16644 Federal Register / Vol. 62, No. 66 / Monday, April 7, 1997 / Notices

Type of Review: Extension.

Title: Information Return for Publicly

Offered Original Issue Discount

Instruments.

Description: Form 8281 is filed by the

issuer of a publicly offered debt

instrument having Original Issue

Discount (OID). The information is used

to update Publication 1212, List of

Original Issue Discount Instruments.

Respondents: Business or other forprofit.

Estimated Number of Respondents/

Recordkeepers: 500.

Estimated Burden Hours Per

Respondent/Respondent:

Recordkeeping—5 hr., 16 min.

Learning about the law or the form—

24 min.

Preparing, copying, assembling, and

sending the form to the IRS—35 min.

Frequency of Response: On occasion.

Estimated Total Reporting/

Recordkeeping Burden: 3,080 hours.

OMB Number: 1545–0892.

Form Number: IRS Form 8300.

Type of Review: Revision.

Title: Report of Cash Payments Over

$10,000 Received in a Trade or

Business.

Description: Anyone in a trade or

business who, in the course of such

trade or business, receives more than

$10,000 in cash or foreign currency in

one or more related transactions must

report it to the IRS and provide a

statement to the payor. Any transaction

which must be reported under Title 31

on Form 4789 is exempted from

reporting the same transaction on Form

8300.

Respondents: Business or other forprofit, Farms, Federal Government.

Estimated Number of Respondents/

Recordkeepers: 46,800.

Estimated Burden Hours Per

Respondent/Recordkeeper: 21 minutes.

Frequency of Response: On occasion.

Estimated Total Reporting/

Recordkeeping Burden: 63,539 hours.

OMB Number: 1545–1131.

Regulation Project Number: INTL–

485–89 Final.

Type of Review: Extension.

Title: Taxation of Gain or Loss from

Certain Nonfunctional Currency

Transactions (Section 988 Transactions).

Description: Section 988(c)(1) (D) and

(E) require taxpayers to make certain

elections which determine whether

section 988 applies. In addition,

sections 988(a)(1)(B) and 988(d) requires

taxpayers to identify transactions which

generate capital gain or loss or which

are hedges of other transactions.

Respondents: Business or other forprofit, Individuals or households.

Estimated Number of Respondents/

Recordkeepers: 5,000.

Estimated Burden Hours Per

Respondent/Recordkeeper: 40 minutes.

Frequency of Response: Annually.

Estimated Total Reporting/

Recordkeeping Burden: 3,333 hours.

Clearance Officer: Garrick Shear (202)

622–3869, Internal Revenue Service,

Room 5571, 1111 Constitution Avenue,

NW., Washington, DC 20224.

OMB Reviewer: Alexander T. Hunt

(202) 395–7860, Office of Management

and Budget, Room 10226, New

Executive Office Building, Washington,

DC 20503.

Lois K. Holland,

Departmental Reports Management Officer.

[FR Doc. 97–8732 Filed 4–4–97; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY

Customs Service

Country of Origin Marking

Requirements for Wearing Apparel

AGENCY: U.S. Customs Service,

Department of the Treasury.

ACTION: Notice of withdrawal of

proposed change of practice.

SUMMARY: This notice advises the public

that Customs is withdrawing its

proposed change of practice regarding

the country of origin marking of wearing

apparel. As provided in T.D. 54640(6),

wearing apparel, such as shirts, blouses,

coats, sweaters, etc., must be marked

with the name of the country of origin

by means of a fabric label or label made

from natural or synthetic film, sewn or

otherwise permanently affixed on the

inside center of the neck midway

between the shoulder seams or in that

immediate area, or otherwise

permanently marked in that area in

some other manner. Button tags, string

tags and other hang-tags, paper labels,

and other similar methods of marking

will not be acceptable.

EFFECTIVE DATE: Withdrawal effective

April 7, 1997.

FOR FURTHER INFORMATION CONTACT:

Monika Rice, Special Classification &

Marking Branch, Office of Regulations &

Rulings (202–482–6980).

