CLA-RR:TC:TE 960305 CAB
Michael O'Neill
O'Neill & Whitaker, Inc.
1809 Baltimore Avenue
Kansas City, MO 64108
RE: Country of origin of a Portfolio; Section 102.21(c)(4)
Dear Mr. O'Neill:
This is in response to your inquiry of January 20, 1997,
requesting a country of origin ruling for a certain binder, on
behalf of Stuart Hall Company, Inc. A sample was submitted and
will be returned under separate cover.
FACTS:
The article at issue which is a zippered binder is referred
to as Product No. G68200. The binder is constructed of 420
denier crinkle nylon woven fabric on the exterior, 210 nylon
woven fabric on the interior, and two pockets located both on the
inside and outside of the binder, polypropylene woven piping
which finishes the edges, plastic foam which is used as padding,
and a textile fabric covered paperboard that is used as
reinforcement. The sample measures approximately 13« inches x
11« inches. No paper inserts are included.
The exterior crinkle nylon fabric is woven in Taiwan and
transported to China in uncut bolts of material. In China, the
bolts of fabric are cut into the exterior cover component. All
of the other textile components, the paperboard, and plastic foam
are sourced in China and are cut, fashioned, glued, and sewn in
China to produce the finished product. You state that the 420
crinkle nylon fabric from Taiwan comprises approximately 32
percent of the finished binder while the remainder of the textile
fabric from China makes up approximately 68 percent of the
finished article. While we disagree with the estimations due to
your inclusion of the PVC foam, frame and other non textile
components in the weights for the textile components, we do
concur that the textile material and other non-textile goods from
China predominate in weight when examining the binder in its
entirety.
ISSUE:
What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
Pursuant to Section 334 of the Uruguay Round Agreements
Act (codified at 19 USC Section 3592), new rules of origin were
effective for textile products entered, or withdrawn from
warehouse, for consumption on or after July 1, 1996. These rules
were published in the Federal Register, 60 Fed. Reg. 46188
(September 5, 1995). Section 102.21, Customs Regulations
(19 CFR Section 102.21), sets forth the general rules to
determine country of origin. Thus, the country of origin of a
textile product is determined by a hierarchy of rules set forth
in paragraphs (c)(1) through (c)(5) of Section 102.21.
Section 102.21(c)(1) sets forth the general rule for
determining the country of origin of a textile or apparel product
in which the good was wholly obtained or produced. As the
subject article has not been wholly obtained or produced in a
single country, this section is inapplicable.
Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under Section 102.21(c)(1).
Section 102.21(c)(2) provides, in pertinent part:
Where the country of origin of a textile or apparel
product cannot be determined under paragraph (c)(1) of
this section, the country of origin of the good is the
single country, territory, or insular possession in
which each foreign material incorporated in that good
underwent an applicable change in tariff
classification, and/or met any other requirement,
specified for the good in paragraph (e) of this
section.
In order to determine the proper country of origin of the
subject binder, Customs must first address the proper tariff
classification of the article. The binder is potentially
classifiable under three distinct headings, Heading 4202, of the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), Heading 3926, HTSUSA, and Heading 6307, HTSUSA.
Heading 4202, HTSUSA, provides for, among other articles,
trunks, suitcases, vanity cases, attache cases, briefcases,
school satchels and similar containers. Customs has determined
in prior cases that articles such as portfolio diaries,
organizers, agendas, or planners without paper inserts are
generally excluded from Heading 4202, HTSUSA, as they are not
used in a manner similar to, nor do they possess physical
characteristics of articles of that heading. Consequently, the
subject binder is not properly classifiable under Heading 4202,
HTSUSA.
Heading 3926, HTSUSA, provides for other articles of
plastic, while Heading 6307, HTSUSA, provides for other made up
textile articles. Because the binder at issue is composed of
both textile materials and plastic, a question remains as to
whether it is classifiable as a textile article under Heading
6307, HTSUSA, or as an article of plastic under Heading 3926,
HTSUSA. Although no breakdown of the relative values have been
provided concerning the textile portion and the plastic portion
of the subject binder, given the fact that the textile fabric
covers a predominate portion of the finished binder including the
exterior portion and the textile portion provides the visual
appeal of the binder, it is Customs opinion that the essential
character of the binder is imparted by the textile part of the
binder. Consequently, the subject binder is classifiable based
on its textile fabric component and is classifiable under Heading
6307, HTSUSA. The binder is specifically classifiable in
subheading 6307.90.9989.
Section 102.21(e) provides, in pertinent part:
Specific rules by tariff classification. The following
rules shall apply for purposes of determining the country of
origin of a textile or apparel product under paragraph
(c)(2) of this section:
The country of origin of a good classifiable under
subheading 6307.90 is the country, territory, or insular
possession in which the fabric comprising the good was
formed by a fabric-making process.
Section 102.21(c)(2) is not applicable to the instant
binder since it is comprised of fabrics formed in both Taiwan and
China.
Section 102.21(c)(3) provides for instances when the country
of origin determination cannot be made pursuant to paragraphs (c)
(1) or (2) of Section 102.21. Section 102.21(c)(3) states the
following, in pertinent part:
(i) If the good was knit to shape, the country of
origin of the good is the single country, territory, or
insular possession in which the good was knit; or
(ii) Except for goods of heading 5609, 5807, 6213,
6214, 6301 through 6306, and 6308, and subheading
6209.20.5040, 6307.10, 6307.90, and 9404.90, if the
good was not knit to shape and the good was wholly
assembled in a single country, territory, or insular
possession, the country of origin of the good is the
country, territory, or insular possession in which the
good was wholly assembled.
Section 102.21(c)(3) is not applicable in this case since
the subject merchandise is not knit to shape goods and subheading
6307.90, the applicable tariff classification subheading, is
specifically excluded from the application of Section
102.21(c)(3) pursuant to provision (ii).
Section 102.21(c)(4) provides the first multi-country rule.
Section 102.21(c)(4), states the following:
Where the country of origin of a textile or apparel product
cannot be determined under paragraph (c)(1), (2) or (3) of
this section, the country of origin of the good is the
single
country, territory, or insular possession in which the most
important assembly or manufacturing process occurred.
In this instance the subject binder is comprised of a
textile fabric woven in Taiwan and a textile fabric woven in
China along with other non-textile components from China.
Customs believes that the manufacturing of the fabric is the most
important manufacturing process in the production of the binder.
In this case the textile fabrics comprising the binder are from
both China and Taiwan, however, the manufacturing of the fabric
in Taiwan is the most important processing operation. It is the
fabric woven in Taiwan that predominately comprises the outer
covering of the binder and also gives the binder its aesthetic
appeal. Consequently, Taiwan is the country of origin of the
subject binder in accordance with Section 102.21(c)(4).
HOLDING:
The country of origin of the subject binder is Taiwan in
accordance with Section 102.21(c)(4).
The marking statute (19 USC 1304) requires articles of
foreign origin imported in the United States to be marked to
indicate the name of the country of origin of the article. In
the case of the subject binder, "Made in Taiwan", "Product of
Taiwan", or "Taiwan" would be appropriate markings.
The holding set forth above applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in section 19 CFR
177.9(b)(1). This section states that the ruling letter is
issued on the assumption that all of the information furnished in
the ruling letter, either directly, by reference, or by
implication, is accurate and complete in every material respect.
Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 CFR
177.9(b)(1), the ruling will be subject to modification or
revocation. In the event there is a change in the facts
previously furnished, this may affect the
determination of country of origin. Accordingly, if there is any
change in the facts submitted to Customs, it is recommended that
a new ruling request be submitted in accordance with 19 CFR
177.2.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division