CLA-2-42:OT:RR:NC:N4:441
Daniel J. Meylor
Carmichael International Service
1200 Corporate Center Drive, Suite 200
Monterey Park, CA 91754
RE: The tariff classification and country of origin for three insulated cooler bags; 19 CFR 102.21 (c)(2); tariff shift
Dear Mr. Meylor:
In your letter dated August 31, 2021, you requested a tariff classification and country of origin ruling on behalf of your client, California Innovations. Inc. You have submitted photographs in lieu of samples.
The subject articles, which you referred to as the “9 Can Zipperless Hardbody Cooler, Style 543251,” the “12 Can Zipperless Hardbody Cooler, Style 557747,” and the “24 Can Zipperless Hardbody Cooler, Style 543258,” are insulated cooler bags.
In your request, you stated that the outer surface of each article is constructed with 90% polyester textile material and 10% polyvinyl butyral (PVB). The majority of the outer surface of each article is composed of the textile material. As such, the essential character of each bag is imparted by the textile, General Rule of Interpretation 3(b) of the Harmonized Tariff Schedule of the United States (HTSUS) noted.
The cooler bags provide storage, protection, portability, and organization to beverages during travel. They are also designed to maintain the temperature of the beverages. Based on the submitted photographs, they are identical except for the size. Each cooler bag features a top hook-and-loop closure, a layer of foam between the outer surface material and the lining, and one adjustable shoulder strap. Each front exterior features one zippered pocket.
The locations of the manufacturing operations for the subject article are as follows: China Per your submission, the polyester fabric, PVB, polyethylene vinyl acetate (PEVA) lining, and all raw materials [material for shoulder strap, binding material, hook-and loop, thermoplastic polyurethane (TPU) patch, zipper tape and teeth, pom slider and D-bridge, adjustment hardware and rectangular ring, back saver pads, back saver label, plastic lid, plastic tub and shelf, the Artic Zone (AZ) woven label, and hangtags] are produced.
Vietnam
Per your submission, all cutting, sewing, and assembly are performed.
CLASSIFICATION The applicable subheading for the three insulated cooler bags will be 4202.92.0807, HTSUS, which provides for insulated food and beverage bags, with outer surface of sheeting of plastic or of textile materials, with outer surface of textile materials, other, of man-made textiles. 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 subheading 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 three insulated cooler bags are assembled in Vietnam from at least two components. As such, they meet the terms of the tariff shift requirement for subheading 4202.92.08 in Section 102.21(c)(2).
Accordingly, the country of origin of the subject items is Vietnam.
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