CLA-2 RR:CR:TE 962288 jb

Barbara Y. Wierbicki, Esq.
Serko & Simon LLP
One World Trade Center, Suite 3371
New York, NY 10048

RE: Revocation of NY D81322; country of origin of backpacks

Dear Ms. Wierbicki:

On September 16, 1998, our New York office issued to you New York Ruling Letter (NY) D81322, on behalf of your client, Accessory Network Group, regarding the country of origin of certain backpacks. A review of the facts in NY D81322 has revealed that although part of the analysis set forth in that ruling is correct, the origin determination is in error. Additionally, because of an apparent misunderstanding regarding the facts based upon your August 7, 1998, letter, although NY D81322 indicates that some of the manufacturing operations occur in Taiwan, you indicate that none of the operations occur in Taiwan, but instead in Indonesia. Accordingly, this letter will set out the proper country of origin determination for the subject merchandise.

FACTS:

The merchandise, for which formerly no style number was given, but which you now indicate to be #T006090, is described as being unlined, and of rectangular shape, measuring approximately 15 inches in height by 11-3/4 inches in width and 5-1/2 inches in depth. The backpack is composed of an exterior surface which is mainly of man-made polyester woven fabric, except for the suede leather bottom panel. The backpack features a drawstring closure and a flap with a zippered compartment which covers the bag’s opening.

The front panel of the backpack has a stitched zippered pocket measuring approximately 7-3/4 inches in height by 9-1/2 inches in width by 1-1/2 inches in depth. The pocket’s front panel has a smaller zippered pocket, the top section of which is suede. The back panel features two adjustable webbing straps, as well as a hand strap, both made of nylon. All the inseams of the subject merchandise are hemmed with PVC sheeting tapes.

The manufacturing operations are stated as follows:

China cut and notch materials for assembly sew front pocket together and attach to front panel sew lining to flap, creating zippered pocket attach closure mechanism, hand strap and upper section of back straps to flap of bag sew together two sections of bottom panel (creating bottom panel) sew lining to bottom panel fold over and stitch closed approximately three inches wide nylon section, after inserting cord with hardware, creating drawstring closure section

Indonesia sew back panel to bottom panel sew front panel to bottom panel sew side panels to bottom panel sew all sides together, creating body cavity of the backpack sew drawstring closure section to tops of all four sides of backpack sew flap and back strap attachments to back panel of backpack

ISSUE:

What is the proper country of origin for the subject merchandise?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. 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, 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 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 4202.90.30 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.

As the subject merchandise is not wholly assembled in a single country, the terms of the tariff shift are not met.

Paragraph (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; or

(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 country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is neither knit to shape nor wholly assembled in a single country, paragraph (c)(3) is inapplicable.

Paragraph (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 manufacturing operations occur at the time in which all the individual panels are sewn together creating the identity of the backpack, in Indonesia. As such, the country of origin of the subject merchandise is Indonesia.

HOLDING:

Accordingly, NY D81322 is revoked to reflect Indonesia as the country of origin for the subject merchandise.

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 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
Commercial Rulings Division