CLA-2 RR:TC:TE 959580 CAB
Diane L. Weinberg, Esq.
Sandler, Travis & Rosenberg, P.A.
505 Park Avenue
New York, NY 10022-1106
RE: Country of origin of various bags; Section 102.21(c)(4),
Customs Regulations
Dear Ms. Weinberg:
This is in response to your inquiry of August 1, 1996,
requesting a country of origin determination for certain textile
backpacks. This request is on behalf of your client Jong Lih
Plastic Enterprise Co., Ltd. A sample was submitted for
examination.
FACTS:
The bags at issue are textile backpacks. Style No. JL-85030
is a backpack with a front zipper pocket, a top opening secured
by a drawstring and flap closure with a snap buckle, webbing top
handle and back straps, and a padded bottom. The inseams are
hemmed with PVC sheeting tapes. The manufacturing operations
which are completed in Countries A and B are as follows:
1. Design and make patterns
2. Source and purchase all composing materials and accessories,
including fabrics, webbings, zippers, PVC foam, zipper sliders,
labels, hangtags, metal and plastic
hardwares, rivets, and drawstrings.
3. All of the fabrics are dyed and finished
4. All of the body fabric, lining, webbing, zippers, PVC-foam,
and drawstrings are marked and cut to patterned sizes and
lengths
5. Attach front pocket with zipper and sew side panels together
6. Sew the insert buckle panels onto the main flap panel
7. Align the upper flap, sponge, and the bottom flap panels and
sew them together
8. Sew the inner pocket with zipper
9. Align the back panel, the PVC foam panels and back-panel
lining and sew them together
10. Sew the shoulder strap panels with webbings and attach the
adjustment buckles
11. Sew the top drawstring-hole seam onto the top of the two
side panels
12. Sew the insert-buckle panel and the drawstring-hole seam
onto the front and back panels
13. Punch holes with rivets onto front, back and side panels
14. Attach the front pocket panel onto the front panel
15. Sew inner pocket onto back panel
16. Attach the flap onto the back panel
17. Sew the flap with the top webbing handle, shoulder straps,
and a decorating webbing all together onto the back panel
18. Sew the main front panel and the back panel together
19. Sew the main compartment with the side panels
20. Attach the country of origin label onto the seam
21. Sew the inseam and hem with PVC sheeting tapes
22. Trim the threads and attach hangtag
23. Turn the bag and attach the drawstring cord
24. Inspect the finished backpack
25. Packaging and load cartons to container and export
SCENARIO I
Country A: Operations 1-3 and 18-25
Country B: Operations 4-17
SCENARIO II
Country A: Operations 1-3 and 14-25
Country B: Operations 4-13
Style No. JL-84201 is a backpack with J-hooked flap closure,
a top opening secured by a drawstring with a fasten buckle,
fabric top handle and back straps, and a flat, rectangular shaped
bottom. Two back straps can be partially zipped together to form
one strap. All of the inseams of the backpack are hemmed with
PVC sheeting tapes. The manufacturing operations are as follows:
1. Design and make patterns
2. Source and purchase all composing material and accessories,
including fabrics, lining, webbings, zippers, PVC foam, zipper
sliders, labels, hangtags, metal
and plastic hardwares, rivets, and
drawstrings
3. All the fabrics are dyed and finished
4. Cut all the fabric, lining, sponge-foam, paperboard,
drawstring, and PVC piping to patterned sizes and lengths
5. Sew the patterned fabric into straps and cut to different
lengths for each panel
6. Sew the J-hook buckle straps
7. Sew the upper flap panel, sponge, paper board, and lower
flap panel all together
8. Hem the upper flap with body material
9. Attach the front D-ring to strap and sew it onto the front
panel
10. Sew the lower front decorating panel onto the front panel
11. Sew the two shoulder straps with the shoulder-strap zipper
and attach the strap adjustment buckles with strap-end
panels
12. Sew the drawstring-hole seams onto the front and back panels
13. Sew the PVC piping panel and attach to the bottom panel
14. Sew the top handle and the shoulder straps onto the back
panel at the marked location
15. Sew the flap onto the back panel
16. Sew a decorating panel onto back panels to cover the flap
and shoulder strap seams
17. Sew the front panel and back panels together
18. Punch drawstring-holes with rivets onto the front and back
panels
19. Attach the country of origin label onto the seam
20. Sew the bottom panel with the body compartment together to
form the bottom of the backpack
21. Sew the inseam and hem with PVC-sheeting tapes
22. Trim the threads and attach hangtag
23. Turn the bag and attach the drawstring cord
24. Inspect the finished backpack
25. Packaging and load cartons to container and export
SCENARIO I
Country A: Operations 1-3 and 17-25
Country B: Operations 4-16
SCENARIO II
Country A: Operations 1-3 and 14-25
Country B: Operations 4-13
Although not stated in your submission, Customs is assuming that
Countries "A" and "B" will not include Israel or a signatory of
the North American Free Trade Agreement (NAFTA).
