Classification and Marking of Watches and Clocks

Published CBP guidance; operative status and applicability must be assessed from the retained publisher edition.

What Every Member of the
Trade Community Should Know About:
Classification and
Marking of Watches
and Clocks

AN INFORMED COMPLIANCE PUBLICATION
FEBRUARY 2012

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Classification and Marking of Watches and Clocks
February 2012

NOTICE:
This publication is intended to provide guidance and information to the trade community.
It reflects the position on or interpretation of the applicable laws or regulations by U.S.
Customs and Border Protection (CBP) as of the date of publication, which is shown on
the front cover. It does not in any way replace or supersede those laws or regulations.
Only the latest official version of the laws or regulations is authoritative.

Publication History

First Published: May 2000
Revised January 2004
Revised June 2005
Reviewed with No Changes March 2006
Reviewed with No Changes February 2008
Reviewed with No Changes March 2009
Reviewed with No Changes February 2010
Reviewed with No Changes January 2011
Reviewed with No Changes February 2012

PRINTING NOTE:
This publication was designed for electronic distribution via the CBP website
(http://www.cbp.gov/) and is being distributed in a variety of formats. It was originally set
up in Microsoft Word97
®
. Pagination and margins in downloaded versions may vary
depending upon which word processor or printer you use. If you wish to maintain the
original settings, you may wish to download the .pdf version, which can then be printed
using the freely available Adobe Acrobat Reader
®
.

Classification and Marking of Watches and Clocks
February 2012

PREFACE

On December 8, 1993, Title VI of the North American Free Trade Agreement Implementation
Act (Pub. L. 103-182, 107 Stat. 2057), also known as the Customs Modernization or “Mod” Act,
became effective. These provisions amended many sections of the Tariff Act of 1930 and
related laws.

Two new concepts that emerge from the Mod Act are “informed compliance” and “shared
responsibility,” which are premised on the idea that in order to maximize voluntary compliance
with laws and regulations of U.S. Customs and Border Protection, the trade community needs to
be clearly and completely informed of its legal obligations. Accordingly, the Mod Act imposes a
greater obligation on CBP to provide the public with improved information concerning the trade
community's rights and responsibilities under customs regulations and related laws. In addition,
both the trade and U.S. Customs and Border Protection share responsibility for carrying out
these requirements. For example, under Section 484 of the Tariff Act, as amended (19 U.S.C.
1484), the importer of record is responsible for using reasonable care to enter, classify and
determine the value of imported merchandise and to provide any other information necessary to
enable U.S. Customs and Border Protection to properly assess duties, collect accurate
statistics, and determine whether other applicable legal requirements, if any, have been met.
CBP is then responsible for fixing the final classification and value of the merchandise. An
importer of record’s failure to exercise reasonable care could delay release of the merchandise
and, in some cases, could result in the imposition of penalties.

Regulations and Rulings (RR) of the Office of International Trade has been given a major role in
meeting the informed compliance responsibilities of U.S. Customs and Border Protection. In
order to provide information to the public, CBP has issued a series of informed compliance
publications on new or revised requirements, regulations or procedures, and a variety of
classification and valuation issues.

This publication, prepared by the National Commodity Specialist Division of Regulations and
Rulings is entitled "Classification and Marking of Watches and Clocks”. It provides guidance
regarding the classification and marking of these items. We sincerely hope that this material,
together with seminars and increased access to rulings of U.S. Customs and Border Protection,
will help the trade community to improve voluntary compliance with customs laws and to
understand the relevant administrative processes.

The material in this publication is provided for general information purposes only. Because
many complicated factors can be involved in customs issues, an importer may wish to obtain a
ruling under Regulations of U.S. Customs and Border Protection, 19 C.F.R. Part 177, or to
obtain advice from an expert who specializes in customs matters, for example, a licensed
customs broker, attorney or consultant.

Comments and suggestions are welcomed and should be addressed to U.S. Customs and
Border Protection, Office of International Trade, Executive Director, Regulations and Rulings,
799 9
th
Street N.W. 7
th
floor, Washington, D.C. 20229-1177.

