CLA 2-RR:NC:3:353 F84383
Mr. Paul Willette
Tower Group International
2400 Marine Avenue
Redondo Beach, CA 90278-1103
RE: Classification, country of origin and country of origin marking determination for a graduation cap and gown; 19 CFR 102.21(c)(2); tariff shift; Article 509.
Dear Mr. Willette:
This is in reply to your letter dated March 8, 2000, on behalf of Jostens Corporation, requesting a classification, country of origin and country of origin marking determination for a graduation cap and gown which will be imported into the United States. A detailed step-by-step description of the manufacturing process was supplied, as well as samples of all component parts prior to assembly and the finished products.
FACTS:
The subject merchandise consists of a “One Way” Graduation Cap and Gown. The “One Way” BDG Graduation Cap and Gown are composed of woven 100% textured polyester fabric; the “One Way” Treasure Graduation Cap and Gown are composed of woven 100% acetate taffeta fabric. The graduation cap, or mortarboard, features a two panel lined crown with a 9½ inch square flat top with a fabric covered button. The graduation gown is full length and features a pleated front, long sleeves and full front zippered closure.
Presently the fabric for the cap and gown is formed in the United States. The fabric is cut to shape and shipped with other components that are purchased in the United States to Mexico. In Mexico, the components are fully assembled and packed before being returned to the U.S.
The manufacturing operation is being changed as follows:
“One Way” Graduation Cap
United States
Fabric is formed
Mexico
Fabric is cut to shape
The Mexican manufacturer obtains components (countries of origin not yet known) - glue, masking tape, aluminum button, elastic, wonder thread, polyester thread, pivot tack, cap disk, bleached cap mortarboard, kraft mortarboard and interlining
Cut to shape parts and components are completely assembled
Finishing, bagging and boxing
“One Way” Graduation Gown
United States
Fabric is formed
Mexico
Fabric is cut to shape
The Mexican manufacturer obtains components (countries of origin not yet known) - zipper, label and thread
Cut to shape parts and components are completely assembled
Finishing, bagging and boxing
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the “One Way” Graduation Cap will be 6505.90.8090, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed…: Other: Of man-made fibers: Not in part of braid, Other: Other: Other.” The rate of duty will be 20¢ per kilogram + 7.3% ad valorem.
The applicable subheading for the “One Way” Graduation Gown will be 6211.43.0091, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Track suits, ski-suits and swimwear; other garments: Other garments, women's or girls': Of man-made fibers, Other.” The rate of duty will be 16.4% ad valorem.
The “One Way” Graduation Cap and Gown fall within textile category designation 659. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.GOV. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.
COUNTRY OF ORIGIN - 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 materials 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) in pertinent part 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:”
HTSUS Tariff shift and/or other requirements
6505.90 (1) If the good consists of two or more components, a change to subheading 6505.90 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.
HTSUS Tariff shift and/or other requirements
6210–6212 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6210 through 6212 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
As the graduation cap and gown are wholly assembled in a single country, that is, Mexico, as per the terms of the tariff shift requirement, country of origin is conferred in Mexico.
COUNTRY OF ORIGIN MARKING
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) 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 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
The country of origin marking requirements for a “good of a NAFTA country” are also determined in accordance with Annex 311 of the North American Free Trade Agreement (“NAFTA”), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.
Section 134.45(a)(2) of the regulations, provides that “a good of a NAFTA country may be marked with the name of the country of origin in English, French or Spanish.” Section 134.1(g) of the regulations, defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
You ask whether the proposed marking “Made in Mexico” or “Assembled in Mexico” is an acceptable country of origin marking for the imported graduation cap and gown. A sample with the proposed marking was not submitted with your letter for review.
Regarding the term “assembly,” section 10.14(a), Customs Regulations (19 CFR 10.14(a)), provides, in part, that “…The components must be in condition ready for assembly without further fabrication at the time of their exportation from the United States…” Section 10.16(a), Customs Regulations (19 CFR 10.16(a)), provides, in part, that “The assembly operations performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fasteners…”
The U.S. origin fabrics used to make the graduation cap and gown are cut to shape in Mexico. Therefore, they are not exported in condition ready for assembly without further fabrication; the U.S. fabric is not considered assembled in Mexico. The merchandise does not meet the requirements for marking of assembled articles under section 134.43(e), Customs Regulations, (19 CFR 134.44(e)). Therefore, “Assembled in Mexico” is not an acceptable country of origin marking for the imported cap and gown. However, “Made in Mexico” is an acceptable country of origin marking for the imported graduation cap and gown.
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.
This ruling is being issued under the provisions of Part 177 and 181 of the Customs Regulations (19 CFR 177 and 181). 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.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kenneth Reidlinger at 212-637-7084.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division