CLA-2 RR:TC:TE 959842 jb

Joel G. McClure
American Overseas Air Freight, Inc.
320 Beach Road
Burlingame, California 94010

RE: Country of origin determination for expandable school bag, backpack, carry-all lunch bag, and two travel bags; 19 CFR 102.21(c)(4); most important assembly or manufacturing process

Dear Mr. McClure:

This is in reply to your letter dated September 19, 1996, on behalf of Ampac Enterprise, requesting a country of origin determination for a school bag, backpack, carry-all lunch bag, and two travel bags, to be imported into the United States. Samples were submitted to this office for examination.

FACTS:

The submitted merchandise consists of a number of styles of carrying cases manufactured in Taiwan and China. For all of the subject merchandise the various components used in the assembly operations are sourced in Taiwan. The thread used in the assembly operations is sourced in China. Style number AM93-3010, is an expandable school bag measuring 15 inches by 7 inches by 12 inches and features an outer surface of woven man-made fiber fabric with a PVC lining. The bag has a polypropylene shoulder strap which is attached to the sides of the bag by way of two metal buckles, a backstrap, flap pocket, and zippered flap pocket at the back of the bag, and handles on top of the bag. The bag also features a PVC embossed logo, an organizer inside a zippered flap pocket which is covered by a front flap secured by hook and loop type closures and two plastic buckles, and an all-around zipper opening. The manufacturing operations for the subject school bag are as follows:

CHINA - fabric is cut into component parts; - logo and buckles are sewn on to front flap;

- handles are sewn at the top of the bag; - backstrap is sewn to the back of the bag; -front flap, top and back panels, including zippers, are sewn together to form one large panel; lining is attached; - organizer and organizer cover and zipper are sewn to inside front panel; - lining is sewn to inside of the front panel; - expandable zipper is sewn on to gusset.

TAIWAN

- back panel, gusset and front panel are sewn together to create the body of the bag; - country of origin label is sewn; - inside of bag is trimmed and PVC binding is sewn; - bag is turned, loose threads are cut, bag is cleaned and packed in polybags and exported in cartons.

Style number AM93-6020 is a backpack measuring 13 inches by 6-1/2 inches by 17 inches and features an outer surface of woven man-made fiber fabric with a PVC lining. The backpack has a handle at the top of the bag, a padded backstrap and back panel, all around zipper opening for the top half of the bag, zippered pockets on both sides of the bag, a front gusseted pocket with a zipper opening and a flap pocket attached with an internal pen organizer, a PVC embossed logo at the front, and a suede leather bottom. The manufacturing operations are as follows:

CHINA

- fabric is cut into component parts; - logo, front flap, zipper of front pocket, organizer, front cover on front panel of front pocket are sewn; - gusset, front panel and zipper of front panel are sewn together to create gusset pocket; - front pocket is sewn to main body; - back straps are sewn and attached to back body; - foam and lining are sewn to back body; - four edges of side pockets are sewn together with zipper to create the side pockets; - handle is sewn at the top of the bag and suede pieces are sewn to the bottom of the bag; - two panels of gusset are sewn together with zipper in between.

TAIWAN

- side pockets are sewn to gusset; - front body, back body and bottom are sewn together; - country of origin label is sewn; - inside of bag is trimmed and PVC binding is sewn; - bag is turned, loose threads are cut, bag is cleaned and packed in polybags and exported in cartons.

Style number AM94-1020 is a carry-all lunch bag measuring 7-1/2 inches by 4 inches by 10-1/4 inches and features an outer surface of woven man-made fiber fabric with PVC lining. The lunch bag has a front flap closure attached to the main body of the bag and secured by hook and loop type closure. The bag features a PVC embossed logo and a zipper on the front flap, a main organizer underneath the front flap, a flat pocket at the back, two woven polypropylene loops at the back and a woven polypropylene adjustable shoulder strap. The opening of the bag, underneath the front flap, is secured by a zipper. The manufacturing operations are as follows:

CHINA

- fabric is cut into component parts; - logo and zipper are sewn on to front flap; - lining is sewn to front flap; - organizer is sewn and sewn on to the front panel; - back pocket and two loops are sewn to back panel; - zipper opening is sewn to side panel at top.

TAIWAN

- gusset panel is sewn to front and back panel with piping; - country of origin label is sewn; - inside of bag is trimmed and PVC binding is sewn; - bag is turned, loose threads are cut, bag is cleaned and packed in polybags and exported in cartons.

