CLA-2 RR:TC:TE 959769 jb
Carlos A. Ospina
All World Inc.
1212 NW. 72nd Ave.
Miami, Florida 33126
RE: Country of origin determination for ornamental flags; 19 CFR
102.21(c)(2); tariff shift
Dear Mr. Ospina:
This is in reply to your letter dated September 11, 1996, on
behalf of your client, IPI (U.S.A.) Inc., requesting a country of
origin determination for ornamental flags which will be imported
into the United States.
FACTS:
The subject merchandise consists of three types of
ornamental flags made of nylon fabric. The first flag is
referred to as an "electric flag" which consists of two flags
sewn together and includes brass grommets, PVC inserts and
electric light sets in the packaging. The second flag is
referred to as a "basic decorative flag" which features applique,
and measures 28 inches by 40 inches. The last flag is referred
to as a "mini flag", a smaller version of the basic decorative
flag, and measures 12 inches by 18 inches. This last flag also
comes with a dowel and suction cup for hanging. We have been
advised by the Metals and Machinery Branch, Office of Regulations
and Rulings, that the "electric flag" is improperly classified in
heading 6307, Harmonized Tariff Schedule of the United States
(HTSUS). As the proper classification of the electric flag is at
issue, this ruling letter will not address the electric flag.
You will receive a separate letter from the Metals and Machinery
Branch as pertains to the proper classification of this
merchandise. At that time, should you still require an origin
determination for the electric flag, you should submit your
request to the Special Classification and Marking Branch, Office
of Regulations and Rulings.
The manufacturing operations for the flags are as follows:
TAIWAN
- nylon fabric is formed.
CHINA
- materials such as dowel and plastic suction cup are
sourced;
- cutting;
- sewing into completed product.
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 (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apparel entered, or withdrawn from warehouse, for consumption, on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":
6307.90 The country of origin of a good
classifiable under heading 6307.90 is the
country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
The subject ornamental flags are classified in subheading
6307.90, HTSUS. The fabric for the subject merchandise is formed
in Taiwan. As the "fabric-making" process occurs in a single
country, that is, Taiwan, country of origin is conferred in
Taiwan.
The marking of the subject merchandise as "Made in China" is
not consistent with the origin rules set forth in section 102.21,
Customs Regulations, and with the country of origin marking
requirements in Part 134, Customs Regulations. The proper
marking for the subject merchandise is "Made in Taiwan" or
"Product of Taiwan".
HOLDING:
The country of origin of the subject ornamental flags is
Taiwan and must be marked accordingly.
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 sections 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