Sandra L. Bell
Executive Director, Regulations and Rulings
Office of International Trade

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CLASSIFICATION OF WATCHES AND CLOCKS..................................... 7
Watches...................................................................................................................... 7
Clocks......................................................................................................................... 7
MARKING.................................................................................................... 8
Section 304 Marking................................................................................................... 8
Special Marking Requirements............................................................................... 10
Methods of Marking................................................................................................. 11
ADDITIONAL INFORMATION................................................................... 13
The Internet................................................................................................................ 13
Customs Regulations................................................................................................. 13
Customs Bulletin........................................................................................................ 13
Importing into the United States................................................................................. 14
Informed Compliance Publications............................................................................. 14
Value Publications...................................................................................................... 15
“Your Comments are Important”................................................................................. 16

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CLASSIFICATION OF WATCHES AND CLOCKS

Watches

Watches are classified in Chapter 91 of the Harmonized Tariff Schedule of the United
States (HTSUS) under headings 9101 and 9102. Heading 9101 covers watches with
cases of precious metal or of metal clad with precious metal. Heading 9102 covers
watches other than those of heading 9101 (watches with cases which are not of
precious metal or of metal clad with precious metal). Headings 9101 and 9102 include
wristwatches and other watches.

Watches are defined in Additional U.S. Note I (a), to Chapter 91, as embracing
timepieces (including timepieces having special features, such as chronographs,
calendar watches and watches designed for use in skin diving) of a kind for wearing or
carrying on the person. Time pieces incorporating a stand, however simple, are not
classified as watches. Common types of watches are wristwatches, pocket watches,
pendant watches (the chains are separately classified), clip-on watches and stop
watches.

The term “watch movement,” as related to mechanical movements, is defined in Note
3 to Chapter 91, HTSUS, as meaning a device regulated by a balance wheel and
hairspring, quartz crystal or any other system capable of determining intervals of time,
with a display or a system to which a mechanical display can be incorporated. Watch
movements cannot exceed 12mm in thickness and 50mm in width, length or diameter.

Clocks

Clocks are classified under headings 9103, 9104, and 9105. Heading 9103 covers
clocks containing watch movements other than clocks of 9104. Heading 9104 covers
instrument panel clocks for vehicles, aircraft, spacecraft or vessels. Heading 9105
covers other clocks, including alarm clocks, wall clocks, and desk clocks.

Clock movements are defined in the HTSUS, in Additional U. S. Note 1 (d) to Chapter
91, as devices regulated by a balance wheel and hairspring, quartz crystal or any other
system capable of determining intervals of time, with a display or a system to which a
mechanical display can be incorporated. Clock movements must exceed either 12mm in
thickness or 50mm in width, length or diameter, or both. If a movement in a clock does
not exceed either of these dimensions, 12mm in thickness or 50mm in width, length or
diameter, the clock is considered a clock with a watch movement, classifiable in
heading 9103. These types of clocks are commonly referred to as mini-clocks. It should
also be noted that in addition to watches and clocks, certain timers and time switches
are classified in Chapter 91, HTSUS.

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MARKING

Watches and clocks are required to be marked in accordance with two separate
marking requirements. One is the country of origin marking requirements of Section 304
of the Tariff Act of 1930, as amended (19 U.S.C. 1304). The other is the special marking
requirements of Chapter 91, Additional Note 4, HTSUS ("Note 4"). Sections 134.43 (b)
and 11.9, Customs Regulations, provide that clocks and watches must be marked in
accordance with Chapter 91, Note 4, HTSUS. As discussed below, the requirements
are complex and quite specific, especially those relating to the special marking
requirements of Chapter 91.

Section 304 Marking

Under section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), every article of
foreign origin entering the United States must be legibly marked with the English name
of the country of origin unless there is an exception from marking provided for in the
law. The purpose of marking is to inform the ultimate purchaser in the United States of
the country in which the imported article was made.

Marking must be conspicuous, legible, and permanent. As a general rule, 19 USC 1304
marking requirements are best met by marking worked into the articles at the time of
manufacture. For example, it is suggested that the country of origin of metal articles be
die-sunk, molded in or etched. Although 19 USC 1304 permits pressure sensitive labels,
paper stickers or hang tags, Customs prefers a more permanent form of country of
origin marking on imported articles.

• Under 19 U.S.C.1304, as interpreted by Customs, the country of origin of the
movement of the watch or clock determines the country of origin of the watch or
clock. Although the addition of the hands, dial, or case adds definition to the timepiece,
they do not substantially change the character or use of the watch or clock movement,
which is the essence of the watch or clock. Accordingly, a watch with one country of
origin for the movement, another for the case, and another for the battery, is
considered, for purposes of 19 USC 1304, to be a product of the country in which the
movement was produced. The movement's country of origin should appear
conspicuously and legibly on the dial face or on the outside of the back of the watch or
clock.

