CLA-2; CO:R:C:T 953065 ch
Ming Tac International Corp.
6F-1, No. 157, Chang Sha Street
Sec. 2
Taipei, Taiwan, R.O.C.
RE: Classification and country of origin of textile bicycle
bags.
Dear Sir/Madam:
This is in response to your letter of November 26, 1992,
concerning the country of origin and textile restraint category
for two bicycle bags.
FACTS:
The two samples, described as article 80-91-56, bike seat
bag, and 80-91-52, bike tridentate bag, are bicycle bags designed
to be strapped to a bicycle and used to carry personal effects
and tool accessories when biking. These items are manufactured
of nylon textile materials.
In addition, you have provided us with a "Country of Origin
Work Sheet," which itemizes the costs associated with the
manufacture of the bicycle bags as follows:
80-91-56 Cost (Bike Seat Bag)
Black Nylon Fabric NT$ 5.775
Printed Nylon Fabric NT$ 4.675
Labor Cost (9 Piece/Unit) NT$ 2.70
Nylon Belt NT$ 2.00
Buckle NT$ 0.80
Velcro NT$ 1.30
PE Board NT$ 1.50
Long Nylon Zip NT$ 8.00
Short Nylon Zip NT$ 6.00
Total Taiwan Cost NT$ 32.75 (U.S. $1.31)
Freight (Taiwan to China) NT$ 0.50
China Cost NT$ 3.00 (U.S. $0.12)
(Sewing Cost, 4 Units/Per Hour)
Product Total Cost NT$ 36.25
80-91-52 Cost (Bike Tridentate Bag)
Black Nylon Fabric NT$ 2.80
Black Tery Fabric NT$ 0.75
Printed Nylon Fabric NT$ 6.60
PU Form NT$ 1.40
Plastic Frame NT$ 3.60
Rivet (6 each) NT$ 0.50
Velcro NT$ 0.50
Buckle NT$ 0.80
Nylon Zipper NT$ 5.50
Labor Cost NT$ 2.40
Total Taiwan Cost NT$ 25.65 (U.S. $1.026)
Freight (Taiwan to China) NT$ 0.50
China Cost NT$ 3.00 (U.S. $0.12)
(Sewing Cost, 4 units/Per Hour)
Product Total Cost NT$ 29.15 (U.S. $1.17)
The "Work Sheet" states that only sewing work (i.e. assembly)
is performed in China. This fact suggests that the component
parts are products of Taiwan and that they are cut to size in
Taiwan. We are issuing this decision based on this understanding
of how the merchandise has been manufactured. However, if this
is not the case you must contact this office to obtain a new
ruling.
ISSUES:
What is the proper tariff classification for the subject
merchandise?
What is the country of origin for the subject merchandise?
LAW AND ANALYSIS:
Classification
The textile restraint category applicable to imported goods
is determined by the tariff classification of those goods.
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRI). GRI 1 provides that
classification is determined first in accordance with the terms
of the headings of the tariff and any relative section or chapter
notes. Where goods cannot be classified on the basis of GRI 1,
the remaining GRI will be applied in order.
Heading 4202, HTSUSA, provides for, inter alia, traveling
bags and sports bags.
Additional U.S. Note 1 to Chapter 42, HTSUSA, 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.
(Emphasis added).
The bicycle bags are designed to carry personal effects during
travel. Accordingly, they are classified as travel, sports and
similar bags under heading 4202. Specifically, they are
classified under subheading 4202.92.3030, which provides for
travel, sports and similar bags, with outer surface of textile
materials, of man-made fibers. Category 670 is applicable to
merchandise classifiable in that subheading.
Country of Origin
Country of origin determinations for textile products are
subject to Section 12.130 of the Customs Regulations (19 CFR
12.130). Section 12.130(b) provides that a textile product that
is processed in more than one country or territory shall be a
product of that country or territory where it last underwent
substantial transformation. A textile product will be considered
to have undergone a substantial transformation if it has been
transformed by means of substantial manufacturing or processing
operations into a new and different article of commerce.
