Ms. Alice Wu
Printx GP (Cambodia) Factory Co., Ltd
National Road # 51, Trapeang Phlong Village,
Damnak Reang Commune, Oudong District,
Kampong Speu Province, Cambodia 50143
RE: The tariff classification and country of origin for a tool bag and backpack from Cambodia; 19 CFR 102.21 (c)(2); tariff shift
Dear Ms. Wu:
In your letter dated June 22, 2022, you requested a tariff classification and country of origin ruling on behalf of your client, Lowe's Companies, Inc. You have submitted photographs in lieu of samples.
The subject article, which you referred to as the "Kobalt 16" Cargo bonus pack-ins, item 5064409," contains a tool bag, drawstring backpack, and a hat. The hat will be addressed in ruling N326985.
In your request, you stated that the tool 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 tool bag is suitable for repetitive reuse and designed to provide protection, portability, organization, and storage to various hand tools and related accessories. The article features a zippered closure, multiple pockets on the front and back of the bag, and a handle. It also has one adjustable shoulder strap.
The second item at issue which you referred to as the "Kobalt drawstring backpack" is a backpack. You stated that the backpack is constructed with 100% polyester textile material which is uncoated on the outer surface of the finished article. The drawstring backpack is suitable for repetitive reuse and designed to provide storage, protection, organization, and portability for accessories and personal effects during travel. The article has an opening at the top that secures when the drawstring is pulled tight. Two drawstring cords are permanently attached to the rear exterior of the article which enable the user to wear the backpack over the shoulders and on the back.
You have indicated that the locations of the manufacturing operations for both the tool bag and the backpack are as follows:
The polyester fabric and all materials are produced.
All cutting, sewing, and assembly are performed.
The applicable subheading for the tool 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 textile materials, other, other, with outer surface of textile materials, of man-made fibers. The general rate of duty will be 17.6 percent ad valorem.
The applicable subheading for the drawstring backpack will be 4202.92.3120, HTSUS, which provides for travel, sports, and similar bags, with outer surface of textile materials, of man-made fibers, backpacks. 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:
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
4202.92.60-4202.92.90 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.
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 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.
Both the tool bag and the backpack are assembled in Cambodia from at least two components. As such, each meets the terms of the respective tariff shift requirement in Section 102.21(c)(2).
Accordingly, the country of origin of the toolbag and the backpack is Cambodia.
Please note that on July 1, 2016, the HTSUS was revised. Subheading 4202.92.90 became 4202.92.91. Subheading 4202.92.30 became 4202.92.31. Thus, for the purpose of these requirements 4202.92.91 and 4202.92.31 are the appropriate equivalent subheadings.
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 vikki.lazaro.cbp.dhs.gov.
Steven A. Mack
National Commodity Specialist Division