prior to repacking. Absent a substantial transformation, the consumer or other<br />

recipient of the shrimp is considered the ultimate purchaser and is entitled to be informed of the<br />

country of origin of the shrimp.<br />

In order for a substantial transformation to be found, an article having a new name, character<br />

and use must emerge from the processing. See United States v. Gibson-Thomsen Co, Inc, 27<br />

C.C.P.A. 267, C.A.D. 98 (1940). The issue before the <strong>Customs</strong> Court in that case was whether<br />

hairbrushes and toothbrushes manufactured in the U.S. by inserting bristles into wooden handles<br />

imported from Japan were required to be marked as products of Japan. After careful examination of<br />

the statute and its legislative history, the court concluded that Congress had not intended the marking<br />

requirements to continue to apply to an imported article which is used in the U.S. as a material in the<br />

manufacture of a new article having a new name, character and use, and which consequently loses its<br />

separate identity in the finished product.<br />

This decision was followed and quoted extensively in Grafton Spools, Ltd. v. United States, 45<br />

Cust. Ct. 16, 22, C.D. 2190 (1960), in which empty metal spools imported from England and<br />

wrapped in the U.S. with inked ribbons to create typewriter ribbons and business machine ribbons<br />

were found to have lost their identity in the finished product. The court observed that what the<br />

ribbon manufacturers were selling were ribbons, which of course had to be wound on a spool, but it<br />

was the ribbon and not the spool which the manufacturer's customers were interested in purchasing.<br />

A more recent court decision on the issue of country of origin marking is Uniroyal Inc. v.<br />

United States, 3 C.I.T. 220, 542 F. Supp. 1026 (1982), aff'd, 702 F.2d 1022 (Fed Cir. 1983). In this<br />

case the merchandise before the Court of International Trade consisted of "footwear uppers<br />

consisting of complete shoes except for an outsole ....," manufactured in Indonesia and imported into<br />

the U.S. where a preshaped rubber outsole was affixed and the complete shoe was sold to retailers.<br />

The question was whether the addition of the outsoles substantially transformed the uppers so that<br />

the uppers did not have to be individually marked as a product of Indonesia.<br />

After carefully examining both the imported upper and the finished shoe, the court concluded<br />

that the imported upper did not lose its distinct identity in the finished shoe and to the contrary, was<br />

the very essence of the completed shoe. This was so even though the imported upper could not be<br />

sold to or worn by consumers without the heavy rubber outsole being attached and even though<br />

following attachment of the rubber outsole the shoe was called by a different name, a deck shoe,<br />

rather than an upper or a moccasin.<br />

-4-<br />

In the most recent court decision involving a country of origin marking question, National<br />

Juice Products Association v. United States, supra, the Court of International Trade upheld <strong>Customs</strong><br />

determination that imported orange juice concentrate is not substantially transformed when it is


domestically processed into retail orange juice products. In that case, the orange concentrate was<br />

mixed with water, orange essences, orange oil and in some cases, fresh juice and either packaged in<br />

cans and frozen or pasteurized, chilled and packed in liquid form.<br />

<strong>Customs</strong> found, and the court agreed, that the domestic processing did not produce an article with a<br />

new name, character or use because the essential character of the final product was imparted by the<br />

imported concentrate and not the domestic processing. The court stated "the retail product in this<br />

case is essentially the juice concentrate derived in substantial part from foreign grown, harvested and<br />

processed oranges. The addition of water, orange essences and oils to the concentrate, while making<br />

it suitable for retail sale does not change the fundamental character of the product, it is still essentially<br />

the product of the juice or oranges."<br />

The court found that since the U.S. processing did not constitute a substantial transformation,<br />

the retail packages of juice had to be marked to indicate the country of origin of the imported<br />

concentrate. See also HQ 729365, dated June 25, 1986 (imported broccoli is not substantially transformed<br />

when it is processed in the U.S. by cutting, blanching, packaging and freezing; the imported<br />

broccoli does not lose its fundamental character and identity and the repacked broccoli is subject to<br />

the requirements of 19 U.S.C. 1304).<br />

Applying the principles set forth in the above precedents to the facts in this case, we are of the<br />

opinion that the shelling and deveining of foreign shrimp does not constitute a substantial transformation.<br />

