CSMS Message: 96-000827

TO : ALL ABI BROKERS.

FROM : HOWARD ZZ-DUCHAN

SUBJECT : C/O MARKING FOR BEARINGS

DATE : 09/30/96

TO: ALL BROKERS & IMPORTERS OF ANTI-FRICTION BEARINGS & BEARING
PARTS:

THE TEXT OF THE FOLLOWING MESSAGE & ATTACHMENT WILL BE
DISSEMINATED TO IMPORTERS & CONSIGNEES OF ANTI-FRICTION BEARINGS
& BEARING PARTS CLASSIFIED IN HEADING 8482, SUBHEADINGS 8483.20 AND
8483.30 FOR THE PERIOD 10-01-94 THROUGH 06-30-95. PLEASE PASS TO
ALL NEW BEARINGS IMPORTERS.

ON 12/8/93, TITLE 6 OF PUBLIC LAW 103-182 MANDATED THAT CUSTOMS
TAKE STEPS TO INFORM MEMBERS OF THE IMPORTING PUBLIC OF THEIR
OBLIGATIONS UNDER THE CUSTOMS LAWS OF THE U.S. CONSISTENT WITH
THIS COMMITMENT, THE ATTACHED GUIDELINES FOR COUNTRY OF ORIGIN
(C/O) MARKING OF ANTI-FRICTION BEARINGS & BEARING PARTS ARE
PROVIDED FOR YOUR REFERENCE. THE NATIONAL IMPORT SPECIALIST
(NIS) DIVISION WITH THE WITH THE OFFICE OF FIELD OPERATIONS
HAS DISTRIBUTED THESE GUIDELINES TO IMPORT SPECIALISTS AT THE
PORTS OF ENTRY. CUSTOMS' OFFICE OF STRATEGIC TRADE HAS
LIKEWISE INFORMED THE IMPORT SPECIALISTS OF THE ISSUANCE OF THE
GUIDELINES TO YOU.

THIS NOTICE AND ITS ATTACHMENT ARE THE U.S. CUSTOMS SERVICE'S
CHOSEN MECHANISM FOR FULFILLING ITS INFORMED COMPLIANCE MANDATE
FOR THIS INDUSTRY IN THIS INSTANCE. ITS ISSUANCE DOES NOT
REFLECT SUSPICION OF WRONGDOING BY YOUR COMPANY, ITS SUPPLIERS,
CUSTOMERS OR ANY OTHER PARTY TO THE IMPORTATIONS OF THE
AFOREMENTIONED MERCHANDISE. MANY OTHER MEMBERS OF THE IMPORTING
COMMUNITY HAVE RECEIVED THE SAME NOTICE AND ATTACHMENT. YOUR
RECEIPT OF THEM DOES MEANS THAT: 1) YOUR COMPANY IS AWARE THAT IT
IS A PARTNER WITH THE U.S. CUSTOMS SERVICE IN THE IMPORT
COMPLIANCE PROCESS; 2) YOUR FIRM HAS LEGAL OBLIGATIONS UNDER THE
CUSTOMS LAWS OF THE U.S. IN CONSEQUENCE OF ITS ROLE IN THE
IMPORTATION OF FOREIGN MERCHANDISE; AND 3) DISREGARD OF THESE
OBLIGATIONS MAY SUBJECT YOUR COMPANY OR ANOTHER PARTY (OR
PARTIES) TO THE AFOREMENTIONED TRANSACTIONS TO PENALTIES OR
OTHER REMEDIAL ACTION. THE IMPORT SPECIALIST AT THE PORT OF
ENTRY THROUGH WHICH A SPECIFIC IMPORTATION OCCURS HAS FULL
AUTHORITY TO ENFORCE THE C/O MARKING REGULATIONS SET FORTH IN
TITLE 19, PART 134 OF THE CODE OF FEDERAL REGULATIONS AS THEY
PERTAIN TO THAT SHIPMENT. FOR THIS REASON, ANY QUESTIONS ABOUTTHE
APPLICATION OF THESE GUIDELINES IN YOUR COMPANY'S SPECIFIC
CIRCUMSTANCES SHOULD BE REFERRED TO THE APPROPRIATE IMPORT
SPECIALIST AT THE RELEVANT PORT OF ENTRY.

