CLA-2 RR:CR:TE 961056 RH
Edward L. Hart, Jr.
Import Manager
V. Alexander & Co., Inc.
P.O. Box 30250
Memphis, TN 38130-0250
RE: Classification of finished and partially finished golf bags;
heading 4202;
heading 6307; country of origin marking; 19 C.F.R 102.21
Dear Mr. Hart:
This is in reply to your letter dated August 15, 1997, on behalf of
Arnold Palmer Golf Company, requesting a ruling on the
classification and marking of unfinished and partially unassembled
golf bags.
You sent a sample of the golf bag components to aid us in our
determination.
FACTS:
The merchandise at issue is a partially unassembled or unfinished
vinyl and nylon golf bag (UPUGB, style 854), made up of a body
sleeve, organizer top assembly, sling, top boot, clip, hoods,
bottom boot and D-ring. These components will be produced in China
and sent to the United States to be assembled with U.S.-origin
components (plastic bottom, poly tube body liner, rivets and a
metal D-clip) into a finished golf bag.
ISSUES:
What is the classification of the body sleeve and the remaining
Chinese components when entered into the United States in the same
shipment? What is the classification of these components when
entered separately?
What are the marking requirements under both scenarios?
- 2 -
LAW AND ANALYSIS:
Classification of goods under the Harmonized Tariff Schedule of the
U.S. Annotated (HTSUSA), is governed by the General Rules of
Interpretation (GRIs). GRI 1 provides that classification shall be
determined according to the terms of the headings and any relative
section or chapter notes. Where goods cannot be classified solely
on the basis of GRI 1, the remaining GRIs will be applied, in the
order of their appearance.
Heading 4202, HTSUSA, provides in part for travel, sports and
similar bags. The Explanatory Notes (EN) to heading 4202, at page
613, indicate that golf bags are regarded as sports bags for the
purposes of that heading.
GRI 2(a) states that:
Any reference in a heading to an article shall be taken
to include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete or
unfinished article has the essential character of the
complete or finished article. It shall also include a
reference to that article complete or finished (or
falling [sic] to be classified as complete or finished by
virtue of this rule), entered unassembled or
disassembled.
The first part of GRI 2(a) extends the scope of an article
provision to cover not only the complete article, but also that
article incomplete or unfinished, provided that, as presented,
it has the essential character of the complete or finished
article. See Explanatory Note (I) to GRI 2(a). The second part
of the rule provides that an article presented unassembled is
classified in the same heading as the assembled article. See
Explanatory Note (V) to GRI 2(a). In addition, an unfinished
article possessing the essential character of the finished
article remains classifiable as the finished article when
presented unassembled. See Explanatory Note (VI) to GRI 2(a).
In one of the scenarios you propose, the body sleeve and the
remaining components are entered together. The imported body
sleeve and other components are dedicated for use in, and
possess the approximate shape or outline of, the finished golf
bag. Moreover, we find that the imported components are
indispensable to the structure of the final product and include
the most important constituent materials in relation to the use
of the goods. Thus, when presented together, the body sleeve
and the remaining imported components are classified as an
unfinished sports bag of heading 4202, HTSUSA.
- 3 -
In another scenario, the body sleeve and the remaining
components are imported in separate shipments. In Headquarters
Ruling Letter (HQ) 085391, dated December 20, 1989, we
determined that a golf bag body did not possess the essential
character of the finished article when imported individually.
Accordingly, it was classified according to its constituent
materials. Similarly, in HQ 959178, dated June 24, 1996, we
held that a golf bag body imported separately from its remaining
components was classifiable according to its constituent
materials in heading 6307. As the instant body sleeve is
substantially similar to the goods at issue in HQ 959178, we
conclude that it is classifiable in heading 6307, HTSUSA, which
is the residual provision for articles of textiles. In
addition, we find that the remaining components, when imported
without the body sleeve, do not possess the essential character
of the finished article. Therefore, they shall also be
classified according to their constituent materials. The
organizer top assembly, sling, top boot, clip, hoods and bottom
boot are classifiable under subheading 6307.90.9989, HTSUSA.
The D-ring is classifiable under subheading 7326.90.8585,
HTSUSA.
Country of Origin Marking
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304), provides that unless excepted, every article of foreign
origin imported into the U.S. shall be marked in a conspicuous
place as legibly, indelibly, and permanently as the nature of
the article (or its container) will permit, in such a manner as
to indicate to the ultimate purchaser in the U.S. the English
name of the country of origin of the article. Part 134, Customs
Regulations (19 C.F.R. Part 134), implements the country of
origin marking requirements and exceptions of 19 U.S.C. 1304.
Section 134.1(d), Customs Regulations (19 C.F.R. 134.1(d)),
provides that the "ultimate purchaser" is generally the last
person in the U.S. who will receive the article in the form in
which it was imported. If an imported article will be used in
manufacture, the manufacturer may be the ultimate purchaser if
he subjects the imported article to a process which results in
a substantial transformation of the article. In that situation,
the manufactured article, as a good of the U.S., is excepted
from country of origin marking and only the outermost container
of the imported article must be marked with the article's
origin. See section 134.35(a), Customs Regulations (19 C.F.R.
134.35(a)).
