CLA-2 RR:TC:TE 959126 jb
Anthony K. Mallgren, Esq.
Mallgren & Associates
3600 South Yosemite, Tenth floor
Denver, Co. 80237
RE: Country of origin determination for cassette tape and
compact disk cases; 19 CFR 102.21(c)(4); most important
manufacturing process
Dear Mr. Mallgren:
This is in reply to your letter dated January 30, 1996, on
behalf of your client, requesting a country of origin
determination for certain cassette tape and compact disk cases
which will be imported into the United States sometime on or
after July 1, 1996. Samples were submitted to this office for
examination.
FACTS:
The subject merchandise submitted to this Customs office
with your request, consists of five styles of nylon carrying
cases for audio cassette tapes and compact disks. Each of the
styles is represented by two samples; the first consisting of the
partially completed pieces and the second consisting of the
assembled cases. Also enclosed were two packaged cases, ready
for retail sale, and two product catalogues showing the completed
products. The manufacturing operations for each of the styles is
as follows:
STYLE I: CDW MODELS
Country A
- materials are sourced: nylon fabric, polyethylene foam,
polyurethane foam Potron lining material, zipper tape,
zipper sliders, PVC spines, cardboard, labels, edge binding tape.
Country B
- materials are marked, cut and dye-punched;
- zipper tape is cut to length and the sliders are added;
- polyethylene foam is glued to the cardboard;
- components of the various panels, including the fabric,
foam, cardboard, lining,
pockets and PVC spine are sewn together;
- zippers are tacked to the PVC spine.
Country A
- zipper and edge binding tape are sewn together to the
outside edges of the case;
- loose threads and fabric are trimmed and chalk marks on
the components are cleaned;
- products are inspected and packaged for shipment in
polybags and boxes.
Once the cases are received by your client in the United
States facility, see-through plastic pocket leaves are
inserted into the cases, sales and warranty literature are
enclosed, and they are packaged in final form for distribution.
STYLES II-IV: CL, CD AND CP MODELS
Country A
- materials are sourced: nylon fabric, polyurethane foam,
zipper tape, zipper sliders, seam tape, webbing,
nylon tricot, handle hardware.
Country B
- materials are marked, cut and dye-punched;
- zipper tape is cut to length and the sliders are added;
- fabric, foam, nylon and zippers are flat sewn together;
- webbing handles and labels are added.
Country A
-main panels and side panels are sewn together, adding seam
tape;
- loose threads and fabric are trimmed and chalk marks on
the components are cleaned;
- products are inspected and packaged for shipment in
polybags and boxes.
Once the cases are received by your client in the United
States facility, plastic divider trays are inserted into the
cases, sales and warranty literature are enclosed, and they are packaged in final form for distribution.
STYLE V: DM MODELS
Country A
- materials are sourced: nylon fabric, polyurethane foam,
zipper tape, zipper sliders, seam tape, webbing, hook and
loop fastener, handle hardware.
Country B
- materials are marked, cut and sewn together;
- zippers are sewn into the main panel and pocket;
- webbing and label are sewn on to the fabric.
Country A
- main panels are sewn together, adding seam tape;
- loose threads and fabric are trimmed and chalk marks on
the components are cleaned;
- products are inspected and packaged for shipment in
polybags and boxes.
Once the cases are received by your client in the United
States facility, sales and warranty literature are enclosed
and they are packaged in final form for distribution.
ISSUE:
What is the country of origin of the subject merchandise?
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 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
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":
4202.92.60-4202.92.90 A change to subheading 4202.92.60
through 4202.92.90 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 merchandise are classifiable in subheading
4202.92.90, HTSUSA, as containers of a kind similar to those of
heading 4202, HTSUSA, which provides for in general, carrying
cases. Section 102.21(b)(6) defines wholly assembled as :
The term "wholly assembled" when used with reference to a
good means that all components, of which there must be at
least two, preexisted in essentially the same condition as
found in the finished good and were combined to form the
finished good in a single country, territory, or insular
possession. Minor attachments and minor embellishments (for
example, appliques, beads, spangles, embroidery, buttons)
not appreciably affecting the identity of the good, and
minor subassemblies (for example, collars, cuffs, plackets,
pockets), will not affect the status of a good as "wholly
assembled" in a single country, territory, or insular
possession.
As the subject carrying cases are assembled in both Country A and
Country B, the good is not wholly assembled in a single country.
Accordingly Section 102.21 (c)(2) is inapplicable.
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":
(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, important
manufacturing operations occur in both Country A and Country B.
It is the opinion of this office that the manufacturing
operations in Country B, where many of the individual component
pieces are joined together, constitute the most important
manufacturing operations.
HOLDING:
The country of origin of the subject cassette tape and
compact disk cases is Country B.
You should be advised that as these products are repacked
once they enter the United States, they are subject to section
134.26 of the Federal Regulations, 19 CFR 134.26, which sets out
the marking certification requirements for imported articles
which are repacked or manipulated.
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 a 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