First, the processing does not result in a change of name that is material. While the imported<br />

product may be known simply as frozen shrimp whereas the processed product may described as<br />

"peeled and deveined" frozen shrimp, both products have essentially the same name - frozen shrimp.<br />

Such a minor name change is not enough to warrant a finding of substantial transformation.<br />

More importantly, the character of the imported product is not changed by peeling and<br />

deveining. Both before and after peeling and deveining, the product is still basically the same, i.e.,<br />

raw frozen shrimp. The quality and size of the product is attributable to the imported product and<br />

not the domestic processing. While the peeling and deveining changes the physical appearance of the<br />

shrimp to a certain degree and renders the product ready for eating, in our opinion, the change is<br />

minor and does not fundamentally change the character of the imported product. Just as the imported<br />

orange juice concentrate in National Juice, the imported raw broccoli in HQ 729365 and the<br />

imported upper in Uniroyal, imparted the essential character to the final product, we believe that in<br />

this case the imported shrimp similarly imparts the essential character to the final product.<br />

-5-<br />

Finally, the shelling and deveining operations do not significantly change the product's intended<br />

use, which we believe is dictated primarily by the very nature of the product itself (as raw shrimp)<br />

and by its size. These criteria are already determined at the time of importation. The purchaser of<br />

frozen raw shrimp has already decided that he would like to purchase raw shrimp, that the product<br />

will be frozen, and that the raw shrimp will be a particular size. Whether or not the purchaser would<br />

also like the added convenience of having it deveined and shelled at the time of purchase is but one


factor to consider. We note that peeling and deveining is often performed by many consumers in their<br />

own kitchens.<br />

We are not persuaded by the argument that the processing changes the use of the imported<br />

product since peeled shrimp cannot be utilized for any of the shell-on presentations, e.g., "boil and<br />

peel", and "tail-on cocktail" dishes. Although the peeling may limit some of the uses of the imported<br />

product, this limitation does not equate with substantial transformation. In each of the cases cited<br />

above, where the U.S. processing did not effect a substantial transformation, the processed product<br />

could no longer be used for certain presentations. For example, after water was added to the orange<br />

juice concentrate it could no longer be sold as a frozen concentrated product; nonetheless, it is clear<br />

that the addition of water does not effect a substantial transformation. Similarly, after the imported<br />

broccoli was cut and frozen, it could no longer be used as broccoli spears. Nonetheless, it was held<br />

that both the imported and processed products had essentially the same use.<br />

Based on the above considerations, we find that the peeling and deveining of shrimp does not<br />

change the name, character or use of the imported product and thus, does not constitute a substantial<br />

transformation. To the contrary, the domestic manufacturing processing is merely a minor one which<br />

leaves the identity of the imported article intact. Therefore, the consumer or user of the shrimp who<br />

obtains it after the processing is regarded as the ultimate purchaser within the meaning of 19 U.S.C.<br />

1304 and 19 CFR 134.1(d). As such, the repacked shrimp must be labeled to reflect the country of<br />

origin of the shrimp. To say that a consumer is not entitled to know the origin of the shrimp by virtue<br />

of the peeling and deveining operations would, in our opinion, render the marking statute meaningless.<br />

HOLDING:<br />

Foreign shrimp which is processed in the U.S. by peeling, deveining and repacking is not<br />

substantially transformed. Therefore, the repacked shrimp is subject to the country of origin marking<br />

requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and the repacked product must be labeled to<br />

indicate the country of origin of the shrimp. In addition, the importer of such shrimp is subject to the<br />

certification requirements set forth in 19 CFR 134.25.<br />

Sincerely,<br />

John Durant, Director /s/Marvin M. Amernick/for<br />

Commercial Rulings Division


101.18 21 CFR Ch. 1 (4-1-85 Edition)<br />

ATTACHMENT #3<br />

§101.18 Misbranding of food.<br />

(a) Among representations in the labeling of a food which render such<br />

food misbranded is a false or misleading representation with respect to<br />

another food or a drug, device, or cosmetic.<br />

(b) The labeling of a food which contains two or more ingredients may be<br />

misleading by reason (among other reasons) of the designation of such food<br />

in such labeling by a name which includes or suggests the name of one or<br />

more but not all such ingredients, even though the names of all such<br />

ingredients are stated elsewhere in the labeling.<br />

(c) Among representations in the labeling of a food which render such<br />

food misbranded is any representation that expresses or implies a<br />

geographical origin of the food or any ingredient of the food except when<br />

such representation is either:<br />

(1) A truthful representation of geographical origin.<br />

(2) A trademark or trade name provided that as applied to the article in<br />

question its use is not deceptively misdescriptive. A trademark or trade<br />

name composed in whole or in part of geographical words shall not be considered<br />

