Classification and Marking of Watches

Earlier this week I found myself describing to my summer law clerk the difference between specific duty rates, such as a “per piece” rate like $0.40 cents per piece, and “ad valorem” duty rates, i.e. a percentage rate of duty, such as 6% of the invoiced value of the merchandise.

When it came to explaining that there are certain imports that are a combination of the two types of duty, I turned to watches whose classifications within HTSUS Ch. 91 can be made up of a combination of duty rates.

Watches are unique in the tariff for not only this reason but because they are subject to all kinds of different types of additional rules that other commodities are not subject to.

Take the marking requirements for a watch for example.

The “marking statute,” codified in 19 USC 1304, mandates the marking of every article of foreign origin of its country of origin.

Under Customs interpretation of the Marking Statute, the country of origin of a watch is based upon the country of origin of the movement of the watch, irrespective of whether the case, band, or other parts were produced in another country.

HTSUS Additional U.S. Note 4 to Chapter 91 of the tariff, provides for special marking requirements for watches as described in bold below.

There is an exception to these special marking requirements however, for those watches with movements with “opto-electronic displays” and cases designed for use with “opto-electronic movements.”

As liquid crystal display (LCD) and light emitting diode (LED) display watches are categorized as watches with an opto-electronic display, they are excepted from these special marking requirements.

Watch Movement: Must be marked on one (1) 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 Case: Must be marked on the inside or outside of the back to show the name of the country of manufacture and the name of the manufacturer or purchaser

For more information on the classification and marking of watches, check out US Customs updated publication entitled “Classification and Marking of Watches and Clocks.”

Questions/comments? Post below or email me at clark.deanna@gmail.com