CSMS Message: 00-000974

TO: ALL ABI BROKERS.

FROM: CONRAD L HENRY

SUBJECT: MIS-MARKING INTERVENTION--CORRECTION

DATE: 08/29/2000

THE NEW YORK STRATEGIC TRADE CENTER (STC) BEGAN AN INTERVENTION
ON COUNTRY OF ORIGIN MARKING FOR THE WEARING APPAREL PRIMARY
FOCUS INDUSTRY (PFI) ON AUGUST 10, 2000. THIS INITIATIVE
INVOLVED THE MAILING OF AN INFORMED COMPLIANCE LETTER AND THE
INFORMED COMPLIANCE PUBLICATION (ICP), MARKING REQUIREMENTS FOR
WEARING APPAREL (DEVELOPED BY THE NATIONAL COMMODITY SPECIALIST
DIVISION). RECIPIENTS INCLUDED ALL NATIONAL AND PORT ACCOUNTS
FOR THIS MERCHANDISE, THE REMAINING TOP 500 WEARING APPAREL
IMPORTERS AND ALL COMPANIES WITH A MARKING DISCREPANCY AS A
RESULT OF THE FY99 COMPLIANCE MEASUREMENT EXAMS.

WE HAVE NOTED A CLERICAL ERROR IN THE INFORMED COMPLIANCE
LETTER, PAGE 2, PARAGRAPH 2, IN ONE OF THE CITATIONS TO THE
FEDERAL CODE OF REGULATIONS. THE FEDERAL TRADE COMMISSION'S
(FTC) IMPLEMENTING RULES ARE FOUND IN 16 C.F.R. 303, NOT 16
C.F.R. 103. BELOW IS A COPY OF THE CORRECTED LETTER.

DEAR SIR OR MADAM:

THE PURPOSE OF THIS LETTER IS TO CALL YOUR ATTENTION TO A
PATTERN OF DISCREPANCIES AND NON-COMPLIANCE INVOLVING COUNTRY OF
ORIGIN MARKING WITHIN THE WEARING APPAREL PRIMARY FOCUS INDUSTRY
(PFI). THIS MERCHANDISE IS CLASSIFIED UNDER THE HARMONIZED
TARIFF SCHEDULE OF THE UNITED STATES (HTSUS), CHAPTERS 61, 62
AND 65. ANALYSIS OF THE WEARING APPAREL PFI HAS DETERMINED THAT
17% OF ALL DISCREPANCIES IN THE PFI ARE A RESULT OF
NON-COMPLIANCE OF COUNTRY OF ORIGIN MARKING AND FIBER CONTENT
REQUIREMENTS. MARKING IS THE THIRD MOST PREVALENT DISCREPANCY
TYPE FOUND WITHIN THE WEARING APPAREL PFI. THE HIGH RATE OF
DISCREPANCIES HAS A SIGNIFICANT IMPACT ON THE OVERALL COMPLIANCE
RATE IN THE APPAREL INDUSTRY. TO REMEDY THIS SITUATION, WE ARE
ADVISING ALL SIGNIFICANT IMPORTERS AND IMPORTERS WITH PAST
COUNTRY OF ORIGIN MARKING VIOLATIONS, FILING ENTRY UNDER HTSUS
CHAPTERS 61, 62 AND 65 OF THIS PROBLEM. IN ORDER TO ALLEVIATE
ANY MISUNDERSTANDINGS THAT MAY EXIST IN THE TRADE REGARDING THE
MARKING REQUIREMENTS, AN INFORMED COMPLIANCE PUBLICATION,
ENTITLED "MARKING REQUIREMENTS FOR WEARING APPAREL", IS
ENCLOSED.

