Liefeng Outdoors (Cambodia) Co., Ltd
National Road No.3, Pichchorngva Village, Beong
Trangkangchoeurng Commune, Samroung District
Takeo Province, 310203
RE: The tariff classification and country of origin for tool bags; 19 CFR 102.21 (c)(2); tariff shift
Dear Mr. Tsang:
In your letter dated September 1, 2020, you requested a tariff classification and country of origin ruling on behalf of your client, Lowe’s Companies, Inc. You have submitted a sample, which will be returned to you under separate cover.
The submitted sample, KOBALT 3-BAG COMBO-item number 2626723, consists of three tool bags. Each bag is constructed with an outer surface of 100 percent polyester, which is a man-made textile material. You indicated the outer surface is not coated. Each article is designed to provide protection, portability, organization, and storage to various hand tools and related accessories. The rolling bag features a permanently attached telescoping handle, two wheels, and three front exterior open pockets. The duffel-style bag features two handles, one shoulder strap, a zippered closure, and one side open pocket. The generic tool bag features two handles and a zippered compartment.
The locations of the manufacturing operations for the subject article are as follows: ChinaThe polyester fabric and all materials (plastic piping, zipper, zipper pull, cotton cord, PP webbing, metal frame, PE board, hook-and-look fastener strip, MDF board, metal washer, telescoping handle, wheel system, PP board, bamboo strip, embroidery thread white, metal rivet, metal screw, elastic strap, 0.15 MM Q grain PVC, metal sheet, plastic feet, nylon sewing thread blue and black, diamond mesh, neoprene fabric, metal D-ring, metal clip, metal adjustable ring, clear PVC, and inside label) are produced.
CambodiaAll cutting, sewing, and assembly are performed.
CLASSIFICATIONThe applicable subheading for the bag will be 4202.92.9100, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other containers and cases, with outer surface of sheeting of plastics or of textile materials, other, other, with outer surface of textile materials, of man-made fibers (except for jewelry boxes of a kind normally sold at retail with their contents). The general rate of duty will be 17.6 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: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 requirements4202.92.60-4202.92.90 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.
As the tool bags are wholly assembled in Cambodia, per the terms of the tariff shift requirement, the country of origin is Cambodia.
Please note that on July 1, 2016, the Harmonized Tariff Schedule of the United States (HTSUS) was revised. Subheading 4202.92.90 became 4202.92.91. Thus, for the purpose of this requirement 4202.92.91 is the appropriate equivalent subheading.The country of origin of the tool bags, KOBALT 3-BAG COMBO-item number 2626723, is Cambodia.
Articles classifiable under subheading 4202.92.91, HTSUS, which are products of Cambodia are currently entitled to duty-free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP, however, is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Website at www.cbp.gov and search for the term “GSP.”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). 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 CBP, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.
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].
Steven A. Mack
National Commodity Specialist Division