COUNTRY OF ORIGIN (C/O) MARKING GUIDELINES FOR BEARING IMPORTS:

THE PURPOSE OF THIS MESSAGE IS TO REITERATE THE GENERALGUIDELINES
THAT CUSTOMS FEELS SHOULD BE APPLIED IN REGARDS TO THE PROPER
C/O MARKING OF IMPORTED BALL & ROLLER BEARINGS. THIS IS
NECESSARY BECAUSE OF THE SIGNIFICANT CHANGES IN SOURCE COUNTRIES
THAT HAVE OCCURRED IN THE LAST FEW YEARS. ANTI-DUMPING CASES
HAVE CAUSED NEW MARKETS TO SPRING UP, ESPECIALLY IN COUNTRIES
LIKE CHINA. INDUSTRY FEEDBACK HAS INDICATED THAT BEARINGS,
MOSTLY FROM THESE NEWER PRODUCERS, ARE ENTERING THE U.S. COMMERCE
WITHOUT ANY INDICATION AS TO THEIR ORIGIN. THE PROLIFERATION OF
THESE BEARINGS IN THE MARKETPLACE IS SO BROAD THAT THEY ARE NOW
FEATURED IN RETAIL CATALOGS. AS SUCH WE WOULD LIKE TO REMIND ALL
CONCERNED PARTIES OF THE RULES, AS PER SEC. 134 OF THE
CUSTOMS REGULATIONS, AND AS PER SPECIFIC HQ RULINGS.

THE LAW:

1) ALL BEARINGS ARE TO BE MARKED, IN A LEGIBLE, CONSPICUOUS,
PERMANENT MANNER, IN ENGLISH, WITH THEIR C/O.
2) C/O IS DETERMINED BY THAT COUNTRY IN WHICH THE RACES (RINGS)
WERE PRODUCED, WHETHER GROUND OR UNGROUND, HEAT TREATED OR NOT.
GRINDING, POLISHING OR ASSEMBLY OF COMPONENTS IN COUNTRY A, THAT
WERE PRODUCED IN COUNTRY B, DOES NOT ALLOW COUNTRY A TO BE THE
C/O.

ACCEPTABLE METHODS OF MARKING:

3) BEARINGS SHALL BE MARKED EITHER BY DIE-STAMPING, ACID ETCHING,
LASER ETCHING, OR ENGRAVING ON THE SIDE OF ONE OF THE RACES, OR
ON THE SURFACE OF THE OUTER RACE (COMMON FOR ACID OR LASER
ETCHING). IN THE ALTERNATIVE, PERMANENT MARKING ON THE METAL
SHIELDS OR RUBBER SEALS, OF THOSE BEARINGS SO EQUIPPED, IS
ACCEPTABLE.

4) REMOVAL, AFTER IMPORTATION, OF THIS MARKING, EITHER BY
MECHANICAL MEANS OR BY REMOVAL OF THE SHIELD SEAL, IS A CLEAR
VIOLATION OF THE REGULATIONS AND IS TO BE TREATED ACCORDINGLY.

5) J-LIST BEARINGS. THE MARKING REGULATIONS PROVIDE A SPECIFIC
MARKING EXCLUSION FOR BEARINGS WITH OUTER DIAMETERS OF 5/8 INCH
OR LESS. THE EXCLUSION STATES THAT THE BEARING ITSELF DOES NOT
NEED TO BE INDIVIDUALLY MARKED WITH THE C/O. HOWEVER, IT GOES ON
TO STATE THAT THE BEARING WILL BE SOLD IN A CONTAINER THAT
CLEARLY DISPLAYS THE C/O. THIS CAN TAKE THE FORM OF INDIVIDUAL
RETAIL BOXES, PLASTIC TUBES (OF A SIZE NORMALLY USED IN RETAIL
SALE), OR PLASTIC, SEALED WRAPPERS. IT IS UP TO THE INDIVIDUAL
PORT TO DETERMINE WHAT MANNER WILL MOST MEET THE INTENT OF THE
REGULATIONS.

