CLA-2 RR:TC:TE 960840 jb
Mr. V. Gibson
Jno. G. McGiffin
1510 Talleyrand Avenue
Jacksonville, Fla. 32201
RE: Country of origin determination for backpacks; 19 CFR
102.21(c)(4); most important assembly or manufacturing
process
Dear Mr. Gibson:
This is in reply to your letter dated April 23, 1997, on
behalf of your client, Mercury Luggage Manufacturing Co.,
followed by a subsequent submission by your client of June 9,
1997, requesting a country of origin determination for certain
backpacks which will be imported into the United States. Samples
were submitted to this office for examination.
FACTS:
The merchandise at issue consists of two styles of
backpacks, referenced style numbers SH-0010 and DH-1021NL, made
of polyester fabric. The manufacturing process is as follows:
STYLE NUMBER SH-0010
TAIWAN
material is sourced
fabric is cut into component pieces
front panel, including pockets, embroidered "North Crest"
logo, zipper, mesh and buckle
are sewn together
back panel, including shoulder straps with webbing and
buckle, are sewn together
bottom panel with gussets and zipper, are sewn together
CHINA
front panel, back panel and bottom panel with gussets are
sewn together
loose threads are cut
packing in cartons
STYLE NUMBER DH-1021NL
TAIWAN
material is sourced
fabric is cut into component pieces;
body panel, including front panel with zipper, bottom panel,
and back panel with shoulder straps, webbing and buckle, are
sewn together
gussets with zipper are sewn together
CHINA
body of bag and gussets are sewn together
loose threads are cut
packing in polybags.
ISSUE:
What is the country of origin of the submitted 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apparel entered, or withdrawn from warehouse, for consumption, on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 of
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 4202.92.30 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.
The subject merchandise is classified in subheading
4202.92.3020, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). As the subject backpacks are not wholly
assembled in a single country, the terms of the tariff shift are
not met.
Section 102.21(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;
(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 single 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 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 style number SH-0010, the most
important assembly process occurs at the time in which the front
panel, including pockets, zipper, mesh and buckle are sewn
together; the back panel, including the shoulder straps with
webbing and buckle are sewn together; and the bottom panel with
gussets and zipper are sewn together, in Taiwan. In the case of
style number DH-1021NL, the most important assembly process
occurs at the time the body panel including the front panel,
bottom panel, and back panel are sewn together, and the gussets
with zipper are sewn together, in Taiwan.
HOLDING:
The country of origin of the subject merchandise, referenced
style numbers SH-0010 and DH-1021NL, is Taiwan.
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
Commercial Rulings Division