CLA-2 RR:TC:TE 959537 CAB

Leonard L. Rosenberg, Esq
Sandler, Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, FL 33126-2022

RE: Country of origin of a tote bag; Section 102.21(c)(4), Customs Regulations

Dear Mr. Rosenberg:

This is in response to your inquiry of July 25, 1996, requesting a country of origin ruling for a tote bag pursuant to Section 102.21, Customs Regulations. This inquiry is on behalf of your client, Jaclyn, Inc. A sample was submitted for examination and will be returned to you under separate cover.

FACTS:

The merchandise at issue is referred to as Style 7606. Style 7606 is a woven denim tote bag that is approximately 17 inches in height, 21 inches across, and 6 « inches in width. The bag is constructed of woven cotton denim material with PVC handles and logo. The bag contains a top zipper and a front pocket with a zipper closure.

The manufacturing of the bag will occur in both China and Taiwan. However, you request that since the actual countries of production are subject to change, that hereafter we refer to the countries of production as Country "A" and Country "B". The manufacturing process is as follows:

1. Cut material into parts and merrow each panel 2. Sew PVC logo on pocket panel 3. Sew zipper to pocket panel and backing 4. Sew PVC handle with braided filler inside 5. Sew panels together to create front panel assembly 6. Sew PVC tabs onto front and back panels 7. Sew top zipper to front and back body panels; attach top zipper pull; and, sew bottom panel to front panel assembly 8. Sew bottom panel to back panel to create body panel 9. Connect body and side gussets 10. Sew in country of origin label 11. Wash bag and iron bag 12. Rivet handles through PVC tabs 13. Cut loose thread/clean and pack in polybags/export cartons.

SCENARIO 1

Country "A" Operations 1-6 Country "B" Operations 7-13

SCENARIO 2

Country "A" Operations 1-7 Country "B" Operations 8-13

ISSUE:

What is the country of origin of the subject bag in Scenarios 1 and 2?

LAW AND ANALYSIS:

Pursuant to Section 334 of the Uruguay Round Agreements Act (codified at 19 USC Section 3592), new rules of origin were effective for textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.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 Section 102.21), sets forth the general rules to determine country of origin. Thus, 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. Section 102.21(c)(1) sets forth the general rule for determining the country of origin of a textile or apparel product when the good was wholly obtained or produced in a single country, territory, or insular possession. As the subject tote bag has not been wholly obtained or produced in a single country, territory, or insular possession, this section is inapplicable. Section 102.21(c)(2) provides for instances where the country of origin of a textile or apparel product cannot be determined under Section 102.21(c)(1).

Section 102.21(c)(2) provides, in pertinent part:

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.

Section 102.21(e) provides, in pertinent part: Specific rules by tariff classification. 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:

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 subject tote bag is classifiable in subheading 4202.92.15 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for among other articles, travel, sports and similar bags, with outer surface of textile materials. Section 102.21(c)(2) is not applicable to the instant merchandise as the bag is not wholly assembled in a single country.

Section 102.21(c)(3) provides for goods that have been wholly assembled (with certain enumerated exceptions) in a single country, insular possession, or territory or which are knit to shape. Section 102.21(c)(3) is therefore inapplicable to the subject merchandise as it has not been wholly assembled in a single country, insular possession, or territory, nor is it a knit to shape good.

Section 102.21(c)(4) provides the first multi-country rule. Section 102.21(c)(4), states the following:

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 this case, in order to create the major panel components, multiple fabric pieces are joined together. The creation and connecting of these major panels in Country "B" in Scenario 1 and Country "A" in Scenario 2 result in an identifiable, albeit unfinished tote bag. Thus, the most important manufacturing operations in accordance with Section 102.21(c)(4) occur in Country "B" in Scenario 1 and Country "A" in Scenario 2. This ruling is consistent with recent Headquarters Ruling Letter (HRL) 958626, issued to you on May 2, 1996, where you submitted several bags (including a tote bag) to Customs for country of origin determinations under a multitude of similar manufacturing scenarios.

HOLDING:

In Scenario 1, the country of origin of Style 7606 is Country "B". In Scenario 2, the country of origin of Style 7606 is Country "A".

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 the 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
Tariff Classification Appeals
Division