MAR-05 RR:TC:SM 560027 KKV
Ms. Angel L. Cooper
A.N. Deringer, Inc.
173 W. Service Road
Champlain, NY 12919
RE: Request for a ruling regarding the tariff
classification and country of origin marking
requirements of certain mens leather and textile
belts
Dear Ms. Cooper:
This is in response to your letter dated July 12, 1996,
on behalf of Arrow Manufacturing, Inc., which requests a
ruling regarding the tariff classification and country of
origin marking determination for certain mens' leather and
textile belts. A sample has been submitted for our
examination.
FACTS:
The article at issue is a braided textile and leather
belt referred to as Style No. 97016. We are informed that
the braided portion of the belt, the webbing, is comprised
of 40 percent leather and 60 percent textile material. The
front portion of the belt is leather and the buckle is
metal. The leather is sourced in the United States, the
buckle is produced in Taiwan and the webbing is manufactured
in Italy. All of the component pieces are exported to
Montreal, where they are fully assembled into a finished
belt.
We are informed telephonically that the textile portion
of the webbing is already braided upon importation into
Canada. The textile portion of the webbing, classifiable
under subheading 5808.10.9000, Harmonized Tariff Schedule of
the United States (HTSUS), is imported from Italy in large
rolls and is cut to size in Canada. The leather front and
leather portion of the webbing, are made from tanned hides,
classifiable under subheading 4101.31.6030, HTSUS, which are
imported into Canada where they are cut to shape, stamped
and either sewn or woven together with textile material to
form webbing.. The metal belt buckle, classifiable under
subheading 8308.90.6000, HTSUS, is imported to Canada from
Taiwan in a condition ready for assembly.
ISSUE:
What is the tariff classification and country of origin
of a finished mens leather and textile belt assembled in
Canada from components manufactured in the U.S., Italy and
Taiwan?
LAW AND ANALYSIS:
I. Tariff Classification
Articles are classified under the Harmonized Tariff
Schedule of the United States (HTSUS) according to the
General Rules of Interpretation (GRIs). GRI 1 provides that
the classification of articles is to be determined according
to the terms of the headings and any relevant section or
chapter notes and, provided that the headings or notes do
not otherwise require, according to the remaining GRIs taken
in order.
Because the subject merchandise is composed of textile,
leather and metal, the goods are, prima facie, classifiable
under three distinct headings: 4203, 6217 and 8303, HTSUS.
Therefore, the subject merchandise qualifies as a composite
good under GRI 3. Of particular relevance is heading 4203,
HTSUS, which covers articles of apparel and clothing or
accessories, of leather or composition leather. Heading
6217, HTSUS, covers other made up clothing accessories,
parts of garments or of clothing accessories. Neither
heading refers specifically to belts, but rather to
accessories based upon their constituent materials.
GRI 3 provides, in pertinent part:
(a) The heading which provides the
most specific description shall
be preferred to headings
providing a more general
description. However, when two
or more headings each refer to
part only of items in a set put
up for retail sale, those
headings are to be regarded as
equally specific in relation to
those goods, even if one of them
gives a more specific
description of the goods.
(b) Mixtures, composite goods
consisting of different
materials or made up of
different components, and goods
put up in sets for retail sale,
which cannot be classified by
reference to 3(a), shall be
classified as if they consisted
of the material or component
which gives them their essential
character, insofar as this
criterion is applicable.
In this instance, the subject merchandise is comprised
of metal, leather and textile material. The two most
relevant headings under consideration, 4203 and 6217, HTSUS,
are equally specific in relation to the belt in that each
refers to part only of the materials used to make the belt.
Consequently, the belt cannot be classified by reference to
GRI 3(a). Therefore, GRI 3(b) requires that the article be
classified by reference to its essential character. The
front leather part of the belt, viewed in conjunction with
the leather braiding portion of the webbing is striking, and
overshadows the textile component. In terms of bulk and
cost, Customs is of the opinion that the leather surpasses
the textile material. Inasmuch as the leather imparts the
essential character of the belt, the finished article is
classifiable under subheading 4203.30.0000, HTSUS, which is
the provision for articles of apparel and clothing
accessories, of leather or of composition leather: belts
and bandoliers with or without buckles.
II. Determination of Country of Origin
Section 304 of the Tariff Act of 1930, as amended (19
U.S.C. 1304), provides that, unless excepted, every article
of foreign origin imported into the United States shall be
marked in a conspicuous place as legibly, indelibly, and
permanently as the nature of the article (or its container)
will permit, in such a manner as to indicate to the ultimate
purchaser in the United States the English name of the
country of origin of the article. By enacting 19 U.S.C.
