CLA-2 RR:TC:TE 959526 RH
TARIFF NOS.: 6307.10.2030; 7326.20.0050; 3402.20.1000;
3402.20.5000; 2905.12.0050;
4202.32.2000; 4202.32.9550
Mr. Stephen W. Marlow
Tower Group International, Inc.
205 West Service Road
Champlain, NY 12919
RE: Classification and country of origin determination for
fabric cleaning cloth, vinyl
carrying case, keychain/optical screwdriver, spray bottle
lens cleaner, nylon eyeglass case; lenses; eyeglass; heading
4202; heading 6307; heading 2905; Heading 3402; 102.21; Section 102.11; NAFTA; 19 USC 1304; 134.1(b); Article 509; tariff
shift
Dear Mr. Marlow:
This is in reply to your letter of July 12, 1996, and your
facsimiles of December 13, 1996 and January 24, 1997, on behalf
of your client, Itochu Canada Limited, requesting a
classification and country of origin ruling on various items.
Although some of the materials and/or manufacturing operations
performed in this case are from and/or are performed in Canada or
the United States, you did not ask us to determine whether or not
the articles in question are eligible for tariff preferential
treatment under the North American Free Trade Agreement (NAFTA).
Thus, we have not addressed that issue in this letter. If you
decide that you would like us to address that issue, you may
submit another ruling request.
You provided samples of the merchandise for our consideration.
FACTS:
The merchandise under consideration consists of six different
articles that are packaged as follows:
1. Manmade fabric lens cleaning cloth packaged in a reusable
vinyl case, complete with keychain/optical screwdriver; - 2 -
2. Manmade fabric lens cleaning cloth packaged in a reusable
vinyl case, complete with keychain/optical screwdriver and a
spray bottle of "Micro-Clair" lens cleaner;
3. Manmade fabric lens cleaning cloth packaged with a
keychain/optical screwdriver, liquid "SunGear" lens
treatment and a nylon eyeglass case.
The lens cleaning cloths are made from fabric that is
manufactured in Japan and then sent to Canada for processing. In
Canada, the fabric is imprinted using a sublimation method.
Rolls are then layered and cut into small squares. All sides are
hemmed and a satin label with the country of origin and
composition of the textile is attached. The cloth is folded and
inserted in the cases.
The vinyl cases are made in Canada from U.S.-manufactured vinyl.
In Canada, the vinyl material is layered and slit into five
sections in order to produce eleven inch wide rolls. It is
inserted in an automatic feeder that welds the vinyl together to
create a cut and sealed piece that is detached from the
surrounding surplus. It is then hot stamped with the trademark
and the country of origin (Canada).
The keychain/optical screwdrivers are wholly manufactured in
Taiwan from Taiwanese materials. We notice that Customs issued
District Decision (DD) 801388 to you on September 8, 1994, on
behalf of Itochu Canada Limited, regarding the classification of
a keychain/optical screwdriver.
The nylon eyeglass case is made in Canada from Canadian fabric.
You did not provide a description of the processing operations
for the eyeglass case or the keychain/optical screwdrivers.
The spray bottle of "Micro-Clair" lens cleaner contains water,
alcohol, detergent, cleanser and fragrance, which you state are
Canadian ingredients. The spray bottle is made in Canada and the
pump is made in the United States. No ingredients are listed on
the bottle.
In your facsimile of January 24, 1997, you state that the liquid
"SunGear" lens treatment contains the same ingredients as the
"Micro-Clair" lens cleaner, that the bottle is from Switzerland,
and that the cap and pump are made in the United States.
However, the ingredients listed on the bottle include only water
and isopropyl alcohol.
ISSUES:
What is the classification and country of origin of the above
merchandise?
- 3 -
LAW AND ANALYSIS:
Classification
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRIs). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes. In the event
that the goods cannot be classified solely on the basis of GRI 1,
and if the headings and legal notes do not otherwise require, the
remaining GRIs are then applied.
The Explanatory Notes (ENs) to the Harmonized Commodity
Description and Coding System, which represent the official
interpretation of the tariff at the international level,
facilitate classification under the HTSUSA by offering guidance
in understanding the scope of the headings and GRIs.
