CLA-2 RR:TC:TE 959462 jb
Lisa C. Schneider
Associated Customhouse Brokers, Inc.
P.O. Box 22670
Rochester, NY 14692-2670
RE: Country of origin determination for tents; 19 CFR
102.21(c)(2); tariff shift
Dear Ms. Schneider:
This is in reply to your letter dated June 3, 1996, on
behalf of your client, Johnson Worldwide Associates, requesting a
country of origin determination for certain tents which will be
imported into the United States.
FACTS:
The subject merchandise consists of backpacking and family
tents composed of man-made fibers. The manufacturing operations
are as follows:
Scenario I
Backpacking Tents
TAIWAN
- fabric for floor, walls and ceiling is formed.
CHINA
- cutting;
- sewing;
- assembly.
Scenario II
Backpacking and Family Tents
SOUTH KOREA
- fabric for floor, walls and ceiling is formed.
CHINA
- cutting;
- sewing;
- assembly.
Scenario III
Backpacking and Family Tents
SOUTH KOREA
- fabric for floor, walls and ceiling is formed.
SRI LANKA
- cutting;
- sewing;
- assembly.
Scenario IV
Backpacking and Family Tents
SOUTH KOREA
- fabric for floor, walls and ceiling is formed.
INDONESIA
- cutting;
- sewing;
- assembly.
ISSUE:
1. What is the country of origin of the subject merchandise?
2. What is the proper marking of the subject merchandise?
3. Whether the tents are eligible for the Generalized System
of Preferences (GSP) in scenarios III and IV?
4. From which country should the visa be obtained, for
scenarios II through IV?
LAW AND ANALYSIS:
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act (hereinafter 19 U.S.C. 3592).
Section 334 of that Act 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and apparel entered, or withdrawn from warehouse, for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, in
any of the four scenarios, 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 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":
6301-6306 The country of origin of a
good classifiable under heading
6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making
process.
The subject tents are classified in heading 6306, Harmonized
Tariff Schedule of the United States (HTSUS). As the fabric-making process in each of the above stated scenarios occurs in a
single country, the tariff shift rule is applicable. In the case
of scenario I country of origin is conferred by the single
country where the fabric making occurs, that is, Taiwan. In
scenarios II, III and IV, country of origin is conferred by the
single country where the fabric making occurs, that is, South
Korea.
You ask in your letter whether the proposed markings are
consistent with the origin rules set forth in section 102.21,
Customs Regulations, and with the country of origin marking
requirements in Part 134, Customs Regulations: in the case of
scenario I, "Assembled in China from Taiwan fabrics"; in the case
of scenario II, "Assembled in China from South Korean fabrics";
in the case of scenario III, "Assembled in Sri Lanka from South
Korean fabrics"; in the case of scenario IV, "Assembled in
Indonesia from South Korean fabrics". The above proposed
markings are not consistent with the origin rules set forth in
section 102.21, Customs Regulations, nor with the country of
origin marking requirements in Part 134, Customs Regulations. An
acceptable marking for these products is "Made in Taiwan" or
"Taiwan", in the case of scenario I, and "Made in South Korea" or
"South Korea", in the case of scenarios II, III and IV.
HOLDING:
The country of origin of the backpacking tents in scenario I
is Taiwan.
The country of origin of the backpacking and family tents in
scenarios II, III and IV is South Korea and will require a South
Korea visa.
Although Sri Lanka and Indonesia are designated beneficiary
developing countries for the purposes of the Generalized System
of Preferences (GSP), as provided for in Title V of the Trade Act
of 1974, as amended (19 U.S.C. 2461 et seq), the country of
origin of the tents in scenarios III and IV has been determined
to be South Korea. As such, the backpacking tents are not
eligible for preferential duty treatment.
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.
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
Tariff Classification Appeals
Division