6) THE BEARING ITSELF MAY BE EXCEPTED FROM MARKING IF IMPORTED
SOLD IN INDIVIDUAL RETAIL BOXES, PROVIDED THE PORT DETERMINES
THAT THE BOX IS CLEARLY MARKED WITH THE C/O.

7) WITH THE POSSIBLE EXCEPTION OF PARAGRAPH 5, THE MARKING OF
PLASTIC TUBES, OR THE OUTER SURFACE OF BULK WRAPPERS, IN WHICH
MULTIPLE BEARINGS ARE PACKED, IS NOT AN ACCEPTABLE SUBSTITUTE FOR
INDIVIDUAL MARKING.

8) STAMPING OF THE COUNTRY NAME ONLY IS ACCEPTABLE. BECAUSE OF
SPACE LIMITATIONS IT IS NOT NECESSARY TO STATE "MADE IN". UNLESS
OTHERWISE EXCEPTED BY CUSTOMS, THE FULL COUNTRY NAME MUST APPEAR,
NOT UNFAMILIAR ABBREVIATIONS. TERMS SUCH AS PRC (CHINA),
RO (ROMANIA), CSSR (CZECH REP. OR SLOVAK REP), TW (TAIWAN) ARE
NOT PERMITTED.

EXCEPTIONS:

9) WHILE THE REGULATIONS DO PROVIDE FOR SITUATIONS IN WHICH
BEARINGS MAY BE EXCEPTED FROM MARKING, REMEMBER THAT IT IS SOLELY
FOR THE REASONS SPECIFIED IN 19 CFR 134.32 AND 134.33. THE RULES
CLEARLY STATE THAT ALL MERCHANDISE SHALL BE MARKED. EXCEPTIONS
ARE TO BE GRANTED ONLY WHEN THE INDIVIDUAL CIRCUMSTANCES JUSTIFY
IT. IN THIS INDUSTRY THE MOST COMMONLY REQUESTED EXCEPTION IS
FOR MERCHANDISE THAT IS TO BE SOLD TO AN "ULTIMATE PURCHASER",
NORMALLY AN OEM THAT INCORPORATES THE BEARING INTO HIS PRODUCT.
EXPERIENCE HAS ALSO SHOWN THAT THIS IS ALSO THE MOST ABUSED FORM
OF MARKING EXCEPTION.

10) IF YOU DECIDE TO GRANT AN "ULTIMATE PURCHASER" EXCEPTION THE
FOLLOWING GUIDELINES SHOULD BE FOLLOWED:

A) THE IMPORTER SHOULD FILE THE REQUEST IN ADVANCE OF THE
IMPORTATION.

B) A LETTER, FROM THE END USER, SIGNED BY A CORPORATE OFFICER
CLEARLY ACKNOWLEDGING THAT HE SHE IS AWARE OF THE TRUE C/O OF THE
BEARINGS, AND THAT AT NO TIME WILL THEY RESELL THESE BEARINGS IN
THE IMPORTED CONDITION, SHOULD BE PROVIDED. IT IS THE RIGHT OF
THE CUSTOMS SERVICE TO VERIFY THE ACCURACY OF THESE STATEMENTS AT
ANY TIME.

C) DOCUMENTARY PROOF, SUCH AS CONTRACTS, PURCHASE ORDERS, OR
SALES RECORDS, THAT CAN VERIFY THAT THE QUANTITIES OF BEARINGS TO
BE EXCEPTED FROM MARKING MATCHES THE ULTIMATE USER
CONSUMPTION, SHOULD BE REQUIRED.

