CLA-2 RR:TC:TE 959417 CAB
Roland E. Portal
Pronto Cargo Brokers, Inc.
P.O. Box 52-3113
Miami, FL 33152-3113
RE: Country of origin of a backpack; Section 102.21(c)(4),
Customs Regulations
Dear Mr. Portal:
This is in response to your inquiry of May 1, 1996,
requesting a country of origin determination for a backpack
pursuant to Section 102.21, Customs Regulations. This request is
on behalf of Excel Handbags Co., Inc. A sample was submitted for
examination.
FACTS:
The article at issue is designed in the manner of a
traditional backpack. This design includes adjustable, padded
straps which fit over the wearer's shoulders. The backpack is
constructed of man-made textile material with the bottom side and
narrow front strip constructed of suede material. The backpack
also contains exterior compartments which have zipper closures.
The materials required to produce the finished backpack
include the nylon material, suede, zippers, binding, webbing, and
all hang tags. These materials are produced in Taiwan. All of
the component pieces are cut in China. You state that minor
assembly parts are also sewn in China. You do not mention which
minor parts are assembled in China. From an examination of the
finished backpack, Customs is assuming that what you refer to as
"minor subassemblies" include the attachment of an interior
pocket and small exterior side pocket with zipper to the front
panel and the joining of the lining to the component pieces in
China. The front panel, back panel, suede components, shoulder
straps, gusset with zipper, and front pocket are exported and
assembled into a finished backpack in Taiwan. If this
description of the manufacturing process is incorrect, please
notify this office and we will rule accordingly.
ISSUE:
What is the country of origin for the subject backpack?
LAW AND ANALYSIS:
Pursuant to the Uruguay Round Agreements Act, new rules of
origin were effective on textile products entered, or withdrawn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 is wholly obtained or produced in a single
country, territory, or insular possession. As the subject bag is
not wholly obtained or produced in a single country, territory,
or insular possession, Section 102.21(c)(1) 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 paragraph (c)(1) of this section. Section
102.21(c)(2) states:
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.
Heading 4202 of the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), provides for, inter alia, travel,
sports and similar bags. The subject backpack fits within the
purview of this heading.
Section 102.21(e) states "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.
In this instance, the subject backpack undergoes assembly
operations in China and Taiwan. Therefore, the bag is not wholly
assembled in a single country and Section 102.21(c)(2) is
inapplicable.
Section 102.21(c)(3) provides for goods that have been
wholly assembled 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), provides 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.
Section 102.21(b)(6) stipulates that "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."
In this instance, the assembly of the front and back panels,
bottom panel, shoulder straps, gusset with zippers, and exterior
pocket in Taiwan are not considered minor subassembly operations.
The attachment of the lining to the component pieces in China
and the attachment of both the interior and exterior pockets to
the front panel in China are also not considered minor
subassembly operations. However, when evaluating the assembly
operations in both Taiwan and China pursuant to Section
102.21(c)(4), it appears that the assembly operations in Taiwan
are the most important.
HOLDING:
Pursuant to Section 102.21(c)(4), Taiwan is the country of
origin for the backpack.
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