CLA-2 CO:R:C:T 088449 CMR
Mr. Steven L. Markowitz
Max Kahn Curtain Corporation
261 Fifth Avenue
New York, New York 10016
RE: Classification, country of origin, 9802, HTSUSA, assembly
abroad eligibility, and visa category of knitted mesh
sack, mesh bag, "French Shopper"
Dear Mr. Markowitz:
This ruling is in response to your inquiry of September 26,
1991, requesting information on various issues regarding the
importation of certain knitted mesh sacks from Haiti. A sample
mesh sack was received with your inquiry.
FACTS:
The knitted mesh sack at issue is constructed of a knit
mesh and binding of 50 percent cotton/50 percent polyester. The
Customs National Import Specialist who specializes in this type
of merchandise has informed us this article is of the type known
as a "French Shopper".
The mesh fabric and binding fabric are of United States
origin and are cut to length in the United States and shipped to
Haiti for assembly. In Haiti, the sack body is formed by hand-
stitching around the sack body and drawing the ends together with
the thread and attaching the binding around the sack edges. Two
hand loops are formed on the end with the binding. The finished
sacks are packed 100 per carton and reshipped to the United
States.
ISSUE:
What is the correct classification of the mesh sack under
the HTSUSA?
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What is the country of origin of the mesh sack?
Do the assembly operations occurring in Haiti qualify the
mesh sack for a partial duty exemption under subheading
9802.00.80, HTSUSA?
LAW AND ANALYSIS:
Classification
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRIs). GRI 1 provides that
"classification shall be determined according to the terms of the
headings and any relative section or chapter notes, provided such
headings or notes do not otherwise require, according to [the
remaining GRIs taken in order]."
Heading 4202, HTSUSA, provides for, among other things,
travel, sports and similar bags. Additional U.S. Note 1, Chapter
42, states:
For the purposes of heading 4202, the expression "travel,
sports and similar bags" means goods, other than those
falling in subheadings 4202.11 through 4202.39, of a kind
designed for carrying clothing and other personal effects
during travel, including backpacks and shopping bags of this
heading, but does not include binocular cases, camera cases,
musical instrument cases, bottle cases and similar
containers.
Based on the identification of this article as a mesh
shopping bag, of the class or kind of articles used to carry
personal effects much like backpacks or shopping bags, and the
scope of the expression "travel, sports and similar bags" as set
forth in U.S. Note 1 of Chapter 42, the mesh sack at issue is
classifiable in subheading 4202.92.3030, HTSUSA, which provides
for travel, sports and similar bags, with outer surface of
textile materials, of man-made fibers. The article falls within
textile category 670 and is dutiable at 20 percent ad valorem.
Country of origin
Country of origin determinations for textile articles are
governed by the criteria set forth in Volume 19 of the Code of
Federal Regulations, Section 12.130. Generally, section 12.130
provides that the country of origin of a textile article is that
foreign territory, country or insular possession where the
article last undergoes a substantial transformation.
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Section 12.130(c), however, specifically addresses the
determination of country of origin for, among other things, U.S.
articles sent abroad for assembly. Section 12.130(c) provides
that merchandise which is assembled abroad within the purview of
Chapter 98, Subchapter II, Note 2, HTSUSA, may not upon its
return to the U.S., be considered a product of the U.S.. Note 2
provides, in pertinent part:
(a) Except as provided in paragraph (b) [which does not
apply to textile articles or apparel articles], any product
of the United States which is returned after having been
advanced in value . . ., or any imported article which has
been assembled abroad in whole or in part of products of the
United States, shall be treated for purposes of this Act as
a foreign article, . . . .
Section 10.16(a), Customs Regulations (19 CFR 10.16(a)),
provides that the assembly operation performed abroad may consist
of any method used to join or fit together solid components, such
as welding, soldering, riveting, force fitting, gluing,
laminating, sewing, or the use of fasteners.
Since the U.S. components of the mesh sack are shipped to
Haiti in condition ready for assembly by sewing [which is
specified as an acceptable assembly operation in 19 CFR
10.16(a)], the country of origin of the mesh sack is Haiti.
In order to qualify for a partial duty exemption under
subheading 9802.00.80, HTSUSA, an article must meet the criteria
set out in the language of the subheading. Subheading
9802.00.80, HTSUSA, provides a partial duty exemption for:
[a]rticles assembled abroad in whole or in part of
fabricated components, the product of the United States
which (a) were exported in condition ready for assembly
without further fabrication, (b) have not lost their
physical identity in such articles by change in form, shape
or otherwise, and (c) have not been advanced in value or
improved in condition abroad except by being assembled and
except by operations incidental to the assembly process such
as cleaning, lubrication, and painting.
As stated above, the U.S. components were exported in
condition for assembly without further fabrication and are
assembled in Haiti by sewing without further operations other
than packing into cartons which is an incidental operation.
Therefore, the mesh sack clearly meets criteria (a) and (c) of
subheading 9802.00.80, HTSUSA. As to the third criteria, i.e.,
that the components have not lost their identity in the article
by change in form, shape or otherwise, an examination of a
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finished mesh sack reveals one can easily distinguish the knit
mesh and the binding fabric. Therefore, in this instance, all
criteria of subheading 9802.00.80, HTSUSA, are met.
Section 10.22, Customs Regulations (19 CFR 10.22), states
that assembled articles entitled to the partial duty exemption
under subheading 9802.00.80, HTSUSA, are considered products of
the country of assembly for the purposes of country of origin
marking. If an imported assembled article is made entirely of
American-made materials, the United States origin of the material
may be disclosed by using a legend such as "Assembled in ____
from material of U.S. origin," or a similar phrase. Pursuant to
19 CFR 10.22, the mesh sack may be marked with the legend
"Assembled in Haiti from material of U.S. origin" or a similar
phrase.
HOLDING:
The mesh sack at issue is classifiable in subheading
4202.92.3030, HTSUSA, which provides for travel, sports and
similar bags, with outer surface of textile materials, of man-
made fibers. The article falls within textile category 670 and
is dutiable at 20 percent ad valorem.
The mesh sack is considered a product of Haiti and therefore
the country of origin is Haiti.
The assembly operations occurring in Haiti meet the criteria
for the mesh sack to be accorded a partial duty exemption under
subheading 9802.00.80, HTSUSA, and the mesh sack may therefore be
entered under that subheading.
As to your question regarding how much of category 670 was
allocated for 1990, there was no restraint level for category 670
in 1990 for Haiti and therefore, there was no need for an
allocation. However, a restraint level may be set at any time
that the Committee for the Implementation of Textile Agreements
(CITA) determines that market disruption is occurring. Any
further questions you may have regarding this issue should be
directed to:
U.S. Commerce Department
Office of Textiles and Apparel
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
The designated textile and apparel category may be
subdivided into parts. If so, the visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
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changes, to obtain the most current information available, we
suggest you check, close to the time of shipment, the Status
Report On Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service which is updated weekly and
is available for inspection at your local Customs office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to importation of this merchandise to
determine the current status of any import restraints or
requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division