Section 12.130(d) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place. This regulation states that
these criteria are not exhaustive; one or any combination of
criteria may be determinative, and additional factors may be
considered.
Section 12.130(d)(1) states that a new and different article
of commerce will usually result from a manufacturing or
processing operation if there is a change in:
(i) Commercial designation or identity,
(ii) Fundamental character or
(iii) Commercial use.
Section 12.130(d)(2) of the Customs Regulations states that
in determining whether merchandise has been subjected to
substantial manufacturing or processing operations, the following
will be considered:
(i) The physical change in the material or article as
a result of the manufacturing or processing operations
in each foreign territory or country, or insular
possession of the United States.
(ii) The time involved in the manufacturing or
processing operations in each foreign territory or
country, or insular possession of the United States.
(iii) The complexity of the manufacturing or
processing operations in each foreign territory or
country, or insular possession of the United States.
(iv) The level or degree of skill and/or technology
required in the manufacturing or processing operations
in each foreign territory or country, or insular
possession of the United States.
(v) The value added to the article or material in each
foreign territory or country, or insular possession of
the United States, compared to its value when imported
into the United States.
Section 12.130(e)(2)(iii) states that:
An article or material usually will not be considered
to be a product of a particular foreign territory or
country, or insular possession of the U.S. by virtue of
merely having undergone any of the following:
* * *
Trimming and/or joining together by sewing, looping,
linking, or other means of attaching otherwise
completed knit-to-shape component parts produced in a
single country, even when accompanied by other
processes (e.g. washing, drying, mending, etc.)
normally incident to the assembly process.
In HRL 951899, dated October 31, 1992, we issued a country
of origin determination for certain tote bags and luggage. In
that decision, luggage panels, zippers, grommets, piping,
webbing, labels and packing materials were shipped unassembled
from Taiwan to China. In China, these items were assembled into
the finished articles. We ruled that this assembly of goods did
not involve sufficient skill or complexity to constitute a
substantial transformation.
Similarly, in HRL 951481, dated July 31, 1992, we issued a
country of origin determination with respect to certain
knapsacks/backpacks. In that ruling, nylon fabric, thread,
binding, zippers, webbing, trim and hang tags were die-cut in
Taiwan to the proper shapes for stitching. These component
materials were shipped to China, where they were assembled. We
found that the manufacture of the raw materials, and the design
and cutting operations were the factors which contributed most to
the creation of the final product.
We are of the opinion that the manufacturing and assembly
operations involved in this instance are substantially similar to
the operations cited above. Moreover, the greatest costs in
producing the articles at issue are incurred in Taiwan.
Accordingly, the country of origin of these articles is Taiwan as
that is where the articles last underwent a substantial
transformation and the greatest value was added.
HOLDING:
The subject merchandise is classifiable under subheading
4202.92.3030, HTSUSA, which provides for, inter alia, travel,
sports and similar bags, with outer surface of textile materials,
of man-made fibers. The applicable rate of duty is 20 percent ad
valorem. The bags are products of Taiwan and the applicable
textile quota category is 670.
The designated category may be subdivided into parts. If
so, visa and quota requirements applicable to the subject
merchandise may be affected. Since part categories are the
result of international bilateral agreements which are the
subject of frequent negotiations and changes, to obtain the most
current information available, we suggest that you check, close
to the time of shipment, the Status Report on Current Import
Quotas (Restraint Levels), an issuance of the U.S. Customs
Service, which is updated weekly and is available at the 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 the local
Customs office prior to importing the merchandise to determine
the current status of any import restraints or requirements.
The country of origin of the subject merchandise is Taiwan.
This country of origin determination applies only to the
specific factual situation and merchandise identified in the
ruling request. This position is clearly set forth in section
177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)). This
section states that a ruling letter is issued on the assumption
that all the information furnished in connection with the ruling
request and incorporated in the ruling letter, either directly,
by reference, or by implication, is accurate and complete in
every material respect. Should it subsequently be 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, it is recommended that a new
ruling request be submitted in accordance with section 177.2,
Customs Regulations (19 CFR 177.2).
Sincerely,
John Durant, Director