One of the most important Parts of the U.S. Customs Regulations (19 CFR) is 134 – Country of Origin Marking or as it is commonly known, 19 CFR 134.
When a shipment is going through an intensive examination by U.S. Customs and Border Protection, one of the areas that inspectors will focus on is compliance with Country of Origin Marking.
Country of Origin Marking is very important for three main reasons:
- Allows the ultimate consumer to know what the country of origin is of the article he or she is purchasing
- Allows U.S. Customs and Border Protection to properly assess duties and control, limit or restrict the entrance of merchandise from certain countries
- Allows U.S. Customs and Border Protection to collect accurate statistical
information on imports into the United States
I am summarizing some of the most important Sections within 19 CFR 134. These should be taken as reference or as a starting point in your compliance efforts with Country of Origin Marking. However, please contact your U.S. Customs Broker or Customs Consultant for your particular situations and needs.
Section 134.1 (b) Definition of Country of Origin
Country of origin means the country of manufacture, production, or growth of any article of foreign origin entering the United States.
In some cases, companies interpret the country of origin as the country of purchase or export, which is not necessarily the country of origin as defined above.
Section 134.11 Country of Origin Marking Required
Unless excepted by law, it is required that every article imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to an ultimate purchaser in the United States he English name of the country of origin of the article, at the time of importation into the Customs territory of the United States. Containers of articles excepted from marking shall be marked with the name of the country of origin of the article unless the container is also excepted from marking.
Here, it is mentioned that the marking has to be in a conspicuous (visible) place and that the marking is legible (with the proper font or size of lettering in proportion to the size of the article or container) and permanent (printed on article or container, labels that have strong adhesives or tags that are tied to the article or container with strong and durable materials) so that it can reach the ultimate consumer (also, see 19 CFR 134.41 and 19 CFR 134.44 for a more detailed explanation). These marking requirements cover most of the articles, however, there are certain articles such as watches, steel products, shoes and wearing apparel that have specific marking requirements. These are mentioned in 19 CFR 134.43 and in other sections of 19 CFR.
Under 19 CFR 134.43 (e), if an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such article may be marked, as appropriate, in a manner such as the following:
(1) Assembled in (country of final assembly);
(2) Assembled in (country of final assembly) from components of (name of country or countries of origin of all components); or
(3) Made in, or product of, (country of final assembly).
Also, it is mentioned that there are articles that might be excepted from marking. The Sections mentioned below cover these exceptions.
Section 134.32 General Exceptions to Marking Requirements
There are several exceptions to the marking requirements cited in Section 134.42. However, there are a few that are most common:
(g) Articles to be processed in the United States by the importer or for his account otherwise than for purposes of concealing the origin of such articles and in such a manner that any mark contemplated by this part would necessarily be obliterated, destroyed, or permanently concealed; (j) Articles entered or withdrawn from warehouse for immediate exportation or for transportation and exportation;
(m) Products of the United States exported and returned;
(q) Goods of a NAFTA country which are provided for in subheading 6904.10 or heading 8541 or 8542 of the HTSUS
The marking exception under 19 CFR 134.32 (g) is very common. Companies that import articles that will be furthe processed in the United States by Original Equipment Manufacturer’s (OEM) such as automotive parts of electrical parts, can apply this provision and each individual article can be excempted from marking. However, you need to get this provision approved by Customs via a Marking Waiver Letter. Your Customs Broker can assist you with this process.
It is important to mention that although the individual articles are excempted from marking, the outermost container should be marked with the country of origin or the articles.
Section 134.33 J-List Exceptions
There are several articles that because of its nature, are excempted from marking. These are listed in the J-List included under 19 CFR 134.33. Some of these articles are:
- Works of art
- Ball bearings of a diameter of 5/8” or less
- Bolts, nuts and washers
- Buttons
- Screws
Also, it is important to mention that although the individual articles are excempted from marking, the outermost container should be marked with the country of origin of the articles.
Section 134.26 Imported Articles Repacked or Manipulated
If an article is intended to be repacked in retail containers (e.g., blister packs) after release from Customs Custody, or if the port director having custody of the article has reason to believe such article will be repacked after its release, the importer shall certify to the port director that: (1) If the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new
container shall be marked to indicate the country of origin of the article in accordance with the requirements of 19 CFR 134; or (2) if the article is intended to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or transferee, in writing, at the time of sale or transfer, that any repacking of the article must conform to the requirements of 19 CFR 134.
The importer, or his authorized agent, should sign and present to Customs at the time of entry summary a Certificate of Marking by Importer – Repacked Articles Subject to Marking. The format and wording is covered in 19 CFR 134.26 (a). Also, if the articles are sold or transferred to a subsquent purchaser or repaker, a Notice to Subsequent Purchaser or Repacker should be given to comply with the requirements of 19 CFR 134. The format and wording of this notice is covered in 19 CFR 134.26 (d).
Section 134.46 Marking when Name of Country or Locality other than County of Origin Appears
In any case in which the words “United States” or “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or location in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced appear on an imported article or its container, and
those words, letterss or names may mislead or deceive the ultimate purchaser as to the actual country of origin of the article, there shall appear legibly and permanently in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by “Made In,” “Product of,” or other words of similar meaning.
In some cases, the packing or containers of articles imported into the United States, will mention the name and address of the importer or buyer of the articles in the United States or in a foreign country or the name and address of the parent company in the United States or in a foreign country that manufactures or assembles the product in a foreign country. This can be misleading since this does not reflect the actual country of origin of the article (county of manufacture or assembly). Because of this, please make sure that you also include in the article or its container the country of origin of the article in close proximity and in comparable size to the name and address of the United States or foreign entity.
Section 134.2 Additiona Duties
Articles not marked as required by 19 CFR 134 shall be subject to additional duties of 10 percent of the final appraised value unless exported or destroyed under Customs supervision prior to liquidation of the entry, as provided in 19 U.S.C. 1304 (f). The 10 percent additional duty is assessable for failure either to mark the article (or container) to indicate the English name of the country of origin of the article or to include words or symbols required to prevent deception or mistake.
In general, if Customs determines that a shipment is not compliant with 19 CFR 134, they will issue a Customs Form 4647 – Notice to Mark and Redeliver and will provide with 30 days from the date of entry to either mark, export or destroy the non-compliant shipment.