News Under U.S. Federal Law (Section 304 of the Tariff Act of 1980, as amended), every article of foreign origin imported into the U.S. shall be marked in a conspicious place as legibly, 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 the article.
In this respect, Customs Service (Customs) has ruled in numerous cases that the country of origin of a watch strap must be separately marked when its country of origin differs from the country of origin of the watch. In these rulings, Customs had reasoned that the attachment of the watch strap to the watch did not effect a substantial transformation of the watch strap, and that after attachment, the strap maintained its separate identity. However, in May 1997, a U.S. company proposed to Customs to modify these rulings, so as to state that a watch strap attached to a watch that is produced in the country of assembly becomes a product of that country. Accordingly, Customs has reconsidered its position, and published, on November 19, 1997, a notice of a proposal to modify prior Customs rulings pertaining to the country of origin of watch straps.
Based on the comments received in response to this notice, on January 21, 1998, Customs announced to interested parties that it was modifying rulings relating to the country of origin of watch straps. To summarize the new concept, it can be stated that, when attached in a country to a watch produced in that same country, watch straps lose their identity, and become an integral part of the finished watch. Under these circumstances, the watch straps undergo a substantial transformation, as a result of a change in name, use and character. Therefore, watch straps attached to their watches in the country in which the watches are produced, do not have to be marked. For example, a watch strap, that has not been produced in Switzerland, is attached, in Switzerland, to a Swiss watch; the indication of origin "Swiss made" may appear on the dial, but the watch strap is not required to be marked.
These rulings are intended by Customs to be uniformely applied in the territory of the United States. The FH supports these new rulings, for they meet the Swiss watch industry's opinion that the marking of origin should not be compulsory, and that numerous markings on a product may cause confusion with consumers. For further information, please contact the FH's legal department.
March 12, 1998