SUPPLEMENTARY INFORMATION:

Background

Section 304 of the Tariff Act of 1930,

as amended (19 U.S.C. 1304), provides

that, unless excepted, every article of

foreign origin (or its container) imported

into the U.S. shall be marked in a

conspicuous place as legibly, indelibly,

and permanently as the nature of the

article (or its container) will permit, in

such a manner as to indicate to the

ultimate purchaser in the U.S. the

English name of the country of origin of

the article. Part 134, Customs

Regulations (19 CFR Part 134),

implements the country of origin

marking requirements and exceptions of

19 U.S.C. 1304.

A proposed change of practice was

published in the Federal Register (60

FR 57621) on November 16, 1995,

advising the public that Customs

intended to review the country of origin

marking of certain wearing apparel. By

T.D. 54640(6), 93 Treas. Dec. 301 (1958),

Customs requires wearing apparel, such

as shirts, blouses, coats, sweaters, etc.,

to be legibly and conspicuously marked

with the name of the country of origin

by means of a fabric label or label made

from natural or synthetic film, sewn or

otherwise permanently affixed on the

inside center of the neck midway

between the shoulder seams or in that

immediate area, or otherwise

permanently marked in that area in

some other manner. Button tags, string

tags and other hang-tags, paper labels

and other similar methods of marking

are not considered acceptable.

The proposed change of practice, if

adopted, would have modified that

portion of T.D. 54640(6) relating to the

requirement of a fabric label or label

made from natural or synthetic film

sewn to the article, and the

disallowance of button tags, string tags

and other hang-tags, paper labels and

other similar methods of marking.

Rather, it was proposed to evaluate the

country of origin marking of wearing

apparel, such as shirts, blouses, coats,

sweaters, etc., on a case-by-case basis to

determine if it is conspicuous, legible,

indelible, and permanent to a degree

sufficient enough to remain on the shirt

until it reaches the ultimate purchaser.

The notice of the proposed change of

practice arose from a ruling request

dated June 1, 1994, concerning the

country of origin marking on a man’s

football shirt which featured a woven

textile label, identified as a ‘‘jock tag,’’

2 inches long by 41⁄2 inches wide,

stitched on the exterior right-hand side

of the shirt, approximately 2 inches

above the bottom hem and 1 inch from

the side seam. Embroidered on the left

side of this label in red and blue threads

on a white background was a stitched

logo and trade name. The size of the

garment, care instructions, the country

of origin, and RN number were stitched

on the right side of the label in bright

blue lettering on a light background.

The inquirer requested that Customs

allow the use of a hang-tag in the center

of the neck midway between the

shoulder seams to indicate the country

of origin of the shirt, rather than require
Federal Register / Vol. 62, No. 66 / Monday, April 7, 1997 / Notices 16645

a sewn-in label since the woven textile

label on the outside of the shirt satisfies

the conspicuous, legible, indelible, and

permanent requirements of 19 U.S.C.

1304.

Customs has provided an exception to

the sewn-in label requirement of T.D.

54640(6) only in the context of

reversible garments. By T.D. 55015(4),

95 Treas. Dec. 3 (1960), the country of

origin marking of reversible garments

was permitted to be looped around a

hanger. On the basis of this extension,

Customs has allowed ladies’ reversible

jackets to be marked with a cardboard

hang-tag affixed to the neck area by

means of a plastic anchor tag. Customs

noted that since the jacket was

reversible, a fabric label sewn into the

jacket could damage the jacket when the

label was removed. See Headquarters

Ruling Letter (HRL) 731513 dated

November 15, 1988. Similarly, in HRL

733890 dated December 31, 1990,

Customs allowed women’s reversible

silk tank tops to be marked with a cloth

label, showing the country of origin and

other pertinent information sewn into a

lower side seam, and a hang-tag which

also provided the required information

attached at the neck. See also HRL

734889 dated June 22, 1993.

Upon request, an extension of time to

March 15, 1996, within which to submit

comments on the proposal was granted,

and a notice to that effect was published

in the Federal Register (61 FR 3763) on

February 1, 1996.

Analysis of Comments

Seventeen comments were received in

response to the notice; seven favored the

change of practice, ten opposed.

Supporters of the change stated their

belief that a more flexible approach,

other than only allowing a sewn-in

label, will be consistent with the

conspicuous and permanent

requirements of 19 U.S.C. 1304. Several

commenters stated that, as with sewn-in

labels, other marking methods would

have to be permanently affixed to the

garment sufficient enough to remain on

the article until it reaches the ultimate

consumer. Some supporters stated that

hang-tags display the country of origin

more conspicuously than sewn-in

labels, and compliance costs would

decrease if sewn-in labels were not

required.

