CLA-2 RR:CR:TE 960804 GGD
Michael J. Laska
Mercury Luggage Manufacturing
4843 Victor Street
Jacksonville, Florida 32207
RE: Country of Origin Determination for Backpacks; 19 CFR
102.21(c)(4); Most Important Assembly or Manufacturing
Process; 19 CFR 102.21(c)(5); Last Important Assembly or
Manufacturing Process
Dear Mr. Laska:
This is in response to your letter dated June 9, 1997,
requesting country of origin determinations for five backpacks
which have been, and will continue to be, imported into the
United States on an ongoing basis on or after July 1, 1996.
Samples were submitted for examination with the request.
FACTS:
The five backpacks at issue - identified as styles SH-0003,
SH-0006, SH-0005, SH-6615, and SH-5511, are essentially composed
of polyester material, hardware, buckles, zippers, webbing, and
embroidery, all of which are sourced in Taiwan. In addition to
these materials, style SH-0006 contains mesh fabric, grommets,
and an extra padded pocket, styles SH-0005 and SH-6615 contain
suede on and/or near their bottom panels, and as tabs for their
zippers, and style SH-0003 contains elastic, a looped key ring,
an extra main compartment, a nylon and mesh fabric organizer
(with a zippered pocket for coins, an open slot pocket for credit
or i.d. cards, and two tubular pockets for pens). Another flat
compartment is revealed when the organizer's top is pulled away
from the back wall. The additional materials are also sourced in
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Taiwan. "Multiple Declarations" prepared by the Taiwanese
manufacturer state that the manufacturing operations are as
follows:
STYLE SH-0003
TAIWAN
- material is sourced (100 percent polyester fabric,
hardware, buckles, zippers, webbing, embroidery, mesh
fabric, and elastic);
- fabric is cut into component pieces;
- first component: front panel (including zippered pocket,
extra main compartment, embroidered "North Crest" logo,
zipper, buckle, elastic, fabric loop with key ring,
organizer with zippered pocket, slot pockets, and pen
pockets) is sewn together;
- second component: back panel - including shoulder straps
with webbing and buckle - is sewn together;
- third component: bottom panel with gussets (two fabric
pieces) and zipper are sewn together.
CHINA
- front panel, back panel, and bottom panel with gussets are
sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.
STYLE SH-0006
TAIWAN
- material is sourced (100 percent polyester fabric,
hardware, buckles, zippers, webbing, embroidery, padding,
and mesh);
- fabric is cut into component pieces;
- first component: front panel (including drawstring pocket
with grommets and zippered pocket with an external mesh
zippered pocket, embroidered "North Crest" logo, zipper, and
buckle) is sewn together;
- second component: back panel - including shoulder straps
with webbing and buckle - is sewn together;
- third component: bottom panel with gussets (two fabric
pieces) and zipper are sewn together.
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CHINA
- front panel, back panel, and bottom panel with gussets are
sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.
STYLE SH-5511
TAIWAN
- material is sourced (100 percent polyester fabric,
hardware, buckles, zippers, webbing, and embroidery);
- fabric is cut into component pieces;
- first component: front panel - including pocket with
embroidered "North Crest" logo and zipper - is sewn
together;
- second component: back panel - including shoulder straps
with webbing and buckle - is sewn together;
- third component: bottom panel with gussets (two fabric
pieces) and zipper are sewn together.
CHINA
- front panel, back panel, and bottom panel with gussets are
sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.
STYLE SH-0005
TAIWAN
- material is sourced (polyester fabric, hardware, buckles,
zippers, webbing, embroidery, and suede);
- fabric is cut into component pieces;
- first component: body panel (including front panel with
pocket and embroidered "North Crest" logo), suede bottom
panel, and back panel (including shoulder straps with
webbing and buckle) are sewn together;
- second component: gussets (three fabric pieces) with
zipper and two suede pieces are sewn together;
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CHINA
- first component (body panel) and second component (gussets
with zipper and suede pieces) are sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.
STYLE SH-6615
TAIWAN
- material is sourced (polyester fabric, hardware, buckles,
zippers, webbing, embroidery, and suede);
- fabric is cut into component pieces;
- first component: front panel (including pocket with
embroidered "North Crest" logo), zipper, and suede piece are
sewn together
- second component: back panel (including shoulder straps
with webbing and buckle) is sewn together;
- third component: bottom panel with gussets (two fabric
pieces), two suede pieces, and zipper are sewn together;
CHINA
- first component (front panel), second component (back
panel), and third component (bottom panel with gussets) are
sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.
