CLA-2 RR:TC:TE 959666 jb
Edward Fandino
Pronto Cargo Brokers, Inc.
7330 N.W. 66th Street
Miami, Florida 33166-3009
RE: Country of origin determination for backpacks; 19 CFR
102.21(c)(4); most important assembly or manufacturing
process
Dear Mr. Fandino:
This is in reply to your letter dated July 30, 1996, on
behalf of your client, Excel Handbags Co., Inc., requesting a
country of origin determination for certain backpacks which will
be imported into the United States. Samples were submitted to
this office for examination.
FACTS:
The merchandise at issue consists of two styles of
backpacks, referenced style numbers 7369 and 7397, made of nylon
material, suede, zippers, binding, and webbing, sourced in
Taiwan. The manufacturing process is as follows:
STYLE NUMBER 7369
TAIWAN
- material is sourced (polyester nylon fabric for the outer
shell, zippers, suede, buckles, nylon cord, woven label for
the front panel, polypropylene nylon webbing for the straps; webbing for the side pocket);
- fabric is cut into component pieces;
- front suede flap, with buckle, is sewn onto back panel;
- polypropylene webbing straps are cut to size and sewn onto
back panel;
- front panel, including pockets, webbing pocket and zippers
are sewn together;
- woven label is sewn onto front panel;
- bottom panel is sewn.
CHINA
- back panel, front panel and bottom panel are sewn
together;
- nylon cord is laced through eyelets;
- loose threads are cut;
- packing in polybags.
STYLE NUMBER 7397
TAIWAN
- material is sourced (polyester nylon fabric for the outer
shell, zippers, suede, decorative woven Aztec patch,
vinyl logo, polypropylene nylon webbing for the straps);
- fabric is cut into component pieces;
- polypropylene webbing straps are cut to size and sewn onto
back panel;
- side panels and front panel are sewn together; suede strip
is sewn to bottom of front panel;
- pockets for side panels, including zippers, are sewn and
attached to side panels;
- pockets, including zippers, are sewn and attached to the
front panel; vinyl logo is embossed and sewn onto top front
pocket of front panel;
- decorative woven Aztec patch is sewn onto the suede front
flap;
- bottom panel is sewn.
CHINA
- back panel, front panel and bottom panel are sewn
together;
- loose threads are cut;
- packing in polybags.
ISSUE:
What is the country of origin of the submitted merchandise?
LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act (codified
at 19 U.S.C. 3592) 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 of
the 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":
4202.92.15-4202.92.30 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 subject merchandise is classified in subheading
4202.92.3020, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). As the subject backpacks are not wholly
assembled in a single country, the terms of the tariff shift are
not met.
Section 102.21(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;
(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 single 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 that, "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 style number 7369, the most
important assembly process occurs at the time in which the front
suede flap is sewn onto the back panel, the polypropylene webbing
straps are sewn onto the back panel, the front panel, including
pockets, webbing pocket, and zippers are sewn together, and the
bottom panel is sewn, in Taiwan. In the case of style number
7397, the most important assembly process occurs at the time the
polypropylene webbing straps are sewn onto the back panel, side
panels and front panel are sewn together, the suede strip is sewn
to the bottom of the front panel, the pockets for the side
panels, including zippers are sewn and attached to the side
panels, the pockets, including zippers are sewn and attached to
the front panel, the decorative woven Aztec patch is sewn onto
the suede front flap, and the bottom panel is sewn, in Taiwan.
HOLDING:
The country of origin of the subject merchandise, referenced
style numbers 7369 and 7397, is Taiwan.
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