CLA-2 RR:TC:TE 960991
Arthur K. Purcell, Esq.
Neville, Peterson & Williams
80 Broad Street, 34th Floor
New York, NY 10004
RE: Country of origin of an infants's bib; 19 CFR 102.21(c)(4);
most important assembly
or manufacturing operation; cutting and sewing in same
country; piping; bias tape;
hook and loop fastener
Dear Mr. Purcell:
This is in reply to your letter dated August 29, 1997 (your file
818-01), requesting a ruling on behalf of Hamco, Inc., concerning
the country of origin of an infant's bib.
You submitted a sample of the bib in two stages of production
referenced as Exhibit "A" and Exhibit "B."
FACTS:
Two countries participate in the production of the infant's bib.
The bib is constructed of 75 percent cotton and 25 percent
polyester terry woven fabric. The fabric is formed in China and
cut into two panels in the shape of the bib. Embroidery and/or
applique work depicting a "teddy bear or other whimsical
character" is secured to the front panel. Next, hook and loop
fasteners similar to the VELCRO brand are sewn through both
panels of the bib where it fits around the infant's neck. At
this stage, the two panels are securely joined. Exhibit "A"
represents the production in China.
The bib is then sent to Hong Kong where edges of the two panels
are sewn together with color coordinated bias tape. The bibs are
attached to a header card and packaged for shipment to the United
States. Exhibit "B" portrays this stage of production.
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ISSUE:
What is the country of origin of the infant's bib produced in
China and Hong Kong?
LAW AND ANALYSIS:
Pursuant to Section 334 of the Uruguay Round Agreements Act
(codified at 19 U.S.C. 3592), new rules of origin were effective
for textile products entered, or withdrawn from warehouse, for
consumption, on and 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 102.21),
sets forth the general rules to determine country of origin. 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.
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
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." Classification of the infant's bib is under subheading
6209.20.5050 of the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA).
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":
6209.20.5045-6209.90.9000 (1) If the good consists of
two or more component
parts, a change to an
assembled good of
subheading [6209.20.5045
through 6209.90.9000]
from unassembled
components, provided that
the change is the result
of the good being wholly
assembled in a single
country, territory, or
insular possession.
(2) If the good does not consist
of two or more component
parts, a change to subheading
6209.20.5045 through
6209.90.9000 from any other
heading, except from heading
5007, 5111, through 5113, 5208
through 5212, 5309 through
5311, 5407
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through 5408, 5512 through 5516, 5602
through 5603, 5801 through 5806, 5809
through 5811, 5903, 5906 through 5907
and 6217, and subheading 6307.90, and
provided that the change is the result
of a fabric-making process.
In this case, the bib consists of two or more component parts,
but it is not wholly assembled in one country. Thus, paragraph
(c)(2) is not applicable.
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 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.
The bib is not knit to shape and, as stated above, it is not
wholly assembled in a single country. Therefore, the country of
origin cannot be determined under paragraph 3(c).
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." Counsel asserts that the most important assembly and
manufacturing processes occur in Hong Kong where the two panels
are joined together by sewing. He argues that this transforms
mere cut and shaped fabric pieces into a recognizable, useable
and saleable bib.
We disagree with counsel. The most important processes occur in
China where the fabric is manufactured, cut into the shape of the
bib and joined together at the neck with hook and loop
fasteners. As evidenced by Exhibit A, the identity and character
of the bib are established at this stage of production. In Hong
Kong, stitching the bias tape along the edges of the bib is a
relatively minor finishing operation. Moreover, we note that in
examining Exhibit B it appears that the bias tape was sewn onto
the bib before the hook and loop fasteners were attached, since
part of the tape is tucked under the completely sewn hook and
loop pieces.
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HOLDING:
The country of origin of the infant's bib is China, pursuant to
Section 102.21(c)(4), the country in which the most important
manufacturing and assembly operations occurred.
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
Commercial Rulings Division