CLA-2 RR:CR:TE 960803 GGD
Michael J. Laska
Mercury Luggage Manufacturing
4843 Victor Street
Jacksonville, Florida 32207
RE: Country of Origin Determinations for Backpacks and Duffel Bag; 19 CFR 102.21(c)(4); Most Important Assembly or
Manufacturing Process
Dear Mr. Laska:
This is in response to your letter dated June 18, 1997,
requesting country of origin determinations for three backpacks
and one duffel bag which have been, and will continue to be,
imported into the United States on an ongoing basis on or after
July 1, 1996. Samples were submitted for examination with the
request.
FACTS:
The four articles at issue are three styles of backpacks -
identified as styles DH-1010, DH-7722, and DH-4403 - and one
style of duffel bag - style 8331-ASST. The merchandise is
composed of polyester material, buckles, zippers, webbing, and
embroidery, all of which are sourced in Taiwan. In addition to
these materials, style DH-7722 has a bottom panel and a small
amount of trim that are composed of suede (also sourced in
Taiwan). The backpacks and duffel bag are all classifiable as
travel bags in subheading 4202.92.30, HTSUSA. "Multiple
Declarations" prepared by the Taiwanese manufacturer state that
the manufacturing operations are as follows:
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BACKPACK STYLE NUMBER DH-1010
TAIWAN
- material is sourced (100 percent polyester fabric,
buckles, zippers, webbing, and embroidery;
- fabric is cut into component pieces;
- first component: front panel (including pockets with
embroidered "Duck Head" logo) and zipper are sewn together;
- second component: back panel - including shoulder straps
with embroidered "Duck Head" logo, webbing, and buckle - is
sewn together;
- third component: bottom panel with gussets and zipper are
sewn together.
CHINA
- front panel, back panel, and bottom panel with gussets are
sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.
BACKPACK STYLE NUMBER DH-7722
TAIWAN
- material is sourced (100 percent polyester fabric,
buckles, zippers, webbing, embroidery, and suede);
- fabric is cut into component pieces;
- first component: front panel, including gussets and
pockets with embroidered "Duck Head" logo, and zipper are
sewn together;
- second component: back panel, including shoulder straps
with embroidered "Duck Head" logo, webbing, and buckle are
sewn together;
- third component: bottom panel is sewn.
CHINA
- front panel, back panel, and bottom panel are sewn
together;
- loose threads are cut;
- articles are packed into shipping cartons.
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BACKPACK STYLE NUMBER DH-4403
TAIWAN
- material is sourced (100 percent polyester fabric,
buckles, zippers, webbing, and embroidery;
- fabric is cut into component pieces;
- first component: body panel, including front panel (with
pockets), back panel (with shoulder straps and flap with
embroidered "Duck Head" logo), zipper, webbing, and buckle
are sewn together;
- second component: bottom panel is sewn.
CHINA
- body panel and bottom panel are sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.
DUFFEL BAG STYLE NUMBER 8331-ASST
TAIWAN
- material is sourced (100 percent polyester fabric,
buckles, zippers, webbing, and woven label);
- fabric is cut into component pieces;
- first component: body panel (including front panel with
pockets, back panel, and bottom panel) with zippers,
webbing, and woven label are sewn together;
- second component: gussets, with shoulder strap, buckle,
and webbing are sewn together;
CHINA
- body panel and gussets are sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.
ISSUE:
What is the country of origin of the merchandise?
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LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act provides
new rules of origin for textiles and apparel entered, or
withdrawn from warehouse, for consumption, on or after July 1,
1996. On September 5, 1995, Customs published Section 102.21,
Customs Regulations, in the Federal Register, implementing
Section 334 (60 FR 46188). Thus, effective July 1, 1996, the
country of origin of a textile or apparel product shall be
determined by sequential application of the general rules set
forth in paragraphs (c)(1) through (5) of section 102.21.
Paragraph (c)(1) states that "The country of origin of a
textile or apparel product is the single country, territory, or
insular possession in which the good was wholly obtained or
produced." Since none of the merchandise is wholly obtained or
produced in a single country, territory or insular possession,
paragraph (c)(1) is not applicable.
Paragraph (c)(2) states that "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."
Paragraph (e) states that "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:"
4202.92.15-4202.92.30.....A change to subheading 4202.92.15
through 4202.92.30 from any other heading, provided that the
change is the result of the good being wholly assembled in a
single country, territory, or insular possession.
The three styles of backpacks are classified in subheading
4202.92.3020, and the duffel bag is classified in subheading
4202.92.3030, HTSUSA. Since none of the merchandise is wholly
assembled in a single country, however, the terms of the tariff
shift are not met.
Paragraph (c)(3) states that "Where the country of origin of
a textile or apparel product cannot be determined under paragraph
(c)(1) or (2) of this section:
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(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, 5811, 6213,
6214, 6301 through 6306, and 6308, and subheadings
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.
Since the merchandise is neither knit to shape, nor wholly
assembled in a single country, section 102.21(c)(3) is not
applicable.
Section 102.21(c)(4) states that "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."
With respect to backpack style numbers DH-1010, DH-7722, and
DH-4403, the most important assembly process occurs in Taiwan.
There, for style DH-1010, the front panel (including pockets with
embroidery) and the zipper are sewn together, the back panel
(including shoulder straps with embroidery, webbing and buckle)
is sewn together, and the bottom panel with gussets and zipper
are sewn together. For style DH-7722, Taiwan is where the front
panel, including gussets and pockets with embroidery and the
zipper are sewn together; the back panel (including shoulder
straps with embroidery, webbing, and buckle) is sewn together;
and where the bottom panel is sewn. Taiwan is where, for style
DH-4403, the body panel - including the front panel (with
pockets) and the back panel (with shoulder straps and flap with
embroidery, zipper, webbing, and buckle) is sewn together, and
where the bottom panel is sewn.
In the case of duffel bag style number 8331-ASST, the most
important assembly process also occurs in Taiwan, where the body
panel (including front panel with pockets, the back panel, and
the bottom panel) with zippers, webbing, and woven label are sewn
together; and where the gussets with shoulder strap, buckle, and
webbing are sewn together.
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HOLDING:
The country of origin of backpack style numbers DH-1010, DH-7722, and DH-4403, and of duffel bag style number 8331-ASST, is
Taiwan.
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 19 CFR
177.9(b)(1), which states that each ruling letter is issued on
the assumption that all of the information furnished and
incorporated 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. A change in the facts previously furnished may
affect the determination of country of origin. Thus, if there is
any change in the facts provided to Customs, it is recommended
that a new ruling request be submitted in accordance with 19 CFR
177.2.
Sincerely,
John Durant, Director
Commercial Rulings Division