1304, Congress intended to ensure that the ultimate
purchaser would be able to know by inspecting the marking on
the imported goods the country of which the goods are the
product. The evident purpose is to mark the goods so that
at the time of purchase the ultimate purchaser may, by
knowing where the goods were produced, be able to buy or
refuse to buy them, if such marking should influence his
will. United States v. Friedlaender & Co., 27 C.C.P.A. 297,
302 C.A.D. 104 (1940).
Section 134.1(b), Customs Regulations (19 CFR
134.1(b)), defines "country of origin" as:
The country of manufacture, production,
or growth of any article of foreign
origin entering the United States.
Further work or material added to an
article in another country must effect a
substantial transformation in order to
render such other country the "country of
origin" within the meaning of
this part; however for a good of a NAFTA
country, the NAFTA Marking Rules will
determine the country of origin.
Section 134.1(j), Customs Regulations (19 CFR 134.1(j),
provides that the "NAFTA Marking Rules" are the rules
promulgated for purposes of determining whether a good is a
good of a NAFTA country. Section 134.1(g), Customs
Regulations (19 CFR 134.1(g)), defines a "good of a NAFTA
country" as an article for which the country of origin is
Canada, Mexico or the United States as determined under the
NAFTA Marking Rules, set forth at 19 CFR Part 102. Section
134.45(a)(2) of the Customs regulations (19 CFR
134.45(a)(2)), provides that a "good of a NAFTA country" may
be marked with the name of the country of origin in English,
French or Spanish.
Section 102.11, Customs Regulations (19 CFR 102.11),
sets forth the required hierarchy for determining whether a
good is a good of a NAFTA country for marking purposes.
This section states that the country of origin of a good is
the country in which:
(1) The good is wholly obtained or produced;
(2 The good is produced exclusively from domestic
materials; or
(3) Each foreign material incorporated in that
good undergoes an applicable change in tariff
classification set out in section 102.20 and
satisfies any other applicable requirements of
that section, and all other applicable
requirements of these rules are satisfied.
Section 102.1(e), Customs Regulations (19 CFR 102.1(e))
defines "foreign material" as "a material whose country of
origin as determined under these rules is not the same
country or origin as the country in which the good is
produced."
Here, component parts from the U.S., Italy and Taiwan
are exported to Canada for further processing into finished
leather and textile belts. Because the belts are processed
in Canada of material from the U.S., Italy and Taiwan, the
belts are neither wholly obtained or produced, nor produced
exclusively from domestic materials. Accordingly, 19 CFR
102.11(a)(3) is the applicable rule that next must be
applied to determine the origin of the belt.
Pursuant to 19 CFR 102.11(a)(3), the country of origin
of a good is the country in which each foreign material
incorporated in that good undergoes an applicable change in
tariff classification as set forth in 19 CFR 102.20, or
satisfies any other applicable requirement of that section.
In the case before us, because the finished belt is
classified under subheading 4203.30.0000, HTSUS, the change
in tariff classification must be made in accordance with
section 102.20(h), Section VIII: Chapters 41 through
43, subheading 4203-4206, HTSUS, which requires "[a] change
to headings 42.03 through 42.06 from any other heading,
including another heading within the group."
The metal buckle from Taiwan, initially classified
under heading 8308, HTSUS, the textile webbing from Italy,
initially classified under heading 5808, HTSUS, and the
leather comprising the belt front and webbing, initially
classified under heading 4104, HTSUS, are subsequently
classified under subheading, 4203.30.000, HTSUS, thus
undergoing the required tariff shift. Therefore, the
country of origin of the finished article is Canada, and it
must be marked accordingly.
HOLDING:
The submitted leather and textile belt is classifiable
under subheading 4203.30.0000, HTSUS, which provides for
articles of apparel and clothing accessories, of leather or
of composition leather: belts and bandoliers with or without
buckles.
On the basis of the information presented, we are of
the opinion that, pursuant to section 102.11(a)(3) of the
NAFTA Marking rules, the finished leather and textile belts
are considered to be a product of Canada and must be marked
accordingly.
A copy of this ruling letter should be attached to the
entry documents filed at the time this merchandise is
entered. If the documents have been filed without a copy,
this ruling should be brought to the attention of the
Customs officer handling the transaction.
Sincerely,
John Durant, Director
Tariff Classification and
Appeals Division