[Federal Register Volume 62, Number 66 (Monday, April 7, 1997)]
[Notices]
[Pages 16644-16645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8774]


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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.

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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 4\1/2\ 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

[[Page 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 cross-border 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 hang-tags, 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