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effective for textile products entered, or withdrawn from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