CLA-2-RR:NC:3:341 D81322
Ms Barbara Y. Wierbicki
Serko & simon LLP
One World Trade Center Suite 3371
New York, N.Y. 10048
RE: Classification and country of origin determination for
backpacks; 19 CFR 102.21(c)(4)
Dear Ms. Wierbicki:
This is in reply to your letters dated June 23 and August
7, 1998 requesting a classification and country of origin
determination for a nylon backpack imported into the United
States. The request is on behalf of Accessory Network Group.
FACTS:
The subject merchandise consists of an unidentified style
of a backpack manufactured of man-made textile materials and
suede leather. The backpack is approximately 15" in height, 11"
in width and 5.5" deep. The front, back, and two sides are of
polyester fabric and the bottom panel is of a suede leather. The
front panel has a zippered pouch which measures 10.5" wide, 8"
high and 1.5 inches deep. The pouch is trimmed with a small panel
of suede leather. There is the male half of a slider buckle with
woven textile tab sewn to the front in the same assembly process
that the pouch is affixed to the bag. There is a zippered pocket
on the front of the pouch approximately 9" by 5.5". The bag has
a top flap of polyester fabric and leather trim. The flap is
fabricated with zippered pocket which is trimmed with an
unidentified fabric decorative tape. The flap has the female half
of a side release buckle sewn on by means of a woven textile tab.
The slider buckle is used to secure the flap. The top of the bag
has a drawstring closure with plastic cord lock enclosed in a
gathered textile top. The rear of the backpack has standard
double padded shoulder straps, with woven polypropylene (PP)
straps and plastic three bar slides affixed, sewn to the top and
bottom. There is a woven PP handle affixed to the top rear at a
point where the flap joins the bag body. A matching woven PP
tape covers the seam where the top handle and the shoulder straps
are sewn under the top flap. All interior edges are finished
with Polyvinyl Chloride (PVC) edging.
You have indicated that polyester fabric is sourced in
Taiwan and the balance of the components are purchased in China.
Components such as nylon zippers, plastic buckles, woven PP
straps and tapes, foam and PVC binding will be sourced in
Indonesia. The suede material will be sourced in China.
The manufacturing operations for the backpacks are as
follows:
China:
1. The fabric piece goods and suede leather are cut to shape
and notched forming the basic bag body components.
2. The front zippered pouch with suede trimmed zipper pocket is fabricated and affixed to the front bag
panel.
3. The flap with zipper pocket is fabricated by sewing together a backing of rayon satin fabric, middle
layer of paperboard stiffener, an inner lining of PVC
sheeting and upper and lower panels of the polyester
material. The upper and lower polyester panels
are finished with nylon coil zipper tapes and a
zipper pull is affixed. The female portion of the
slider lock is affixed to the flap by means of a
length of the woven PP tape and a small leather
patch is used to reinforce the stress point and ornament
the flap.
4. The double foam padded shoulder straps are fabricated
from the polyester fabric, PP straps and adjustable buckles. The top woven PP handle is cut to
length. The finished shoulder straps and handle are affixed
to the bottom of the flap in a single process
wherein a length of woven fabric overlay is sewn
across the top of the flap.
5. The bottom suede panel is fabricated by joining two
sewing together at the middle and finishing with a nylon
lining material.
6. Create drawstring top by folding and sewing the top nylon
material. Fabricate the drawstring by assembling the
cord lock to the cord and knotting the ends. Insert the
finished cord within the top.
Taiwan:
1. Sew the finished back panel to the finished leather
bottom.
2. Sew the finished front panel to the bottom panel.
3. Sew the side panels to bottom panel.
4. Sew four vertical side seams joining each panel.
5. Affix the finished drawstring section to the top.
6. Sew the finished flap with straps and handle to the back.
ISSUE:
What are the classification and country of origin of the
subject merchandise?
CLASSIFICATION:
The applicable subheading for the nylon backpack will be
4202.92.3020, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), which provides for travel, sport and similar
bags with outer surface of textile materials, of man-made fibers,
backpacks . The rate of duty will be 19 percent ad valorem.
Goods classified within tariff number 4202.92.3020, HTSUSA,
fall within textile category designation 670. The designated
textile and apparel categories may be subdivided into parts. If
so, visa and quota requirements applicable to the subject
merchandise may be affected. Part categories are the result of
international bilateral agreements which are subject to frequent
renegotiations and changes. To obtain the most current
information available, we suggest that you check, close to the
time of shipment, the Status Report on Current Import Quotas
(Restraint Levels), an internal issuance of the U.S. Customs
Service, which is available for inspection at your local Customs
office.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act (codified
at 19 U.S.C. 3592) provides new rules of origin for textiles and
apparel entered, or withdrawn from warehouse, for consumption, on
and 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." As the subject merchandise is not wholly obtained or
produced in a single country, territory or insular possession,
paragraph (c)(1) of Section 102.21 is inapplicable.
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 of
the foreign materials 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) in pertinent part 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":
HTSUS Tariff shift and/or other requirements
4202.92.15-4202.92.30 A change 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 or insular possession.
The backpacks are not wholly assembled in a single country
or insular possession. Accordingly, as the backpacks do not meet
the tariff shift, Section 102.21(c)(2) is inapplicable.
Section 102.21(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":
(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.
As the subject merchandise is neither knit, nor wholly
assembled in a single country, Section 102.21 (c)(3) is
inapplicable.
Section 102.21 (c)(4) states, "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 the case of the subject merchandise, the unassembled
subassemblies, fabricated in China, are an otherwise complete
backpack and constitute(s) the most important assembly or
manufacturing process(es). Customs decision 960803, April 14,
1998, wherein a substantially similar process is described, is
noted. Accordingly, the country of origin of the backpacks is
China.
HOLDING:
The country of origin of the backpack is China. Based upon
international textile trade agreements products of China are
subject to quota and the requirement of a visa.
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 sections states that a ruling letter, either
directly, by reference, or by implication, is accurate and
complete in every material respect.
This ruling is being issued under the provisions of Part 177
of the Customs Regulations (19 CFR 177). 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.
A copy of the ruling or the control number indicated above
should be provided with the entry documents filed at the time
this merchandise is imported. If you have any questions
regarding the ruling, contact National Import Specialist Kevin
Gorman at 212-466-5893.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division