Style number AM94-9222 is a large travel bag measuring 20 inches by 11-1/2 inches by 13-1/2 inches and features an outer surface of woven man-made fiber fabric with PVC lining. The travel bag has a front-gusseted zippered pocket with a small flat mesh pocket, zippered pockets at both ends of the bag, double layered woven polypropylene handles with a plastic handle adjuster, an adjustable woven polypropylene shoulder strap, five stands at the bottom of the bag, a bottom board covered with PVC material and a PVC embossed logo on the woven polypropylene fabric stripe at the front of the body of the bag. The top of the bag is secured by a U-shaped zippered opening. The manufacturing operations are as follows:

CHINA

- fabric is cut into component parts; - U-shape zipper closure is sewn to the top of the bag; - double layer polypropylene handles and woven polypropylene fabric stripe are sewn on to the front and back panel; - embossed logo is sewn on to the front woven polypropylene fabric; - flat mesh pocket is sewn to the front pocket and zipper is sewn on to front pocket; - edges of side panels are sewn, with zipper; - inside lining is sewn to side panels to create the side pockets.

TAIWAN

- front gusset pocket is sewn to main body; - side pockets, that is, the sides of the bag, are sewn to main body by piping; - country of origin label is sewn; - inside of bag is trimmed and PVC binding is sewn; - bag is turned, loose threads are cut, bag is cleaned and packed in polybags and exported in cartons.

This bag also features a bottom board covered with PVC. Although you neither indicate where the bottom board is covered nor where it is inserted into the bag, this will not affect the outcome.

Style number AM95-9420, is a round shaped travel bag measuring 20 inches by 11 inches in diameter and features an outer surface made of woven man-made fiber fabric with PVC lining. The travel bag has a woven logo label at the front, a front flap pocket, a top opening secured by a zipper, woven polypropylene handles with a man-made fiber fabric handle adjuster and adjustable shoulder straps at both ends of the bag.

CHINA

- fabric is cut into component parts; - logo, front flap pocket and woven polypropylene handles are sewn on to the front panel; - zipper is sewn on to the top of the main panel.

TAIWAN

- left and right side panels are sewn together to front panel; - country of origin label is sewn; - inside of bag is trimmed and PVC binding is sewn; - bag is turned, loose threads are cut, bag is cleaned and packed in polybags and exported in cartons.

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":

4202.12.40-4202.12.80 A change to subheading 4202.12.40 through 4202.12.80 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.

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.

4202.92.60-4202.92.90 A change to subheading 4202.92.60 through 4202.92.90 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.

The subject merchandise is classified as follows: the expandable school bag is classified in subheading 4202.12.8030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), the backpack is classified in subheading 4202.92.3020, HTSUSA, the carry-all lunch bag is classified in subheading 4202.92.9025, HTSUSA, and the travel bags are classified in subheading 4202.92.3030, HTSUSA. As the subject merchandise 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 expandable school bag, the sewing of the logo and buckles on to the front flap, the sewing of the handles at the top of the bag, the sewing of the backstrap on to the back of the bag, the sewing together of the front flap, top and back panels including zippers to form one large panel, the attachment of the lining, the sewing of the organizer and organizer cover and zipper to front panel, the sewing of the lining to the inside of the front panel and the sewing of the expandable zipper on to the gusset, in China, constitutes the most important assembly process. Accordingly, the country of origin is China.

In the case of the backpack, the sewing together of the logo, front flap, zipper of front pocket, organizer, front cover on the front panel of the front pocket, sewing together of the gusset, front panel and zipper of front panel to create the gusset pocket, sewing of the front pocket to the main body, sewing of the back straps and attachment to the back body, sewing of the foam and lining to the back body, sewing together the four edges of the side pockets together with zipper to create the side pockets, the sewing of the handle at the top of the bag, the sewing of the suede pieces to the bottom of the bag, and the sewing together of the two panels of the gusset with the zipper in between, in China, constitutes the most important assembly process. Accordingly, the country of origin is China.

In the case of the carry-all lunch bag, the sewing of the logo and zipper on to the front flap, the sewing of the lining on to the front flap, the sewing of the organizer and attachment to the front panel, sewing of the back pocket and two loops to the back panel, and the sewing of the zipper opening, in China, constitutes the most important assembly process. Accordingly, the country of origin is China.

In the case of the large travel bag, the sewing of the U-shape zipper closure at the top of the bag, the sewing of the double layer polypropylene handles and polypropylene fabric stripe on to the front and back panel, the sewing of the embossed logo on to the front polypropylene fabric stripe, the sewing of the flat mesh pocket to the front pocket, sewing of zipper on to front pocket, sewing of edges of side panels with zipper, and sewing of inside lining to side panels to create the side pockets, in China, constitutes the most important assembly process. Accordingly, the country of origin is China.

In the case of the smaller travel bag, the sewing of the logo, front flap pocket and polypropylene handles on to the front panel and the sewing of the zipper on to the main panel, in China, constitutes the most important assembly process. Accordingly, the country of origin is China.

HOLDING:

The country of origin of the subject expandable school bag, referenced style number AM93-3010, backpack, referenced style number AM93-6020, carry-all lunch bag, referenced style number AM94-1020, large travel bag, referenced style number AM94-9222, and smaller travel bag, referenced style number AM95-9420, is China.

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