CLA-2 RR:TC:TE 959542 jb
Vince L. Bautista
Basis Point, Inc.
828 W. Cienega Ave., Suite 2
San Dimas, CA 91773
RE: Country of origin determination for computer carrying case
and accessory pouch; 19 CFR 102.21(c)(2); tariff shift; 19 CFR
102.21(c)(4); most important manufacturing process
Dear Mr. Bautista:
This is in reply to your letter dated July 29, 1996,
requesting a country of origin determination for certain computer
carrying cases which will be imported into the United States.
FACTS:
The subject merchandise, referenced model number M70-1000,
consists of a computer carrying case made out of polyester fabric
and measuring 16-1/4 inches by 12 inches by 5 inches. The
carrying case features a wide front zippered compartment, an
exterior side pocket (for cellular phone), a back pocket, an
accessory pouch (also made out of polyester fabric) and a
carrying strap. The manufacturing operations are as follows:
KOREA
1. Main front side with pocket
- Cutting of inside and outside pattern, foam for
padding, leather for logo, interior mesh pocket/flap,
PVC accents, organizer wall for file pocket;
- Sewing of inside and outside patterns and
inserting of foam, zipper in front pocket, mesh
pocket/flap in front of organizer wall, logo, PVC accents.
2. Gussette (Top and side walls)
- Cutting of inside and outside pattern, handle, PVC for
handle reinforcements, loop type fastener fabric,
webbing;
- Sewing of inside and outside pattern and inserting of
foam, loop type fastener fabric all around the inside,
wrap handle with PVC, PVC handle reinforcements with rivets, webbing on sides for reinforcement and strap
attachment.
3. Back side
- Cutting of inside and outside pattern, back pocket
wall, hook and loop type fastener (back pocket to exterior
back side);
- Sewing of inside and outside pattern and inserting of
foam, hook and loop type fastener on exterior back
side.
4. Bottom side
- Cutting of inside and outside pattern and foam;
- Sewing of inside and outside pattern, inserting
of foam, rubber feet.
5. Phone pocket
- Cutting of inside and outside pattern for flap, front
and gussette.
6. Accessory Pouch
- Cutting of inside and outside pattern, leather for
tabs and zipper puller;
- Sewing of completed accessory pouch.
* You state in your letter that in addition to the polyester
accessory pouch that comes with the subject computer carrying
case, the accessory pouch is also available in polyurethane and
sold separately (Model AC70-0880). In the case where the
accessory pouch is made out of polyurethane, Model AC70-0880, the
sewing of the completed pouch will be done in China and not in
Korea.
7. Interior Divider
- Cutting of loop type fastener fabric and foam.
8. Shoulder strap
- Cutting of webbing;
- Sewing of completed strap and dog leash hardware to
strap.
CHINA
- sewing of main front side, gussette, back side;
- sewing of phone pocket to gussette;
- wrap interior divider foam with loop type fastener fabric
and attach hook and loop type fastener;
- attach shoulder strap.
ISSUE:
What is the country of origin of 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":
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 consists of a computer carrying case
and an accessory pouch. General Rule of Interpretation (GRI)
3(b) states that:
Mixtures, composite goods consisting of different materials
or made up of different components, and goods put up in sets for
retail sale, which cannot be classified
by reference to 3(a), shall be
classified as if they consisted of the
material or component which gives them
their essential character, insofar as
this criterion is applicable.
As the essential character of the subject merchandise is imparted
by the computer carrying case, the proper classification for the
submitted merchandise is in subheading 4202.92.90, HTSUSA, which
provides for in general, carrying cases.
Section 102.21(d) addresses the treatment of sets for
country of origin purposes. Section 102.21(d) provides the
following:
Where a good classifiable in the HTSUS as a set includes one
or more components that are textile or apparel products and
a single country of origin for all of the components of the
set cannot be determined under paragraph (c) this section,
the country of origin of each component of the set that is a
textile or apparel product shall be determined separately
under paragraph (c) this section.
Section 102.21(b)(6) defines wholly assembled as :
The term "wholly assembled" when used with reference to a
good means that all components, of which there must be at
least two, preexisted in essentially the same condition as
found in the finished good and were combined to form the
finished good in a single country, territory, or insular
possession. Minor attachments and minor embellishments (for
example, appliques, beads, spangles, embroidery, buttons)
not appreciably affecting the identity of the good, and
minor subassemblies (for example, collars, cuffs, plackets,
pockets), will not affect the status of a good as "wholly
assembled" in a single country, territory, or insular
possession.
Although the classification of the subject merchandise, as per an
essential character determination, is based on the computer
carrying case, as per the terms of Section 102.21(d), the country
of origin of the computer carrying case and accessory pouch must
be determined separately. As the subject carrying case is
assembled in both Korea and China, the good is not wholly
assembled in a single country. Accordingly, Section 102.21(c)(2)
is inapplicable to the computer carrying case. The polyester
accessory pouch on the other hand, does undergo the requisite
tariff shift because it is wholly assembled in a single country,
that is, Korea. As such, the country of origin of the polyester
accessory pouch is Korea. In the case where the accessory pouch
is made of polyurethane and sold separately, the pouch is
classifiable in subheading 4202.92.9040, HTSUSA. As this is a
non-textile item it is not subject to quota/visa. Based on the
facts presented, we believe the country of origin of the
polyurethane pouch is the country of assembly, that is, China.
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, nor wholly
assembled in a single country, Section 102.21 (c)(3) is
inapplicable.
Section 102.21 (c)(4) states, "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 computer carrying case,
important manufacturing operations occur in both Korea and China.
It is the opinion of this office that the manufacturing
operations in Korea, where the main front side with pocket,
gussette, back side, bottom side and shoulder strap are
assembled to form these individual component pieces, constitute
the most important manufacturing operations.
HOLDING:
The country of origin of the subject computer carrying case
and polyester accessory pouch, referenced style number M70-1000,
is Korea and requires a visa from Korea.
The country of origin of the poyurethane pouch, referenced
style number AC70-0880, is China and it is not subject to
quota/visa.
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