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
when the good was wholly obtained or produced in a single
country, territory, or insular possession. As the subject
merchandise has not been wholly obtained or produced in a single
country, territory, or insular possession, 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.
Heading 4202 of the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), provides for, inter alia, travel,
sports and similar bags. The subject backpacks fit 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.
The applicable tariff shift rule of heading 4202 requires
the merchandise to be wholly assembled in a single country,
territory, or insular possession. As the subject merchandise
undergo assembly operations in Country A and Country B, they are
not wholly assembled in a single country, territory, or insular
possession, thus, Section 102.21(c)(2) is not applicable.
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 recent Headquarters Ruling Letter (HRL) 958626, issued on
May 2, 1996, several bags were at issue and Customs determined
the country of origin of bags similar to the subject bags to be
the country where the primary body panels were connected.
Although this case is helpful when determining the country of
origin of the instant bags, the rationale in that case is not
dispositive
for determining the country of origin for the instant bags as the
subject bags undergo more in depth assembly operations in both
Country A and B which were not found in HRL 958626.
In the case of Style No. JL-85030 in Scenario I, the main
front panel and back panel are attached and the side panels are
sewn to the main compartment in Country A. In Country B, the
side panels of the outer front pocket are sewn together; the
insert buckle panels are sewn onto the main flap panel; the back
panel, PVC foam panels, and the back-panel lining are all sewn
together; the insert buckle panel is attached onto the front and
back panels; the front pocket is attached to the front panel; the
flap is attached to the back panel; and the straps and handle are
attached to the back panel. When evaluating the assembly
operations in both Country A and Country B, it appears that the
assembly operations in Country A are the most important in
accordance with Section 102.21(c)(4). In Scenario II, the
assembly process in Country A involves attaching the front
pocket, inner pocket, flap, top webbing handle, shoulder straps,
and decorative webbing to the back panel; sewing the main front
and back panel together; and sewing the main compartment with the
side panels in Country A. Thus, in accordance with Section
102.21(c)(4), the country of origin of Style JL-85030 in Scenario
II is Country A, as this is the country where the most important
assembly process occurs.
In the case of Style JL-84201 in Scenario I, the extensive
assembly operations in Country B includes sewing the patterned
fabric into straps and cutting to various lengths for each panel;
sewing the two shoulder straps with the strap zipper and
attaching the strap adjustment buckles with strap-end panels;
sewing the upper flap panel, sponge, paper board, and lower flap
panel together; attaching the front D-ring to a strap and sewing
it onto the front panel; sewing the lower decorating panel onto
the front panel; sewing and attaching the PVC piping panel to the
bottom panel; sewing the top handle and shoulder straps onto the
back panel; sewing the flap onto the back panel; and sewing a
decorating panel onto the back panel. Therefore, in accordance
with Section 102.21(c)(4), the country of origin of Style JL-84201 in Scenario I is Country B, as this is the country where
the most important assembly process takes place. In the case of
Style
JL-84201 in Scenario II, the assembly process in Country A
includes; sewing the top handle and the shoulder straps onto the
back panel; sewing the flap onto the back panel; sewing a
decorating panel onto the back panel; sewing the front and back
panels together; and sewing the bottom panel with the body
compartment to form the bottom of the backpack. Therefore, in
accordance with Section 102.21(c)(4), the country of origin of
Style JL-84201 in Scenario II is Country A, as this is the
country where the most important assembly process occurs.
HOLDING:
The country of origin of Style JL-84201 in Scenario I is
Country B. The country of origin of Style JL-84201 in Scenario
II is Country A. The country of origin of Style JL-85030 in
Scenario I is Country A. The country of origin of Style JL-85030
in Scenario II is A.
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 f
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