U.S. CUSTOMS RECORDS FOR FY 1999 IDENTIFY YOUR FIRM AS AN
IMPORTER OF RECORD FOR APPAREL UNDER HTSUS CHAPTERS 61, 62, AND
65. UNDER THE CUSTOMS MODERNIZATION ACT, NORTH AMERICAN FREE
TRADE AGREEMENT IMPLEMENTATION ACT, TITLE IV, P.L. 103-182, IT
IS THE RESPONSIBILITY OF THE IMPORTER OF RECORD TO EXERCISE
"REASONABLE CARE" AND PRESENT THEIR CUSTOMS ENTRIES IN PROPER
ORDER, AS WELL AS TAKE STEPS NECESSARY TO ENSURE COMPLIANCE.
IMPORTERS SHOULD NOT RELY EXCLUSIVELY ON THEIR CUSTOMS BROKER TO
PROCESS THEIR IMPORTS. ACCORDING TO THE "REASONABLE CARE
CHECKLIST" PUBLISHED IN THE FEDERAL REGISTER (VOL. 62 PAGE
48340, DATED SEPTEMBER 15, 1997), IF THE ENTRY DOCUMENTATION IS
PREPARED OUTSIDE OF YOUR ORGANIZATION, YOUR COMPANY SHOULD HAVE
A RELIABLE SYSTEM IN PLACE WHICH ENSURES THAT YOU RECEIVE COPIES
OF INFORMATION SUBMITTED TO U.S. CUSTOMS; THAT IT IS REVIEWED
FOR ACCURACY; AND THAT U.S. CUSTOMS IS TIMELY APPRAISED OF ANY
NEEDED CORRECTIONS. NON-COMPLIANCE OFTEN RESULTS WHEN AN
IMPORTER FAILS TO HAVE A RESPONSIBLE AND KNOWLEDGEABLE
INDIVIDUAL WITHIN THE IMPORTER'S ORGANIZATION REVIEW THE CUSTOMS
DOCUMENTATION PREPARED ON BEHALF OF THE IMPORTER BY THEIR
CUSTOMS BROKER.

SECTIONS 304 (A) AND (B) OF THE TARIFF ACT OF 1930, AS AMENDED
(19 U.S.C. 1304 (A) AND (B)) REQUIRE EVERY ARTICLE OR THEIR
CONTAINERS, UNLESS EXCEPTED, OF FOREIGN ORIGIN IMPORTED INTO THE
UNITED STATES TO BE MARKED IN A CONSPICUOUS PLACE AS LEGIBLY,
INDELIBLY, AND PERMANENTLY 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. THE COUNTRY OF ORIGIN MARKING
REQUIREMENTS ARE SET OUT IN PART 134, COUNTRY OF ORIGIN MARKING,
OF THE CUSTOMS REGULATIONS (19 C.F.R. 134). AN ESSENTIAL
COMPONENT TO CORRECTLY MARK TEXTILE AND APPAREL PRODUCTS IS
FIRST DETERMINING THE COUNTRY OF ORIGIN. THE REGULATIONS
GOVERNING THESE RULES ARE CONTAINED IN THE PART 102, RULES OF
ORIGIN, SUBPART B, OF THE CUSTOMS REGULATIONS (19 C.F.R.
102.11).

IMPORTERS ARE REMINDED OF ADDITIONAL LAWS ENFORCED BY U.S.
CUSTOMS. THE FEDERAL TRADE COMMISSION'S (FTC) IMPLEMENTING
RULES (16 C.F.R. 303), INCLUDES ADDITIONAL MARKING REQUIREMENTS
FOR TEXTILE AND APPAREL PRODUCTS. THESE REQUIREMENTS ARE
CODIFIED UNDER THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACT (15
U.S.C. 70), AND IMPLEMENTED BY 19 C.F.R. 141.113. IN ADDITION
TO THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACT, U.S. CUSTOMS
ALSO ENFORCES THE WOOL PRODUCTS LABELING ACT, AND THE FUR
PRODUCTS LABELING ACT. IMPORTERS SHOULD ALSO BE AWARE OF RECENT
CHANGES TO PART 102 OF THE CUSTOMS REGULATIONS (19 C.F.R. 102).
THESE CHANGES PERTAIN TO ARTICLES OF HTSUS SUBHEADING 6214.10.10
(SHAWLS, SCARVES, MUFFLERS, MANTILLAS, VEILS, AND THE LIKE) AND
HTSUS HEADING 5007 (WOVEN FABRICS OF SILK OR SILK WASTE). ON
JUNE 25, 1999 THE PRESIDENT SIGNED INTO LAW THE "MISCELLANEOUS
TRADE AND TECHNICAL CORRECTIONS ACT OF 1999" (PUB.L. 106-36, 113
STAT. 127). THROUGH SECTION 2423, SUBSECTION "H" HAS BEEN ADDED
TO SECTION 304 OF THE TARIFF ACT OF 1930. THIS CHANGE WAS
PUBLISHED IN THE FEDERAL REGISTER DATED SEPTEMBER 14, 1999 (64
FR 49842).

