CLA-2-42:OT:RR:NC:N4:441
Mr. Daniel Meylor
Carmichael International Service
1200 Corporate Center Drive, #200
Monterey Park, CA 91754
RE: The tariff classification and country of origin of an insulated cooler bag from Cambodia; 19 CFR 102.21 (c)(2); tariff shift
Dear Mr. Meylor:
In your letter dated September 12, 2022, you requested a tariff classification and country of origin ruling on behalf of your client, California Innovations. Photographs and product descriptions were submitted for our review.
The subject article, which you referred to as the “18 Can Backpack Cooler, Style 56183,” is an insulated cooler bag.
In your request, you stated that the cooler bag is constructed with 100% polyester textile material which is uncoated on the outer surface of the finished article. The outer surface constituent material is man-made textile. The bag contains an insulated interior compartment that is designed to maintain the temperature of food or beverages. The article provides storage, protection, organization and portability to food or beverages during travel. The article features two back straps and a zipper closure.
You have indicated that the locations of the manufacturing operations for the cooler bag are as follows:
China
The polyester fabric and all materials are produced.
Cambodia
Per your submission, all cutting, sewing, and assembly are performed.
CLASSIFICATION
The applicable subheading for the insulated cooler bag will be 4202.92.0807, Harmonized Tariff Schedule of the United States (HTSUS), which provides for insulated food or beverage bags with an outer surface of man-made fibers. The general rate of duty will be 7 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
COUNTRY OF ORIGIN Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states, “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.” Since 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, “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 materials 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) in pertinent part states:
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:
HTSUS Tariff shift and/or other requirements
4202.92.04-4202.92.08 A change to subheadings 4202.92.04 through 4202.92.08 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 term “wholly assembled” is defined in paragraph (b)(6) of Section 102.21 as:
… 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.
The cooler bag is assembled in Cambodia from at least two components. As such, it meets the terms of the respective tariff shift requirement in Section 102.21(c)(2).
Accordingly, the country of origin of the insulated cooler bag is Cambodia.
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 or complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Vikki Lazaro at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division