ISSUE:
What is the country of origin of the merchandise?
LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act provides
new rules of origin for textiles and apparel entered, or
withdrawn from warehouse, for consumption, on or 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
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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." Since none of the merchandise is wholly obtained or
produced in a single country, territory or insular possession,
paragraph (c)(1) is not applicable.
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
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 five styles of backpacks are classified in subheading
4202.92.3020, HTSUSA. Since none of the merchandise is wholly
assembled in a single country, however, the terms of the tariff
shift are not met.
Paragraph (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; or
(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
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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 country, territory, or insular
possession in which the good was wholly assembled.
Since the merchandise is neither knit to shape, nor wholly
assembled in a single country, section 102.21(c)(3) is not
applicable.
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 Headquarters Ruling Letter (HQ) 959676, issued December
24, 1996, Customs determined the country of origin of a backpack
similar to backpack style SH-5511 to be the country in which the
front panel, back panel, and side panel were all sewn together.
For style SH-5511, therefore, the most important assembly process
occurs in China, where the front panel, the back panel, and the
bottom panel with gussets are sewn together.
In HQ 959842, issued October 29, 1996, we determined the
country of origin of a backpack similar to style SH-0003, whose
panels were more complex than those of style SH-5511 (i.e., more
pockets, suede pieces, an organizer, etc.), to be the country in
which the panels were assembled. Although style SH-0003 contains
no suede pieces, the most important assembly process occurs in
Taiwan, where each of the three panels, particularly the front
panel (including the large zippered pocket with embroidered
"North Crest" logo; the fabric loop with key ring; the organizer
with zippered pocket, slot pockets, and pen pockets; the extra
main compartment, and the zipper, buckle, and elastic), is sewn
together.
With regard to styles SH-0005 and SH-6615, the most
important assembly process also occurs in Taiwan. There, for
style SH-0005, the body panel (including the front panel with
zippered pocket and embroidery), suede bottom panel, and the back
panel (with shoulder straps and webbing) are sewn together to
comprise the first component; and the gussets with zipper and two
suede pieces are sewn together to comprise the second component.
For style SH-6615, Taiwan is where the front panel (including
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zippered pocket with embroidery and suede piece) is sewn
together, the back panel (with straps, webbing, and buckle) is
sewn together, and the bottom panel (with two suede pieces,
gussets and zipper) is sewn together.
With respect to style SH-0006, we find that the assembly of
each of the three panels in Taiwan, particularly the front panel
(including the drawstring insulated pocket with grommets, the
zippered pocket with external mesh zippered pocket, the
embroidery, zipper, and buckle), is equal in importance to the
assembly process which occurs in China, where the front panel,
the back panel, and the bottom panel with gussets are sewn
together. Since for style SH-0006, the single country,
territory, or insular possession in which the most important
assembly or manufacturing process occurred cannot be determined,
section 102.21(c)(4) is not applicable.
Section 102.21(c)(5) states that "Where the country of
origin of a textile or apparel product cannot be determined under
paragraph (c)(1), (2) or (3) or (4) of this section, the country
of origin of the good is the last country, territory, or insular
possession in which an important assembly or manufacturing
process occurred."
For style SH-0006, the last country in which an important
assembly process occurred is China, in which the front panel, the
back panel, and the bottom panel with gussets are sewn together.
HOLDING:
The country of origin of the two backpacks identified by
style numbers SH-5511 and SH-0006, is China.
The country of origin of the three backpacks identified by
style numbers SH-0003, SH-0005, and SH-6615, 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 19 CFR
177.9(b)(1), which states that each ruling letter is issued on
the assumption that all of the information furnished and
incorporated in the ruling letter, either directly, by reference,
or by implication, is accurate and complete in every material
respect.
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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. A change in the facts previously furnished may
affect the determination of country of origin. Thus, if there is
any change in the facts provided to Customs, it is recommended
that a new ruling request be submitted in accordance with 19 CFR
177.2.
Sincerely,
John Durant, Director
Commercial Rulings Division