Watchbands (including watch straps) assembled to a watch in the same country where
the movement is assembled are substantially transformed and become a product of
that country. HRL 560471 dated January 5, 1997 is noted. In such a case, assuming
that the country of origin marking of the watch is otherwise conspicuous, legible and
permanent, the band is not required to be marked. In the situation where the watch and
watchband are from different countries, and they are assembled together in another
country, an importer should consider requesting a ruling on the country of origin of the
watch and the watchband.

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• If a watch or clock is sold to the ultimate purchaser
in a sealed package, and if the
country of origin is not clearly visible on the watch or clock through the packaging, the
container must also be marked to indicate the country of origin of the watch or clock.

Acceptable markings for watches and clocks consist of just the name of the country of
origin or the name of the country of origin preceded by “Made in,” “Product of” or similar
words. Also acceptable is the use of the word “Movement” or an abbreviation such as
“Mov't” or “Movt” along with the name of the country. Examples of acceptable markings
for a watch or clock if the movement is assembled in Hong Kong would be: “Hong
Kong,” “Hong Kong Movement,” “Movement Hong Kong,” or “MOVT Hong Kong.” The
wording “Swiss Made” is another example of an acceptable marking if the country of
origin is Switzerland.

Where the parts of a movement are from one country, and the parts are assembled into
a movement in a second country (the country of origin), the marking on the watch and
clock may identify the country where the parts of the movement are made (in addition to
the country of origin of the watch or clock), as long as the marking is in compliance with
the requirements of 19 CFR 134.46. 19 CFR 134.46 provides that when the name of a
place other than the country of origin appears on an imported article or its container,
and the non-origin reference may mislead or deceive the ultimate purchaser as to the
actual origin of the article, there shall appear, legibly and permanently, in close
proximity to such place name, and in at least a comparable size, the name of the
country of origin preceded by “Made in,” “Product of” or words of similar meaning. As an
example, if the parts of the movement are made in Switzerland and the movement is
assembled in China, markings such as “Swiss Parts/Made in China,” “Swiss
Parts/Movement China,” “Swiss Parts/China Movement” are acceptable.

Customs has allowed the phrase “Designed In” to be used in conjunction with country of
origin information, for 19 USC 1304 marking purposes. The marking “Designed in USA,
Made in (Country of Origin),” has been found to be an acceptable marking provided the
words “Made In (Country of Origin)” appear in close proximity and in the same size
lettering as the words “Designed in USA.” See
HRL 560202 dated December 20, 1996.

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Special Marking Requirements

Chapter 91, Additional U.S. Note 4, HTSUS, sets forth the special marking requirements
for watches and clocks. Movements with opto-electronic displays only and cases
designed for use with opto-electronic movements, whether entered as separate articles
or as components of assembled watches or clocks, are excepted from the special
marking requirements of Additional U.S. Note 4. Opto-electronic displays refer to two
specific types of watch or clock displays. In order to be considered a watch or clock with
an opto-electronic display, the article must have a liquid crystal display (LCD) or a light
emitting diode display (LED). Watches and clocks with mechanical displays, also
referred to as analog displays are subject to the special marking requirements of
Chapter 91. A mechanical or analog display has a dial, which may have numbers
representing the hours of the day on it, and often has an hour hand, a minute hand, and
a second (sweep) hand.

Additional U.S. Note 4 provides that the following markings are required for watches
and clocks:

• WATCH MOVEMENTS: Must be marked on one or more of the bridges or top plates
to show the name of the country of manufacture; the name of the manufacturer or
purchaser; and in words, the number of jewels, if any, serving a mechanical purpose as
frictional bearings.

• WATCH CASES: Must be marked on the inside or outside of the back to show the
name of the country of manufacture and the name of manufacturer or purchaser.

• CLOCK MOVEMENTS: Must be marked on the most visible part of the front or back
plate to show the name of the country of manufacture; the name of the manufacturer or
purchaser, and the number of jewels, if any.

• CLOCK CASES: Must be marked on the most visible part of the outside of the back to
show the name of the country of manufacture.
A clock case must be marked in accordance with the special marking requirements,
even though the clock contains a watch movement, and the watch case enclosing the
movement is marked on the inside of the back with the name of the country of
manufacture. HRL 735158 dated December 17, 1993, is noted.

