CLA-2-42:OT:RR:NC:N4:441
Sze Wong Fung
Chit Shing P.V.C. Products Mfy., Ltd.
7/Floor, Wing Hin Factory Building, 31-33 Ng Fong Street San Po Kong
Hong Kong, 852
China
RE: The tariff classification and country of origin for a tote bag; 19 CFR 102.21(c)(2)
Dear Ms. Fung:
In your letter dated July 27, 2020, you requested a tariff classification and country of origin ruling on behalf of your client, Walgreens Boots Alliance. You have submitted photos in lieu of a sample.
The subject merchandise, which you referred to as the “Pink Ombre Tote Bag - WIC999883,” is a tote bag. You state that it is constructed with an outer surface of 100 percent polyester, which is a man-made textile material. The tote bag is designed to provide storage, protection, portability, and organization to personal effects during travel. The article features an open top and two handles.
The locations of the manufacturing operations for the subject article are as follows: China The fabric is produced.
The fabric is cut into the individual components of the bags, except for the handles. Cambodia The handle components are cut.
All sewing and assembly are performed. CLASSIFICATION The applicable subheading for the tote bag will be 4202.92.3131, Harmonized Tariff Schedule of the United States (HTSUS), which provides for travel, sports, and similar bags, with an outer surface of textile material, other, other, of man-made fibers. The general rate of duty is 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 4202.92.15-4202.92.30 A change to subheading 4202.92.15 through 420.92.30 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.
Please note that on July 1, 2016, the Harmonized Tariff Schedule of the United States (HTSUS) was revised. Subheading 4202.92.30 became 4202.92.31. Thus, for the purpose of this requirement 4202.92.31 is the appropriate equivalent subheading. Item WIC999883 was assembled in Cambodia with at least two components. As such, it meets the terms of the tariff shift requirement for subheading 4202.92.30 (4202.92.31) in Section 102.21(c)(2).
Accordingly, the country of origin of the subject item is Cambodia.
Articles classifiable under subheading 4202.92.31, 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].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division