H329916

H329916 March 28, 2025 OT:RR:CTF:FTM H329916 TSM CATEGORY: Origin; Marking Salma Manji Manji Trading Inc. 125 Norfinch Dr. unit #115 North York, N/A M3N1W8 Canada Re: Country of Origin Marking of Worn Donated Clothing Dear Ms. Manji: This letter is in response to a request from Manji Trading Inc., (“MTI” or “Requestor”), for a binding ruling, dated January 19, 2023, concerning the country of origin marking of certain worn donated clothing processed in Canada and imported into the United States. This request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for review. Our ruling is set forth below. FACTS: The merchandise at issue is worn clothing donated in the United States and Canada at thrift stores, charities, and similar organizations. The requestor states that, often, the supply of donated clothing is greater than the demand, resulting in charitable organizations’ inability to process all items. Rather than send the excess donated used clothing to the landfill, the clothing is gathered into bales and sold in bulk or at wholesale to MTI’s suppliers by the truckloads. MTI’s suppliers export most items to third world countries for resale. Yet, before the items are exported, MTI staff examine pieces and set aside items described as “vintage,” “fashion forward,” or “trending.” These items brought to MTI’s warehouse in Canada. While at the warehouse, the clothing is extensively processed. Specifically, it is graded, checked, scrubbed, washed, repaired, overdyed, and re-graded, in preparation for importation into the United States and resale. While no garments are manufactured inside the warehouse, the Requestor asserts that based on the processing steps performed at the warehouse that it should be considered the manufacturer. For garments processed for resale with tags, MTI suggests identifying the warehouse as the manufacturer for country of origin purposes. With regard to items without tags, the Requestor suggests identifying Canada as the country of origin and the warehouse as the manufacturer. In addition, MTI proposes to attach a removable fabric label to each garment, which will read as follows: “Processed, Packaged and/or Produced in Canada.” ISSUES: What is the country of origin marking of the worn donated clothing? Is the marking “Processed, Packaged and/or Produced in Canada” an acceptable country of origin marking? Is it acceptable to identify the warehouse in Canada as the manufacturer of the worn donated clothing at issue? LAW AND ANALYSIS: Country of Origin Marking The marking statute, Section 304(a), Tariff Act of 1930, as amended (19 U.S.C. § 1304(a)), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. By enacting 19 U.S.C. § 1304, Congress intended to ensure that the ultimate purchaser would be able to know by inspecting the marking on the imported goods the country of which the goods are the product. “The evident purpose is to mark the goods so that at the time of purchaser the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 C.A.D. 104 (1940). Part 134 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Specifically, 19 C.F.R. § 134.11, provides that unless excepted, every article of foreign origin (or its container) 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 manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article, at the time of importation into the Customs territory of the United States. Country of origin is defined in the regulations, 19 C.F.R. § 134.1(b), as “the country of manufacture, production, or growth of any article of foreign origin entering the United States.” The “ultimate purchaser” is generally defined in 19 C.F.R. § 134.1(d) as the last person in the United States who will receive the article in the form in which it was imported. Pursuant to 19 C.F.R. § 134.41(b), the ultimate purchaser in the United States must be able to find the origin marking easily and read it without strain. The degree of permanence of the marking should be sufficient to ensure that in any reasonably foreseeable circumstance, the marking shall remain on the article (or its container) until it reaches the ultimate purchaser unless it is deliberately removed. The marking must survive normal distribution and store handling. General exceptions to the marking requirements are provided for in 19 C.F.R. § 134.32. 2 Pursuant to 19 C.F.R. § 134.46, whenever the name of any foreign country or locality in which the article was manufactured or produced appear on an imported article or its container, and those words, letters 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 of the product preceded by “Made in,” “Product of,” or other words of similar meaning. The country of origin of used clothing purchased from the Salvation Army, Goodwill Industries, and similar charitable organizations has previously been considered by U.S. Customs and Border Protection (“CBP”). For example, in HQ 730174, dated March 31, 1987, CBP determined that used clothing was of U.S. origin because it was purchased from the Salvation Army, Goodwill Industries stores, and similar organizations within the United States, and therefore presumed to have been worn and used in the United States. Similarly, in HQ 732409, dated September 25, 1989, CBP determined that used clothing purchased from the Salvation Army in Canada was presumed to have been worn and used in Canada and could be marked “Made in Canada.” CBP further concluded that the marking would eliminate the need to sort the clothing by original country of origin as well as eliminate the problem of not knowing the original country of origin of every single garment. In NY N301563, dated November 28, 2018, CBP found phrases such as “DESIGNED IN,” “FURTHER PROCESSED IN,” “FINISHED IN” and “PACKAGED IN” to be acceptable, provided that those phrases accurately reflect the work performed. Similarly, in HQ 560195, dated March 19, 1997, CBP found that any marking describing the processing performed is acceptable, so long as it is truthful and does not indicate an incorrect country of origin. Specifically, markings such as “PROCESSED IN CANADA,” “CUT AND PACKAGED IN CANADA,” “CUT, FOLDED, AND PACKAGED IN CANADA,” and “FURTHER PROCESSED IN CANADA,” were found to be acceptable. In both NY N310563 and HQ 560195, CBP also noted that the referenced acceptable markings must also meet the requirements of 19 C.F.R. § 134.46, which provides, in relevant part, that when any country or locality other than the country or locality in which the article was manufactured or produced appears on an imported article or container, and 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 and in at least a comparable size, the name of the country of origin of the article preceded by “Made in,” “Product of,” or other words of similar meaning. See also HQ 735372, dated March 16, 1995 (finding that a marking

Country of Origin Marking The marking statute, Section 304(a), Tariff Act of 1930, as amended (19 U.S.C. § 1304(a)), provides that unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. By enacting 19 U.S.C. § 1304, Congress intended to ensure that the ultimate purchaser would be able to know by inspecting the marking on the imported goods the country of which the goods are the product. “The evident purpose is to mark the goods so that at the time of purchaser the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 C.A.D. 104 (1940). Part 134 of Title 19 of the Code of Federal Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Specifically, 19 C.F.R. § 134.11, provides that unless excepted, every article of foreign origin (or its container) 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 manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article, at the time of importation into the Customs territory of the United States. Country of origin is defined in the regulations, 19 C.F.R. § 134.1(b), as “the country of manufacture, production, or growth of any article of foreign origin entering the United States.” The “ultimate purchaser” is generally defined in 19 C.F.R. § 134.1(d) as the last person in the United States who will receive the article in the form in which i