CLA-2 RR:TC:TE 959016 CAB
William D. Outman, II, Esq.
Baker & McKenzie
815 Connecticut Avenue, N.W.
Washington, D.C. 20006-4078
RE: Country of origin determination for luggage; Section
102.21(c)(4), Customs Regulations
Dear Mr. Outman:
This is in response to your inquiry of March 7, 1996,
requesting a country of origin determination on behalf of
Samsonite Corporation, for several models of soft-sided luggage.
At the time of submission, there were no samples presented for
examination. However, in a conference with Customs attorneys on
July 16, 1996, you provided Customs with three samples, the
garment bag, the duffle bag, and an upright case.
FACTS:
The Samsonite luggage at issue includes the personal case,
ultravalet garment bag, wheeled duffle, upright suitcase with
wheels (26" and 30"), garment bag with two wheels, 28" Pullman
suitcase, and carry-on upright suitcase on wheels.
The manufacturing process for the soft-sided luggage at
issue is as follows: (1) In Taiwan, ramie 600 D polyester fabric
with polyurethane backing and 210 D nylon fabric with
polyurethane coating are woven, dyed, coated, and finished; (2)
sheets of polyvinyl chloride are produced by extruding, dyeing
and laminating machines; these sheets are subsequently cut into
components for the base of the luggage and as reinforcement
pieces; (3) polyethylene materials are produced and cut to shape;
(4) zippers are manufactured and assembled; (5) polypropylene
webbing and elastic tie tape are woven, dyed and finished; (6)
all other hardware including steel frames, plastic frames, coil
wire, wheels, studs and handles are manufactured and assembled;
(7), finally, padding is manufactured and the plywood base is
imported into and cut to shape in Taiwan. In Vietnam, the
manufacturing steps are as follows: (1) fabric panel components
will be glued and heat-sealed; (2) after pre-sewing procedures,
the fabric panels will be sewn together; (3) webbing, zippers,
and other components parts will also be sewn to the assembled
panels; (4) finally, the plastic or metal frame will be bent to a
c-shape. In Taiwan, the final assembly process will occur. In
the case of the upright case, this final process includes
riveting the plastic or metal frame to a plywood base. The base
will then be fitted into the sewn luggage panel and permanently
sewn into position. Where applicable, the wheels will be joined
to the base and the handles to the frame. In the case of the
other luggage pieces, the sub-assembled top component will be
joined to the sub-assembled bottom component. The completed
suitcase will then be packed for export to the United States.
ISSUE:
What is the country of origin of the luggage at issue?
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 luggage 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.
Section 102l.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:
A change to subheading 4202.12.40 through 4202.12.80 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.
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 subject luggage is either classifiable in subheading
4202.92.20 or 4202.12.80 of the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), depending on the article.
Subheading 4202.92.20, HTSUSA, provides for among other articles,
travel bags, with outer surface of textile materials. Subheading
4202.12.80, HTSUSA, provides for among other articles, suitcases,
with outer surface of textile materials. Section 102.21(c)(2)
is not applicable to the instant merchandise as the luggage is
not wholly assembled in a single country.
Section 102.21(c)(3) provides for goods that have been
wholly assembled (with certain enumerated exceptions) in a single
country, insular possession, or territory or which are knit to
shape. Section 102.21(c)(3) is therefore inapplicable to the
subject merchandise as it has not been wholly assembled in a
single country, insular possession, or territory, nor is it a
knit to shape good.
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 polyester fabric with polyurethane
backing and the nylon fabric with polyurethane coating used for
the luggage are woven, dyed, coated with polyurethane and
finished in Taiwan. This fabric is cut into components in Taiwan
and then transported to Vietnam for further manufacturing. Also
in Taiwan, the plastic or metal frame is riveted to a plywood
base. The base is then fitted and sewn into the sewn luggage
panel. Where applicable, the wheels will be joined to the base
and the handles to the frame.
You refer to the procedures in Vietnam as "only three simple
procedures". However, the assembly in Vietnam consists of
preparing multiple fabric components for sewing by utilizing glue
and heat-sealing machines. The assembly process also includes
sewing the majority of the fabric pieces, attaching webbing,
zippers, and other hardware pieces. In addition, the plastic or
metal-frame will also be bent to a c-shape in Vietnam. The
assembly in Vietnam is more important than the assembly and
manufacturing operations in Taiwan as this is the country where
the assembly process results in unattached cut fabric components
being assembled into an identifiable, albeit unfinished, luggage
piece. Therefore, pursuant to Section 102.21(c)(4), the country
of origin of the luggage at issue is Vietnam.
HOLDING:
The country of origin of the luggage at issue is Vietnam.
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 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