deceptively misdescriptive if it:<br />

(i) Has been so long and exclusively used by a manufacturer or distributor<br />

that it is generally understood by the consumer to mean the product of<br />

a particular manufacturer or distributor, or<br />

(ii) Is so arbitrary or fanciful that it is not generally understood by<br />

the consumer to suggest geographic origin.<br />

(3) A part of the name required by applicable Federal law or regulation.<br />

(4) A name whose market significance is generally understood by the consumer<br />

to connote a particular class, kind, type, or style of food rather<br />

than to indicate geographical origin.<br />

ATTACHMENT #4


AUG 24 1988 F/TS4:RVC<br />

To: All Shrimp Processors and Users of Raw Peeled and Peeled<br />

and Deveined Shrimp<br />

Subject: <strong>Labeling</strong> Requirements for Raw Peeled and Peeled and<br />

Deveined Shrimp Processed from Imported Green Headless Shrimp<br />

Due to seizure actions which were taken recently by the U.S. <strong>Customs</strong><br />

Service against green headless shrimp, peeled, and peeled and deveined<br />

(P&D) product processed from imported shrimp, the U.S. <strong>Customs</strong> Service was<br />

asked to issue an official ruling regarding country-of-origin marking<br />

requirements for imported shrimp processed in the U.S. by shelling and<br />

deveining.<br />

In the ruling issued June 23, 1988, (copy enclosed) <strong>Customs</strong> stated that<br />

foreign shrimp which is processed in the U.S. by peeling or peeling and<br />

deveining and then re-packaged, is not "substantially transformed" and is<br />

therefore subject to the country of origin marking requirements of 19<br />

U.S.C. 1304 and 19 CFR Part 134. Under this law and regulation, repacked<br />

imported green headless, peeled and P&D product processed from imported<br />

green headless shrimp, must be labeled to indicate the country of origin<br />

of the shrimp. As such, the importer must comply with the certification<br />

requirements set forth in 19 CFR 134.25: i.e., the importer must certify<br />

at the time of entry that if the shrimp are repacked in new containers<br />

while still in his possession, the new containers shall be marked in a<br />

conspicuous place as legibly, indelibly, and permanently as the nature of<br />

the containers will permit, in such manner as to indicate the country of<br />

origin of the articles to the ultimate purchasers in accordance with the<br />

requirements of 19 U.S.C. 1304 and 19 CFR Part 134. The importer must<br />

further certify that if the shrimp are intended to be sold or transferred<br />

by him to a subsequent purchaser or repacker, he will notify such<br />

purchaser or transferee, in writing, at the time of sale or transfer of<br />

the above marking requirements.<br />

To comply with the marking requirements the container or package must bear<br />

the English name of the specific country (or countries) of origin so that<br />

the ultimate purchaser in the U.S. can find and read the marking easily.<br />

The marking must be legible, indelible, and of sufficient permanence to<br />

ensure that under reasonably foreseeable circumstances the marking will<br />

remain on the container/package through normal distribution and store<br />

handling, and reach the ultimate purchaser in a legible condition.<br />

These marking requirements may be satisfied through:<br />

1) the use of permanently printed labels bearing the specific country<br />

or countries of origin,<br />

2) the stamping of the country or countries of origin in a blank area<br />

of the permanent printed label, or


3) some other equally permanent method (for example, the use of a<br />

sticker identifying the country or countries of origin affixed to<br />

the printed label. If paper stickers or pressure sensitive labels<br />

are used, they must be affixed in a conspicuous place and so<br />

securely that unless deliberately removed they will remain on the<br />

article while it is in storage or on display and until it is<br />

delivered to the ultimate purchaser.)<br />

Section 134.22 of the <strong>Customs</strong> Regulations (19 CFR 134.22) requires that<br />

