CLA 2 RR:CR:TE 962313 jb
Susan Kohn Ross
S.K. Ross & Associates, P.C.
5777 West Century Blvd., Suite 520
Los Angeles, CA 90045-5659
RE: Classification of finished and partially finished golf bags; heading 4202; heading 6307; country of origin marking; 19 C.F.R. §102.21
Dear Ms. Ross:
This is in reply to your letter dated June 29, 1998, and supplemental submission, dated September 2, 1998, on behalf of your client, Bennington Golf Company, requesting a ruling on the classification and marking of unfinished and partially unassembled golf bags. Samples of the golf bags in their unfinished condition were submitted to this office for examination and will be returned under separate cover.
FACTS:
The subject merchandise, referenced as styles BB-FO, BB-P and BB-RK, consists of three styles of golf bags made of man-made textile materials with plastic tops and bottoms, trim and metal or plastic hardware. Although the three styles vary in features, you indicate that in all instances the body panel or sleeves will be imported separately from the remaining components, that is, the hoods, shoulder straps, divider panels, top and bottom cuffs and where applicable, the fur tops. You emphasize that the body panels and remaining components are not imported on the same vessel or in the same shipments.
Additionally, you indicate that the manufacturing operations for the subject merchandise are as follows:
China
flat body panels or sleeves (i.e., not sewn in cylindrical shape) are fully manufactured (i.e., cut and sewn from textile materials) including pockets and zippers
component parts are produced, including hoods, shoulder straps, divider panels, top and bottom cuffs, and fur tops (where applicable)
United States
“assembly parts” are produced, including, tube sheet, rivets, hang tag, logo plate, insert and carton box
body panel, component parts, and assembly parts are combined to make the finished golf bags
ISSUES:
1. What is the classification of the body panels or sleeves?
2. What are the marking requirements for the body panels and separate components?
3. What are the marking requirements for the completed golf bags?
LAW AND ANALYSIS:
Classification
Classification of goods under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), is governed by the General Rules of Interpretation (GRI). 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, HTSUS, provides in part for travel, sports and similar bags. The Explanatory Notes (EN) to heading 4202, at page 661, 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 to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
Accordingly, 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).
It is clear that when the body sleeves and the remaining components are entered together, they are dedicated for use in, and possess the approximate shape or outline of, the finished golf bags. Thus, when presented together, the body sleeves and the remaining imported components are classified as unfinished sports bags of heading 4202, HTSUS. In the case of the subject merchandise however, you emphasize that the body panels and remaining components are not imported on the same vessel or in the same shipments, but imported separately. 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, HTSUS. As the instant body sleeves are substantially similar to the goods at issue in HQ 959178, they are classifiable in heading 6307, HTSUS, which is a basket provision for textile articles which are not more specifically provided for elsewhere in the tariff. See also, HQ 958915, dated February 27, 1996, HQ 961056, dated February 11, 1998, and HQ 960883, dated April 27, 1998.
Country of Origin
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.
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, HTSUS, as well as goods classifiable in certain additional provisions, including subheading 4202.92.30, HTSUSA. As the body sleeves and remaining components, when imported separately, are classified in subheading 6307.90, HTSUSA, and when imported together, are classified in subheading 4202.90.30, HTSUSA, the 19 C.F.R. §102.21 rules of origin are applicable to the instant golf bags.
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.” In the case of the body sleeves and the remaining components which are imported separately, these components are wholly obtained or produced in China, and as such the country of origin of this merchandise is China.
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:”
As discussed above, the subject merchandise is classified in subheading 4202.92.3031, HTSUSA, in its completed state. 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.
The tariff shift rule for subheading 4202.92, HTSUSA, states that country of origin is conferred in the single country where assembly occurs. As the subject merchandise is assembled in more than a single country (i.e., in China and the United States), the tariff shift is not met. Accordingly, we proceed to 102.21(c)(3).
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.
As the subject merchandise is neither knit to shape nor wholly assembled in a single country, paragraph (c)(3) is inapplicable.
Paragraph (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 finished golf bags, the most important assembly operation occurs in China, as it is in this country that the majority of the golf bag body is assembled into completion. This finding is consistent with past Customs rulings that have held the critical assembly operation for purposes of origin, occurs in the country in which the main body panel is assembled. Accordingly, the origin of the completed golf bags is China. See HQ 959178, and HQ 961056.
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)).
In the case of the subject merchandise, 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). You inquire whether the separately imported golf bag body panels and 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 subject golf sleeve body panels are properly classified in subheading 6307.90.9989, which provides for other made up articles, including dress patterns: other: other: other: other: other. The applicable general column one rate of duty is 7 percent ad valorem.
The country of origin of the completed golf bags is China and they should 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 subject to frequent negotiations and
changes, we suggest that your client 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, your client 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 section 19 CFR 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished 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 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