1. 1 CHAPTER XI INSPECTIONS, PACKING & MARKING OF IMPORTED GOODS  Inspections of Imported Goods  Packing of the Imported Goods  Shipping Markings  Country of Origin Marking

2. 2 Inspections of Impored Goods 1.Exporter’s self inspection : Exporter’s Certificate of Inspection 2.Importer’s inspection : Certificate of Inspection signed by Importer or his Agent 3.Third party inspection : Certificate of Inspection signed by third party appointed by Importer 1)Initial production check 2)During production check 3)Final random inspection prior to shipment

3. 3 Inspections of Imported Goods  Third party inspection:  SGS (Societe Generale de Surveillance) (http://www.sgs.com): (http://www.sgs.com): Swiss-based international inspection & testing company SGS North America Web Site: http://www.us.sgsgroup.com.www.us.sgsgroup.com.

4. 4 Packing of Imported Goods  Factors in determining a shipping package –Breakage –Weight –Moisture –Pilferage –Dimension of a packing unit.  Most common exterior container: –Carton box (fiberboard box). –Palletizing cargo. A pallet carries up to 2,200 lbs.(1,000 kg). Heavy cargoes such as machinery must be palletized.

5. 5 Shipping Markings  Purposes:  To conform to the shipping regulations  To identify the shipments easily  To assure proper handling.  Any shipping markings revealing the contents such as a famous brand name product should not be used on exterior containers in order to deter pilferage.

6. 6 Shipping Markings  Markings on a shipping package  Identification mark  L/C No. or Order No.  Ctn No.  Gross Weight Net Weight  Port of Importation  Handling Marks, if necessary  Marking for hazardous materials, if necessary  Made In Name of Country

7. 7 Country of Origin Marking  Marking Requirements:  In a conspicuous place as legibly, indelibly, and permanently as the article permits with the English name of the country of origin which can be seen by the ultimate purchaser of the U. S. A.  Ultimate purchaser: The last person who will receive the article in the form in which it was imported. Retail buyers for consumer goods Manufacturers or assemblers for industrial goods

8. 8 Country of Origin Marking  Considered sufficiently permanent if it remains on the article or on its container unit until it reaches the ultimate purchaser.  When the imported article is combined with the U.S. article after importation, the imported article alone should indicate the origin of the country. "Bottle Made In England."  Name of the country of origin appears after "Made In___" or "Product Of___" or "Produce Of ____"  Repacking after importation should not obscure the country of origin marking.

9. 9 Articles Not Properly Marked  Properly marked within 30 days under U.S. Customs supervision  Re-exported  Destroyed  Marking duty equal to 10% of the customs value, when first 3 options are unavailable

10. 10 Articles for which Country of Origin Marking Not Required  Outermost containers in which such an article reaches the ultimate buyer must be marked with the English name of the country origin.  A list of articles whose country-of-origin markings not required

11. 11 Exceptions to Marking Requirement  Articles which are excepted from marking, but the outermost containers must be marked I.Articles that cannot be marked II.Articles that cannot be marked without injury III.Articles that cannot be marked with high expenses economically prohibitive IV.Articles for which the marking of the containers will reasonably indicate the country of origin V.Crude substances

12. 12 Exceptions to Marking Requirement  Articles which are excepted from marking, but the outermost containers must be marked (continued) vi.Articles produced more than 20 years: Antiques vii.Articles entered or withdrawn from warehouse for immediate exportation

13. 13 Exceptions to Marking Requirement  Both articles and outermost containers excepted from marking I.An article imported for use by the importer II.An article which is to be processed by the importer for his account III.An article whose origin of the country must be known to the ultimate purchaser such as an article in the contract between the U.S. ultimate purchaser and overseas supplier. IV.Products of American fisheries that are free of duty V.Products of the U.S. possessions

14. 14 Exceptions to Marking Requirement  Both articles and outermost containers excepted from marking (continued) vi. Products of the United States exported and returned vii. Articles valued at not more than $200 (or $100 for bona fide gifts) that are passed without a customs entry

15. 15 Special Marking Requirements  One of four special methods:  Die-stamping  Cast-in-mold lettering  Etching (acid or electrolytic)  Engraving

16. 16 Special Marking Requirements  Articles of Special Marking  Iron, steel pipe and pipe fittings  Manhole rings, frames, or covers  Knives, clippers and shears  Compressed gas cylinders  Safety razors  Surgical instruments  Scientific and laboratory instruments  Pliers, Pincers  Vacuum containers

17. 17 Country-of-Origin and Additional Markings Required  Watch Cases and Clock Cases: To be marked on the inside or out­side of the back cover I.the name of the country of manufacture II.the name of the manufacturer or purchaser.

18. 18 Country-of-Origin and Additional Markings Required  Watch Movements and Clock Movements : To be marked on the most visible part of the front or back plate I.the name of the country of manufacture II.the name of the manufacturer or purchaser III.the number of jewels, if any. The country of origin of watches to be the country of manufacture of the watch movement. The name of the country shall appear either on the outside back cover or on the face of the dial.

19. 19 Country-of-Origin and Additional Markings Required  Textile: Textile Fiber Products Identification Act. I.The generic names and percentages by weight of the constituent fibers of 5 percent or more in order of predominance by weight II.The name of the manufacturer or registered identification number (RN) of a person marketing the textile fiber product issued by Federal Trade Commission. III.The name of the country where processed or manufactured.

20. 20 Country-of-Origin and Additional Markings Required  Wool : The Wool Products Labeling Act I.The percentage of total fiber weight of wool, recycled wool, and each fiber other than wool if five percent or more II.The maximum percent of total weight of wool product, non-fibrous loading, fillings or adulterating matter. III.The name of manufacturer or importer or his registered identification (RN) number issued by the Federal Trade Commission. The Wool Products Labeling Act applies to products made in the United States as well as to imported products.

21. 21 Country-of-Origin and Additional Markings Required  Fur : The Fur Products Labeling Act. I.The name of the manufacturer or the importer or his registered identification number (RN) with the Federal Trade Commission. II.The names of the animals. III.If the fur product contains used or damaged fur. IV.If the fur products is bleached, dyed or artificially colored.

22. 22 Country-of-Origin and Additional Markings Required  Fur: The Fur Products Labeling Act (continued) v.If the fur product is composed in whole or in substantial part of paws, tails, bellies or waste fur. vi.The name of the country of origin of any imported furs contained in a fur product. vii.The name of the country where it was processed or manufactured. The Fur Products Labeling Act applies to furs and fur products made in the United States as well as to imported furs and fur products.

23. 23 Marking of False Impression  Sections 42 and 43 of the Trade Mark Act of 1964.  Any imported article of foreign origin which bears a name or mark calculated to induce the public to believe that it was manufactured in the United States or in any other foreign country other than the country where it was actually manufactured shall not be permitted to enter the United States.

24. 24 Marking of False Impression  An article with a misleading marking is subject to  Seizure and forfeiture  To be reexported or destroyed  Customs may also permit the prohibited marking of the article to be removed or obliterated, or the article and the container to be properly marked

25. 25 Marking of False Impression  In case the words "United States" or "U.S.A." or any city or locality in the United States appeared on an imported article of foreign origin, the country of origin must be shown very next to that name in the same or bigger size  Deliberate removal, obliteration, covering or altering of required country of origin markings after importation is a federal crime