D) BE AWARE THAT SOME IMPORTS INVOLVE MULTIPLE LAYERS OF
DISTRIBUTORS. THE CONSIGNEE ON A SHIPMENT COULD IN TURN ACT
MERELY AS A CLEARINGHOUSE FOR BEARINGS, WITH THE ACTUAL SHIPMENT
GOING TO AN UNDECLARED THIRD, FOURTH OR FIFTH PARTY BEFORE THE
ARRIVE AT THE ACTUAL "END USER".

11) THE SECOND MOST COMMON REQUEST FOR AN EXCEPTION IS FOR
REPACKING IN THE U.S. GUIDANCE IN THIS AREA COMES FROM C.S.D.
92-25, DATED 11/20/91, EXCERPTS OF WHICH ARE REPRINTED HERE.
THEY APPLY TO MERCHANDISE THAT HAS ENTERED THE U.S. IN UNMARKED
OR UNACCEPTABLE CONDITION.

" FOR UNMARKED ARTICLES NOT INCLUDED WITHIN THE SCOPE OF 19 CFR
134.25, A SEPARATE PROCEDURE UNDER 19 CFR 134.34 IS AVAILABLE TO
IMPORTERS. UNDER THAT PROVISION, AN EXCEPTION FROM INDIVIDUAL
C/O MARKING MAY BE AUTHORIZED IN THE DISCRETION OF THE DISTRICT
DIRECTOR PURSUANT TO 19 CFR 134.32 (D), PROVIDED THAT THE
ARTICLES ARE REPACKED AFTER IMPORTATION UNDER THE SUPERVISION OF
THE DISTRICT DIRECTOR SUCH THAT THE MARKING ON THE NEW CONTAINER
WILL INDICATE THE ARTICLES C/O TO THEIR ULTIMATE PURCHASERS.
THE DISTRICT DIRECTOR RETAINS BROAD DISCRETION CONCERNING WHETHER
THE EXCEPTION SHOULD BE GRANTED, AND TO SPECIFY THE TYPES OF
SUPERVISION REQUIRED, WHICH MAY INCLUDE DIRECT INSPECTION, THE
SUBMISSION OF VERIFICATIONS OR SAMPLES, OR SUCH OTHER
DEMONSTRATION OF COMPLIANCE AS THE DISTRICT DIRECTOR MAY REQUIRE.
. . IN CASES IN WHICH THE IMPORTER IS NOT THE REPACKER, THE
DISTRICT DIRECTOR MAY REQUIRE SUCH ASSURANCES AS HE DEEMS
NECESSARY TO ASSURE THAT OTHERS WILL REPACK THE ARTICLES IN SUCH
MANNER AS TO SATISFY ALL REQUIREMENTS OF 19 U.S.C.1304 AND PART
134, CUSTOMS REGULATIONS."

12) PLEASE NOTE, AS THIS RULING MAKES VERY CLEAR, THAT CUSTOMS
DISAPPROVES OF THE ROUTINE PRESENTATION FOR ENTRY OF ARTICLES
WHICH THE IMPORTER, WITHOUT PRIOR CUSTOMS APPROVAL, PLANS TO MARK
AFTER IMPORTATION. "CUSTOMS OFFICIALS ARE AUTHORIZED TO TAKE A
NUMBER OF STEPS AGAINST IMPORTERS WHO HABITUALLY FAIL TO COMPLY
WITH THE C/O MARKING REQUIREMENTS, INCLUDING, AFTER APPROPRIATE
WARNINGS, SEIZURES UNDER 19 U.S.C. 1595A (C)." CONSIDERING THE
SENSITIVITY OF THE C/O OF BEARINGS AS IT RELATES TO ONGOING
ANTI-DUMPING & COUNTERVAILING DUTY CASES, THIS QUOTATION SHOULD
BE TAKEN VERY SERIOUSLY.

SUMMARY

IT IS THE GOAL OF THE CUSTOMS SERVICE TO BRING ALL SEGMENTS OF
THIS INDUSTRY INTO FULL COMPLIANCE WITH THE MARKING STATUTES.

MARK LARIA
CHIEF, COMMERCIAL ENFORCEMENT

Referenced By

CSMS #97-000037