Under the facts presented in your letter, China is the country
of origin of all of the components entered into the United
States as they are wholly produced in China (made in China from
Chinese components). To determine whether the Chinese-origin
golf bag components in the two scenarios in this case become
goods of the U.S. when assembled to create finished golf bags,
it is necessary to refer to the rules of origin for textile and
apparel products set forth in section 102.21, Customs
Regulations (19 C.F.R. 102.21). Pursuant to the Uruguay Round
Agreements Act, these new rules of origin (published in the
Federal Register on September 5, 1995, 60 Fed. Reg. 46188)
became effective for textile or apparel products entered, or
withdrawn from warehouse for consumption, on or after July 1,
1996. The country of origin of a textile or apparel product is
determined by a hierarchy of rules set forth in paragraphs
(c)(1) through (c)(5) of section 102.21.
- 4 -
A "textile or apparel product" for purposes of these rules of
origin is defined in 19 C.F.R. 102.21(b)(5) as any good
classifiable in Chapters 50 through 63, HTSUSA, as well as goods
classifiable in certain additional provisions, including
subheading 4202.92.30, HTSUSA. Therefore, the 19 C.F.R. 102.21
rules of origin are applicable to the imported articles subject
to this case.
Section 102.21(c)(1) sets forth the general rule for determining
the country of origin of a textile or apparel product in which
the good is wholly obtained or produced in a single country,
territory, or insular possession.
Section 102.21(c)(1) is not applicable because the subject
merchandise is not wholly obtained or produced in a single
country, territory, or insular possession. Accordingly, we turn
to Section 102.21(c)(2) which provides that where the country of
origin cannot be determined under paragraph (c)(1), the country
of origin of the good is the single country 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 19 C.F.R. 102.21(e). As
discussed above, the finished golf bag under consideration here
is classified in subheading 4202.92.3030, HTSUSA. Therefore,
the applicable rule in 19 C.F.R 102.21(e) is as follows:
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.
In this case, the requisite tariff shift is not met because the
assembly of the golf bag takes place in more than a single
country (i.e., in China and the United States). Accordingly, we
continue in our hierarchical application of Section 102.21(c).
Section 102.21(c)(3) governs instances where country of origin
of a textile or apparel product cannot be determined pursuant to
paragraphs (c)(1) or (c)(2) and provides:
(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.
- 5 -
Section 102.21(c)(3) is inapplicable in this case because the
subject merchandise is neither knit to shape nor wholly
assembled in a single country.
Section 102.21(c)(4) provides "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 HQ 959179, we held that the country of origin of a golf bag
was where the golf bag body (including the hardware and zippers)
was assembled. In a second country, the bottom, top cuff and
internal tube support were assembled to complete the golf bag.
The assembly operations in this case are substantially similar
to HQ 959179. In China, the body sleeve (including zippers and
hardware) is assembled and shipped to the United States along
with the organizer top assembly, sling, top boot, clip, hoods,
bottom boot and D-ring. In the U.S., the plastic bottom, poly
tube body liner, rivets and a metal D-clip are assembled with
the imported components to complete the golf bag. Accordingly,
as in HQ 959178, the most important assembly operation in this
case transpires in China, where the majority of the golf bag
body is assembled to completion. Accordingly, the origin of the
completed golf bag under both scenarios is China, and it must be
individually marked to so indicate to the ultimate purchaser.
You asked by telephone whether the imported golf bag components
must be individually marked with their origin or whether the
container in which they are imported may be marked with the
components' origin. In this regard, section 134.32(d), Customs
Regulations (19 C.F.R. 134.32(d)), exempts from the marking
requirements those articles for which the container will
reasonably indicate the origin of the articles. Therefore,
provided the Chinese-origin golf bag components are imported in
properly marked containers and the certification set forth in
section 134.26, Customs Regulations (19 C.F.R. 134.26), is
executed, the components are not required to be individually
marked at the time of importation. However, the fully assembled
golf bags must be individually marked to indicate` to the
ultimate purchaser that their origin is China.
HOLDING:
The imported Chinese-origin body sleeve and remaining
components, when presented together, are classifiable under
subheading 4202.92.3030, HTSUSA, which provides for travel,
sports and similar bags: with outer surface of textile
materials: other, other: of man-made fibers: other. They are
dutiable at the general column one rate at 19 percent ad
valorem. The textile category is 670.
- 6 -
When imported separately, the Chinese-origin body sleeve,
organizer top assembly, sling, top boot, clip, hoods and bottom
boot are classifiable under subheading 6307.90.9989, HTSUSA,
which provides for other made up articles, including dress
patterns: other: other: other, other: other. The applicable
rate of duty is 7 percent ad valorem. The D-ring is
classifiable under subheading 7326.90.8585, HTSUSA, and is
dutiable at the general one column rate of 3.5 percent ad
valorem.
As determined under 19 C.F.R. 102.21, the country of origin of
the completed golf bag is China, and it must be marked
accordingly.
The designated textile and apparel category may be subdivided
into parts. If so, visa and quota requirements applicable to
the subject merchandise may be affected. Since part categories
are the result of international bilateral agreements which are
the subject of frequent negotiations and changes, to obtain the
most current information available, we suggest that you check,
close to the time of shipment, the Status Report on Current
Import Quotas (Restraint Levels), an issuance of the U.S.
Customs Service, which is updated weekly and is available at the
local Customs office.
Due to the changeable nature of the statistical annotation (the
ninth and tenth digits of the classification) and the restraint
(quota/visa) categories, you should contact the local Customs
office prior to importing the merchandise to determine the
current status of any import restraints or requirements.
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 C.F.R. 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.
Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 C.F.R.
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 C.F.R. 177.2.
Sincerely,
John Durant, Director
Commercial Rulings Division