Clock cases embrace inner and outer cases, containers and housings for movements,
together with parts or pieces, such as, but not limited to, rings, feet, posts, bases and
outer frames which serve to complete the clock. Additional U.S. Note 1 (b) to Chapter
91, HTSUS, is noted. Often a clock movement will have an inner case, which
immediately surrounds the movement, and an outer case which surrounds the inner
case and other parts of the clock. The outer cases must be marked in accordance with
the special marking requirements of chapter 91.

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In HRL 560866 dated November 30, 1998, Customs found that the cardboard exterior

which surrounded the parts of a clock and acted as an outer case, was a clock case and
therefore subject to the special marking requirements of Note 4. In another ruling, it was
determined that a ceramic figurine was the clock case for a certain clock and thus, the
clock case had to be marked in accordance with Additional U.S. Note 4 to Chapter 91.
HRL 559934 dated October 23, 1996, is noted.

Customs has held that the special marking requirements of Chapter 91 apply, even
when it is claimed that marking in the required way will cause tarnishing and corroding
of the clock case, or damage the finish of the clock (HRL 559066 dated May 12, 1995,
is noted). However, Note 4 does not require any additional marking indicating the
number of jewels where a movement has no jewels. Accordingly, if a movement has no
jewels, the marking “No (0) Jewels” is not required. See
HRL 560636 dated January 26,
1998.

As noted, certain timers and time switches are also classified in Chapter 91, HTSUS.
Timers which contain clock movements, as defined in Additional U.S. Note l(d), are
subject to the special marking requirements of Chapter 91. HRL 561018 dated June 12,
1998, is noted regarding kitchen timers.

Any movement or case provided for in Chapter 91 of the HTSUS must be marked in
accordance with the special marking requirements whether it is imported separately or
attached to an article provided for in the chapter. The term “purchaser” means the
purchaser in the United States by whom or for whose account the articles are imported.
Section 11.9 (b), Customs Regulations, is noted. As the special marking requirements
of Additional U.S. Notes are Congressionally enacted, Customs has no authority to
grant exceptions. The HTSUS provides that movements or cases provided for in
Chapter 91 shall not be permitted entry unless properly marked as provided in the
special marking requirements.

Methods of Marking

The marking specified by Chapter 91 must be accomplished by use of cutting, die-
sinking, engraving, stamping (including by means of indelible ink) or mold-marking
(either indented or raised). The use of pressure sensitive stickers, paper labels,
hangtags or any other method not specifically mentioned in Additional U. S. Note 4 is
not acceptable.

The methods of marking specified in Chapter 91 have specific meanings:

• Cutting means that the marking must be cut into the metal, plastic or other material
used in the article.

• Die-sinking means stamping with a hard metal die to permanently mark the metal,
plastic or other material.

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• Engraving is to carv
e, cut or etch into the metal, plastic or other material.

• Stamping is a process that is forcefully made and leaves a permanent imprint or
impression. (Stamping includes indelible ink marking.)

• Mold marking is marking that is part of the mold used to make the item. Mold marking
can be either indented or raised.

In summary, watches and clocks must be marked with their country of origin for
purposes of 19 U.S.C. 1304, and in accordance with Part 134 of the Customs
Regulations. Clocks and watches must also be marked in accordance with the special
marking requirements of Additional U.S. Note 4, Chapter 91 of the HTSUS.

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ADDITIONAL INFORMATION

The Internet

The home page of U.S. Customs and Border Protection on the Internet’s World Wide
Web, provides the trade community with current, relevant information regarding CBP
operations and items of special interest. The site posts information -- which includes
proposed regulations, news releases, publications and notices, etc. -- that can be
searched, read on-line, printed or downloaded to your personal computer. The web site
was established as a trade-friendly mechanism to assist the importing and exporting
community. The web site also links to the home pages of many other agencies whose
importing or exporting regulations that U.S. Customs and Border Protection helps to
enforce. The web site also contains a wealth of information of interest to a broader
public than the trade community. For instance, the “Know Before You Go” publication
and traveler awareness campaign is designed to help educate international travelers.

The web address of U.S. Customs and Border Protection is http://www.cbp.gov

Customs Regulations

The current edition of Customs and Border Protection Regulations of the United States
is a loose-leaf, subscription publication available from the Superintendent of
Documents, U.S. Government Printing Office, Washington, DC 20402; telephone (202)
512-1800. A bound edition of Title 19, Code of Federal Regulations is also available for
sale from the same address. All proposed and final regulations are published in the
Federal Register, which is published daily by the Office of the Federal Register, National
Archives and Records Administration, and distributed by the Superintendent of
Documents. Information about on-line access to the Federal Register may be obtained
by calling (202) 512-1530 between 7 a.m. and 5 p.m. Eastern time. These notices are
also published in the weekly Customs Bulletin described below.