The six articles in question are classifiable as follows:
1. The vinyl cases are classifiable under subheading
4202.32.2000, HTSUSA, which provides, in part, for
articles of a kind normally carried in the pocket or in
the handbag, with an outer surface of sheeting of
plastic;
2. The nylon eyeglass case is classifiable under
subheading 4202.32.9550, HTSUSA, which provides, in
part, for articles of a kind normally carried in the
pocket or in the handbag, with an outer surface of
textile materials;
3. The cleaning cloths are classifiable under
subheading 6307.10.2030, HTSUSA, which provides, in
part, for other made-up articles (other cleaning
cloths);
4. Depending on whether or not it is aromatic, the
"Micro-Clair" lens cleaner is classifiable under
subheading 3402.20.1000, HTSUSA, or subheading
3402.20.5000, HTSUSA, which provide for washing and
cleaning preparations put up for retail sale;
5. The liquid "SunGear" lens treatment contains only
water and isopropyl alcohol and is classifiable in
subheading 2905.12.0050, HTSUSA, which provides, in
part, for acyclic alcohols and their halogenated,
sulfonated, nitrated or nitrosated derivatives
(isopropyl alcohol);
6. The keychain/optical screwdriver is classifiable
under subheading 7306.20.0050, HTSUSA, which provides,
in part, for other articles of iron or steel. See, DD
801388, issued to you on September 8, 1994.
- 4 -
GRI 3(b) states:
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.
The EN to GRI 3(b) provides in pertinent part that:
For the purpose of this Rule, composite goods made up
of different components shall be taken to mean not only
those in which the components are attached to each
other to form a practically inseparable whole but also
those with separable components, provided these
components are adapted one to the other and are
mutually complementary and that together they form a
whole which would not normally be offered for sale in
separate parts.
We recently classified a vinyl carrying case and cleaning cloth
from your client's company as a composite good in HQ 959525,
dated February 4, 1997. In this case, however, the vinyl case,
cleaning cloth, keychain/optical screwdriver, lens cleaner and
eyeglass case are not composite goods. These items are not
mutually complimentary and are the type of merchandise normally
offered for sale separately.
Additionally, the components do not qualify as a set. The EN
state that goods put up in sets for retail sale are those which:
(a) consist of at least two different articles which
are, prima facie, classifiable in
different headings . . . ;
(b) consist of products or articles put up together to
meet a particular need or
carry out a specific activity;
(c) are put up in a manner suitable for sale directly to
users without repacking. . . .
- 5 -
Although the components are packaged together for retail sale and
are classifiable in two or more headings, they are not products
or articles put up together to meet a particular need or carry
out a specific activity. For instance, the keychain/optical
screwdriver is needed to aid in the repair of eyeglass parts and
to hold keys. The cleaning cloth and lens cleaner are used to
clean eyeglass lenses. The vinyl case and nylon eyeglass case
serve a different function - to store items.
Since the articles fail to qualify as a set or as a composite
good, they are classifiable separately in accordance with GRI 1,
under the tariff provisions enumerated on page three of this
ruling.
Country of Origin
On September 5, 1995, Customs published in the Federal Register
(60 FR 46188) T.D. 95-69 which set forth final amendments to the
Customs Regulations to implement the provisions of section 334
(b) of the Uruguay Round Agreements Act ("the Act"), Public Law
103-465, 108 Stat. 4809, codified at 19 U.S.C. 3592, regarding
the country of origin of textile and apparel products. These
final regulations apply to goods entered, or withdrawn from
warehouse, for
consumption on or after July 1, 1996. The regulatory provisions
in T.D. 95-69 that implement the basic origin principles of
section 334(b) of the Act are contained in 102.21 of the Customs
Regulations (19 CFR 102.21).
The final rule for determining country of origin of a good for
purposes of Annex 311 of the NAFTA was published by Customs on
June 6, 1996, in the Federal Register (61 FR 28932). It states
in pertinent part:
New 102.21 was modeled on the approach taken in the
interim Part 102 texts as published in T.D. 94-4 and
thus incorporates a general statement of applicability
(paragraph (a)), various definitions (paragraph (b)),
general origin rules (paragraphs (c) and (d)), and
specific tariff shift and/or other requirements
(paragraph (e)) that apply under the second general
rule. Of particular note for purposes of the present
document is the definition of "textile or apparel
product" in 102.21(b)(5) which delineates the class of
goods covered by the 102.21 rules. That definition
identifies those goods with reference to classification
in the HTSUS and refers to Chapters 50 through 63 (that
is, all of Section XI) of the HTSUS as well as to
specific headings and 6-, 8- or 10-digit subheadings of
the HTSUS that fall outside Section XI. Thus, if a
good is classifiable in an HTSUS provision listed in
102.21(b)(5), precedence must be given to the 102.21
rules over any other regulatory provision with regard
to that good, including any origin rules contained
elsewhere in part 102.