Several commenters alleged that the

use of sewn-in labels has not

discouraged unlawful behavior, and a

company determined to misrepresent

the true country of origin will simply

sew in false labels. Supporters also

stated that hang-tags withstand normal

commercial and retail handling. These

commenters also alleged that sewn-in

labels irritate the consumer’s neck, and

that the garment may be damaged when

the label is removed from the garment.

The supporters also noted that the

Federal Trade Commission country of

origin requirement (16 CFR 303.15) does

not require a sewn-in label. One

commenter also stated that under

NAFTA and the Uruguay Round

Agreements Act, the U.S. made

commitments to achieve global

harmonization in labeling regulations,

and the use of other means other than

a sewn-in label would facilitate crossborder trade and just-in-time deliveries.

However, while supporters favored a

more flexible approach, several

commenters suggested that rather than a

case-by-case evaluation, Customs

should establish clear standards as to

acceptable alternatives to sewn-in

labels.

All of the comments opposing the

proposal alleged that methods of

marking, other than sewn-in labels, will

make it easier to transship garments and

misrepresent the true country of origin

by changing the label without damaging

the garment. The easiest method of

discovering transshipments is claimed

to either be an incorrect country of

origin label, a missing country of origin

label, or a damaged country of origin

label. One commenter stated that the

reason for section 334 of the Uruguay

Round Agreements Act (codified at 19

U.S.C. 2592) is to improve the ability to

track and investigate illegal

transshipments, especially in

circumstances where assembly confers

origin and the country of origin label is

sewn into the good in the country of

assembly.

Some of the opposing commenters

also stated that the use of hang-tags,

paper labels, or other markings not

permanently attached will not satisfy

the requirements of 19 U.S.C. 1304 that

the country of origin marking shall be in

a conspicuous place as legibly,

indelibly, and permanently as the

nature of the article will permit.

Another commenter stated that

consumers know and have expected for

40 years that the care label shows the

country of origin. Some commenters

stated that hang-tags are often lost

during packing and shipping, when

garments are tried on, when hangers are

switched or not used, or are discarded

at the point of sale by sales people who

see little or no need for them and may

even see them as a deterrent to a sale.

Finally, one commenter stated that there

would be less concern over the

proposed modification of T.D. 54640(6)

if permanent country of origin markings

were required for articles made in the

U.S.

Withdrawal of Proposed Change of

Practice

Customs has determined, after

reviewing all of the comments and upon

considering all factors, that the

requirement imposed by T.D. 54640(6)

shall remain in effect. As required by 19

CFR 134.41, the degree of permanence

should be at least sufficient to insure

that in any reasonably foreseeable

circumstance the marking shall remain

on the article until it reaches the

ultimate purchaser unless it is

deliberately removed. All of the

commenters in opposition to hang-tags

have warned against the deliberate

removal of hang-tags. While supporters

claim that hang-tags remain on an

article until it reaches the ultimate

purchaser and that any

misrepresentation of the true country of

origin usually occurs at the time of

assembly, it is Customs’ opinion that

because of the long-standing

expectations by importers and ultimate

purchasers that the country of origin

marking will be found at the center of

the neckline on a sewn-in label, the

requirements of T.D. 54064(6) should

remain in effect without modification.

Accordingly, the subject proposed

change of practice is withdrawn.

Therefore, wearing apparel, such as

shirts, blouses, coats, sweaters, etc.,

must be marked with the name of the

country of origin by means of a fabric

label or label made from natural or

synthetic film, sewn or otherwise

permanently affixed on the inside center

of the neck midway between the

shoulder seams or in that immediate

area, or otherwise permanently marked

in that area in some other manner.

Button tags, string tags and other hangtags, paper labels, and other similar

methods of marking will not be

acceptable. While Customs has allowed

and will continue to allow, due to

exigent circumstances, various

exceptions from the required location of

the sewn-in label, no exception from the

sewn-in (permanently affixed) labeling

requirement imposed by T.D. 54640(6)

will be granted, other than the one

allowed under T.D. 55015(4), and

proposals for further exceptions from

T.D. 54640(6) will not be evaluated on

a case-by-case basis.

George J. Weise,

Commissioner of Customs.

Approved: March 5, 1997.

Dennis M. O’Connell,

Acting Deputy Assistant Secretary of the

Treasury.

[FR Doc. 97–8774 Filed 4–4–97; 8:45 am]

BILLING CODE 4820–02–P