CLA-2 RR:TC:TE 960794 jb

Rose Ferreira
Q-Straint
16-100 Sheldon Drive
Cambridge, Ontario
Canada N1R 7S7

RE: Reconsideration of NY 811447; country of origin determination for restraint systems; 19 CFR 102.21(c)(2); tariff shift

Dear Ms. Ferreira:

This is in reply to your letter dated February 28, 1996, requesting reconsideration of New York Ruling Letter (NY) 811447, dated July 11, 1995, regarding the country of origin determination for wheelchair restraint systems. Samples were submitted to this office for examination.

FACTS:

The subject merchandise consists of the "Q"Straint Restraint System. The parts which comprise the various models of this wheelchair safety seat belt system include hook and loop type fasteners, aluminum belt holder, polypropylene hinge, screws, nylon spacer, belt cutter, channels, wall rack, riser bolt, rubber insert, adhesives, rear belts, front belts, lap belt, nut, shoulder belt, floor pocket, washers and S/belt bracket. In New York Ruling Letter (NY) 811447, dated July 11, 1995, the classification of this merchandise in subheading 8708.21.0000, HTSUSA, was discussed. Accordingly, this letter will only address the appropriate country of origin of the subject merchandise.

In your letter you indicate that "as of November 1995" all belts will be made in Canada. Additionally, in a telephone conversation with a member of my staff you noted that in December of 1997 all operations will be moved to Canada. As the facts of this case have changed since the issuance of NY 811447, we do not feel it would be appropriate to reconsider that ruling. Accordingly, this letter will serve as a new ruling based on the present facts.

The manufacturing operations are as follows:

NON-NAFTA COUNTRY some components are sourced, including: Rear belt- Left Hand protectors/flat hook; protectors/pin connectors; male pin connector assembly; rear flat hooks; overcenter buckle; "D" plastic D ring; electroplated "S" hooks-rear; Rear belt- Right Hand protectors/flat hook; protectors/pin connectors; male pin connector assembly; rear flat hooks; overcenter buckle; "D" plastic D ring; electroplated "S" hooks-rear; Front belt Left Hand Black 1" CAM BUCK front flat hooks zinc dich; electroplated "S" hook-front Front belt Right Hand Black 1" CAM BUCK front flat hooks zinc dich; Blue Lap Belt protectors/pin connectors; male pin connector assembly; female pin connector assembly Blue Shoulder Belt female pin connector; wall anchor plate on S/Belt; black webbing clip; shoulder belt adjuster Empty Bag for Instruct MTR FO new shoulder belt bracket-PAI

CANADA or UNITED STATES all remaining components are sourced complete assembly

ISSUE:

1. What is the country of origin of the subject merchandise?

2. What is the proper marking 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 (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 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":

8708.21 For seat belts combined with nontextile components, a change to an assembled good of subheading 8708.21 from unassembled components, 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 classifiable in subheading 8708.21, Harmonized Tariff Schedule of the United States (HTSUS). As the subject merchandise undergoes assembly operations in a single country, that is, the United States or Canada, the terms of the tariff shift are met. Accordingly, the country of origin of the subject merchandise is the United States or Canada.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. Part 134 of the Customs Regulations implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. 1304. Whether an article may be marked as "Made in the USA" is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the U.S. However, if the good is determined to be an article of Canada, the term "Made in Canada" is an appropriate marking for the article.

HOLDING:

The country of origin of the subject restraint system is the United States or Canada.

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 sections 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
Commercial Rulings Division