the outermost container or holder in which the article ordinarily reaches<br />

the ultimate purchaser shall be marked with the country of origin. In most<br />

cases, the ultimate purchaser of the imported shrimp is the American<br />

consumer and the individual bags in which the shrimp is sold must be<br />

marked with the country of origin of the shrimp. In some cases, it may be<br />

appropriate to mark the master cartons rather than the individual bags.<br />

For example, in cases where the shrimp is sold to an institution for its<br />

own use and not for further sale, the institution would be considered to<br />

be the ultimate purchaser. In such case, it would be acceptable to mark<br />

the master carton in which the shrimp is sold to the institution. However,<br />

since the acceptability of marking a container other than the individual<br />

bag of shrimp is very much dependent on the particular circumstances,<br />

<strong>Customs</strong> should be consulted before this exception is utilized.<br />

In the U.S., the Food and Drug Administration (FDA) has responsibility<br />

under the Food, Drug, and Cosmetic Act and the Fair Packaging and <strong>Labeling</strong><br />

Act to ensure that the labeling of food in interstate commerce is truthful,<br />

informative, and not deceptive. In a decision related to the <strong>Customs</strong><br />

issue, FDA has stated that peeled and P&D shrimp processed from imported<br />

green headless shrimp would be considered to be misbranded if its labeling<br />

represented the shrimp to be product of the U.S., or made other<br />

representations of geographical origin which could be considered<br />

misleading to the purchaser. The FDA would not object to the phrase "Processed<br />

in the USA" on the labels of food processed in the United States<br />

from a foreign raw material.<br />

As a means to accurately inform the purchaser of the background of the<br />

peeled or P&D shrimp product, it may be labeled as: "Product of (foreign<br />

country or countries) Processed in the U.S."<br />

The National Marine Fisheries Service (NMFS) conducts a voluntary<br />

inspection program for fishery products. Under this program, labeling<br />

requirements relative to the country of origin marking and representations<br />

of geographical origin are set by the responsible Federal regulatory agencies;<br />

in this case, <strong>Customs</strong> and FDA respectively. With the issuance of the<br />

<strong>Customs</strong> ruling on peeled and P&D shrimp, and the related decision by FDA,<br />

any label approvals previously issued by NMFS that are not in compliance<br />

with <strong>Customs</strong> or FDA requirements are rescinded. Even though peeling or<br />

peeling and deveining is not considered to be a substantial transformation<br />

under <strong>Customs</strong> law, it is considered processing sufficient to warrant<br />

continued inclusion in NMFS' voluntary inspection program for fisheries<br />

products.<br />

It should be noted that while the enclosed <strong>Customs</strong> ruling is effective<br />

immediately, the Secretary of Commerce is requesting that <strong>Customs</strong> provide<br />

a reasonable period of time based on information which is now under development<br />

by the industry, to comply with the labeling requirements for


peeled and P&D shrimp processed in the United States. When <strong>Customs</strong> advises<br />

us of its decision, we will notify you. Whatever the decision of <strong>Customs</strong>,<br />

we encourage the industry to comply with these requirements as soon as<br />

possible.<br />

Imported shrimp which has merely been repacked and is either not labeled<br />

with the original foreign country of origin, or is labeled as "Product of<br />

the U.S." is misbranded and will be afforded no grace period. Such product<br />

is subject to seizure by the U.S. <strong>Customs</strong> Service and the Food and Drug<br />

Administration.<br />

For additional information, please contact the appropriate Federal agency:<br />

Mr. Marvin M. Amernick<br />

Office of Regulations and Rulings<br />

U.S. <strong>Customs</strong> Service<br />

1301 Constitution Avenue, N.W.<br />

Washington, D.C. 20229<br />

Mr. L. Robert Lake<br />

Office of Compliance<br />

Center for Food Safety and Applied Nutrition<br />

Food and Drug Administration<br />

200 C Street, S.W.<br />

Washington, D.C. 20204<br />

Mr. Richard V. Cano<br />

<strong>Inspection</strong> Services Division<br />

National Marine Fisheries Service<br />

1335 East-West Highway<br />

Silver Spring, MD 20910

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