As the cleaning cloth is classifiable in subheading 6307.10, and
the nylon pouch is classifiable in subheading 4202.32, textile
articles identified by Section 102.21(b)(5), the Section 102.21
rules take precedence over any other rules of origin to determine
the appropriate country of origin. - 6 -
Section 102.21(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." The nylon pouch is made in Canada from Canadian
fabric (made from Canadian fibers). Thus, the country of origin
will be Canada. The cleaning cloth, on the other hand, is
neither wholly obtained nor produced in a single country,
territory or insular possession, and Section 102.21(c)(1) is not
applicable to that article.
Section 102.21(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":
6307.10 The country of origin of a good classifiable under
heading 6307.10 is the country, territory, or insular
possession in which the fabric comprising the
good was formed by a fabric-making process.
You state that the fabric imported into Canada was "manufactured"
in Japan, which is compatible with the above rule. Hence, the
country of origin will be Japan.
The country of origin of the vinyl cases, lens cleaners and
keychain/optical screwdrivers cannot be determined under Section
102.21 because they are not textile articles. Moreover, as the
vinyl cases and lens cleaners are imported from, and processed in
Canada, their origin is determined pursuant to the NAFTA Marking
Rules.
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
Part 102, Customs Regulations (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.
- 7 -
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. According to 19 CFR 102.11(a), 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;
(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.
The term "domestic material" is defined in 19 CFR 102.1(d) as
a material whose country of origin as determined under these
rules is the same country as the country in which the good is
produced.
The information provided to us indicates that all of the
ingredients in the lens cleaners are of Canadian origin.
Assuming that these ingredients are of Canadian origin
pursuant to the Part 102 rules, the country of origin of the
bottled lens cleaner and lens treatment would be Canada,
pursuant to 19 CFR 102.11(a)(2), since both goods are
produced exclusively from domestic (in this case Canadian)
materials.
The vinyl cases on the other hand, are made in Canada from
U.S.-manufactured vinyl and are, therefore, neither wholly
obtained nor produced exclusively from domestic materials.
Accordingly, paragraph (a)(3) of Section 102.11 (tariff shift)
is the next applicable rule for determining the origin of
these articles.
The vinyl cases are classifiable under subheading 4202.32.
The applicable change in tariff classification for that
provision, set out in 102.20(h), Section VIII, Chapters 41
through 43 provides:
4202.31-4202.32......A change to subheading 4202.31
through 4202.32 from
any other heading, provided that the change
does not
result from the assembly of foreign cut
components.
The vinyl imported into Canada is classifiable outside
subheadings 4202.31 through 4202.32.
Both the cutting and the assembly of the U.S.-made vinyl
material occur in Canada. Since the U.S. [foreign] material
undergoes the above tariff shift in Canada, Canada is the
country of origin.
- 8 -
Finally, the keychain/optical screwdriver is not a textile
article nor a good of a NAFTA country. Part 134 of the
Customs Regulations implements the country of origin marking
requirements and exceptions of 19 U.S.C. 1304. Section
134.1(b) states:
Country of origin' means 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.
The keychain/optical screwdriver is manufactured in Taiwan
exclusively from Taiwanese materials. Thus, Taiwan is the
country of origin.
HOLDING:
The classification and country of origin of the subject
merchandise are as follows:
Article Classification Duty Country of Origin
1. Vinyl Cases 4202.32.2000 20% Canada
2. Nylon Eyeglass 4202.32.9550 19.3% Canada Case
3. Cleaning Cloths 6307.10.2030 8.9% Japan
4. "Micro-Clair" 3402.20.1000 5% Canada Lens Cleaner 3402.20.5000 Free Canada
5. Liquid "SunGear" 2905.12.0050 11.4% Canada Lens Treatment
6. Keychain/ 7326.20.0050 4.6% Taiwan Screwdriver
- 9 -
The textile category for the nylon eyeglass case is 670.
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
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 C.F.R.
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 C.F.R.
177.2.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division