CLA-2 RR:TC:TE 959669 jb
Edward Fandino
Pronto Cargo Brokers, Inc.
7330 N.W. 66th Street
Miami, Florida 33166-3009
RE: Country of origin determination for a nylon sports bag; 19
CFR 102.21(c)(4); most important assembly or manufacturing
process
Dear Mr. Fandino:
This is in reply to your letter dated July 30, 1996, on
behalf of your client, Excel Handbags Co., Inc., requesting a
country of origin determination for a nylon sports bag which will
be imported into the United States.
FACTS:
The merchandise at issue consists of a nylon sports bag,
referenced style number 5682, featuring a main body component and
two gusset pockets (resembling side saddles) which are placed on
either side of the main body of the bag. The manufacturing
process is as follows:
TAIWAN
- material is sourced (polyester nylon fabric for the outer
shell, zipper, leather for the handles, decorative woven
patch for the front panel, and polypropylene nylon webbing for
the straps);
- fabric is cut into component pieces;
- panels for the main body of the bag are joined together
(that is, the top, bottom, front and back panels), including
zipper, to form an empty tube (there are no side panels);
decorative woven patch is sewn to front panel;
- leather handles are sewn in rolls; polypropylene webbing
straps are cut and sew onto back panel of main body of bag;
- polypropylene webbing straps are cut to size and sewn into
gusset pocket panels;
- panels of gusset pockets are sewn together, including
zipper, to create "side saddles";
- cardboard panel is cut and wrapped with PVC sheet and sewn
into the inside of the main bag.
CHINA
- main body of bag and two gusset pocket panels are sewn
together;
- loose threads are cut;
- pack in polybags.
ISSUE:
What is the country of origin of the submitted merchandise?
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apparel entered, or withdrawn from warehouse, for consumption, on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 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":
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 subject merchandise is classified in subheading
4202.92.3030, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). As the subject nylon sports bag is not
wholly assembled in a single country, the terms of the tariff
shift are not met.
Section 102.21(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;
(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 single country, territory,
or insular possession in which the good was wholly
assembled.
As the subject merchandise is neither knit nor wholly assembled
in a single country, Section 102.21(c)(3) is inapplicable.
Section 102.21(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 of the subject merchandise, the
most important assembly process occurs at the time in which the
panels for the main body of the bag are joined together, the
handles and the webbing straps are created and the gusset pockets
are created, in Taiwan.
HOLDING:
The country of origin of the subject nylon sports bag,
referenced style number 5682, is Taiwan.
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, 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