THIS LETTER IS BEING SENT TO ALL HIGH VOLUME IMPORTERS, AND
IMPORTERS WITH PAST COUNTRY OF ORIGIN MARKING VIOLATIONS, OF
APPAREL HTS CHAPTERS 61, 62, AND 65. THE PURPOSE OF THIS LETTER
IS TO INFORM YOU OF OUR CONCERNS AND THE CURRENT TREND OF
DISCREPANCIES. IN ADDITION, WE ALSO WANT TO REMIND YOU THAT
YOUR FIRM HAS THE RESPONSIBILITY UNDER THE CUSTOMS LAWS OF THE
UNITED STATES TO PRESENT YOUR ENTRIES CORRECTLY, AND IN THE
PROPER FORMAT. IF YOU ARE FILING YOUR ENTRIES CORRECTLY, AND
HAVE THE IMPORTED MERCHANDISE PROPERLY MARKED WITH THE COUNTRY
OF ORIGIN AT THE TIME OF IMPORTATION, THEN NO FURTHER ACTION IS
REQUIRED. HOWEVER, IF YOUR COMPANY'S INDIVIDUAL IMPORT
TRANSACTIONS ARE NOT FREE FROM THESE ERRORS, AND YOU DO NOT TAKE
IMMEDIATE CORRECTIVE ACTIONS DESIGNED TO FOSTER COMPLIANCE, YOUR
COMPANY COULD FIND ITSELF SUBJECT TO INCREASED ENTRY REVIEWS
AND/OR CARGO EXAMINATIONS, PENALTIES, OR OTHER REMEDIAL ACTIONS.

WE ARE ALSO REQUESTING THAT YOU ADVISE EACH OF THE CUSTOMS
BROKERS OR FILERS ACTING ON YOUR BEHALF, AS WELL AS THE FOREIGN
SUPPLIERS FROM WHOM YOUR COMPANY SOURCES THESE ITEMS, OF THE
MARKING REQUIREMENTS OUTLINED IN THE INFORMED COMPLIANCE
PUBLICATION. YOUR FIRM MAY FIND IT ADVANTAGEOUS TO MEET WITH
YOUR BROKER OR FILER AND DISCUSS THE NON-COMPLIANCE ISSUES
IDENTIFIED IN THIS LETTER, TO ENSURE THAT YOUR INDIVIDUAL IMPORT
TRANSACTIONS ARE FREE FROM THESE TYPES OF ERRORS.

ADDITIONAL INFORMED COMPLIANCE INFORMATION IN THE WEARING
APPAREL PFI, IS AVAILABLE VIA THE CUSTOMS INTERNET WEBSITE
WWW.CUSTOMS.USTREAS.GOV. ADDITIONAL INFORMATION SUBJECT TO
FEDERAL TRADE COMMISSION REQUIREMENTS CAN BE FOUND VIA THE
INTERNET WEBSITE WWW.FTC.GOV.

FOR FURTHER INFORMATION CONCERNING THIS MATTER, PLEASE CONTACT
INTERNATIONAL TRADE SPECIALIST MITCHEL LANDAU AT THE NEW YORK
STRATEGIC TRADE CENTER AT (212) 637-7733, THE IMPORT SPECIALISTS
AT YOUR PORT OF ENTRY, OR YOUR NATIONAL ACCOUNT MANAGER/PORT
ACCOUNT TEAM (IF APPLICABLE).

SINCERELY,

SIGNED

MARJORIE DELOACH
ACTING DIRECTOR
NEW YORK STRATEGIC TRADE CENTER