Customs Bulletin

The Customs Bulletin and Decisions (“Customs Bulletin”) is a weekly publication that
contains decisions, rulings, regulatory proposals, notices and other information of
interest to the trade community. It also contains decisions issued by the U.S. Court of
International Trade, as well as customs-related decisions of the U.S. Court of Appeals
for the Federal Circuit. Each year, the Government Printing Office publishes bound
volumes of the Customs Bulletin. Subscriptions may be purchased from the
Superintendent of Documents at the address and phone number listed above.

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Importing into the United States

This publication provides an overview of the importing process and contains general
information about import requirements. The current edition of Importing Into the United
States contains much new and revised material brought about pursuant to the Customs
Modernization Act (“Mod Act”). The Mod Act has fundamentally altered the relationship
between importers and U.S. Customs and Border Protection by shifting to the importer
the legal responsibility for declaring the value, classification, and rate of duty applicable
to entered merchandise.

The current edition contains a section entitled "Informed Compliance." A key component
of informed compliance is the shared responsibility between U.S. Customs and Border
Protection and the import community, wherein CBP communicates its requirements to
the importer, and the importer, in turn, uses reasonable care to assure that CBP is
provided accurate and timely data pertaining to his or her importation.

Single copies may be obtained from local offices of U.S. Customs and Border
Protection, or from the Office of Public Affairs, U.S. Customs and Border Protection,
1300 Pennsylvania Avenue NW, Washington, DC 20229. An on-line version is
available at the CBP web site. Importing into the United States is also available for
sale, in single copies or bulk orders, from the Superintendent of Documents by calling
(202) 512-1800, or by mail from the Superintendent of Documents, Government Printing
Office, P.O. Box 371954, Pittsburgh, PA 15250-7054.

Informed Compliance Publications

U.S. Customs and Border Protection has prepared a number of Informed Compliance
publications in the “What Every Member of the Trade Community Should Know
About:...” series. Check the Internet web site http://www.cbp.gov
for current
publications.

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Value Publications

Customs Valuation under the Trade Agreements Act of 1979 is a 96-page book
containing a detailed narrative description of the customs valuation system, the customs
valuation title of the Trade Agreements Act (§402 of the Tariff Act of 1930, as amended
by the Trade Agreements Act of 1979 (19 U.S.C. §1401a)), the Statement of
Administrative Action which was sent to the U.S. Congress in conjunction with the TAA,
regulations (19 C.F.R. §§152.000-152.108) implementing the valuation system (a few
sections of the regulations have been amended subsequent to the publication of the
book) and questions and answers concerning the valuation system.

Customs Valuation Encyclopedia (with updates) is comprised of relevant statutory
provisions, CBP Regulations implementing the statute, portions of the Customs
Valuation Code, judicial precedent, and administrative rulings involving application of
valuation law. A copy may be purchased for a nominal charge from the Superintendent
of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-
7054. This publication is also available on the Internet web site of U.S. Customs and
Border Protection.

The information provided in this publication is for general information
purposes only. Recognizing that many complicated factors may be
involved in customs issues, an importer may wish to obtain a ruling under
CBP Regulations, 19 C.F.R. Part 177, or obtain advice from an expert
(such as a licensed Customs Broker, attorney or consultant) who
specializes in customs matters. Reliance solely on the general
information in this pamphlet may not be considered reasonable care.

Additional information may also be obtained from U.S. Customs and Border Protection
ports of entry. Please consult your telephone directory for an office near you. The
listing will be found under U.S. Government, Department of Homeland Security.

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16

“Your Comments are Important”

The Small Business and Regulatory Enforcement Ombudsman and 10 regional
Fairness Boards were established to receive comments from small businesses about
Federal agency enforcement activities and rate each agency’s responsiveness to small
business. If you wish to comment on the enforcement actions of U.S. Customs and
Border Protection, call 1-888-REG-FAIR (1-888-734-3247).

REPORT SMUGGLING 1-800-BE-ALERT OR 1-888-NO-DROGA

Visit our Internet w
eb site: http://www.cbp.gov