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HQ 088449


May 10, 1991

CLA-2 CO:R:C:T 088449 CMR

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.92.3030, 9802.00.80

Mr. Steven L. Markowitz
Max Kahn Curtain Corporation
261 Fifth Avenue
New York, New York 10016

RE: Classification, country of origin, 9802, HTSUSA, assembly abroad eligibility, and visa category of knitted mesh sack, mesh bag, "French Shopper"

Dear Mr. Markowitz:

This ruling is in response to your inquiry of September 26, 1991, requesting information on various issues regarding the importation of certain knitted mesh sacks from Haiti. A sample mesh sack was received with your inquiry.

FACTS:

The knitted mesh sack at issue is constructed of a knit mesh and binding of 50 percent cotton/50 percent polyester. The Customs National Import Specialist who specializes in this type of merchandise has informed us this article is of the type known as a "French Shopper".

The mesh fabric and binding fabric are of United States origin and are cut to length in the United States and shipped to Haiti for assembly. In Haiti, the sack body is formed by hand- stitching around the sack body and drawing the ends together with the thread and attaching the binding around the sack edges. Two hand loops are formed on the end with the binding. The finished sacks are packed 100 per carton and reshipped to the United States.

ISSUE:

What is the correct classification of the mesh sack under the HTSUSA?

What is the country of origin of the mesh sack?

Do the assembly operations occurring in Haiti qualify the mesh sack for a partial duty exemption under subheading 9802.00.80, HTSUSA?

LAW AND ANALYSIS:

Classification

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes, provided such headings or notes do not otherwise require, according to [the remaining GRIs taken in order]."

Heading 4202, HTSUSA, provides for, among other things, travel, sports and similar bags. Additional U.S. Note 1, Chapter 42, states:

For the purposes of heading 4202, the expression "travel, sports and similar bags" means goods, other than those falling in subheadings 4202.11 through 4202.39, of a kind designed for carrying clothing and other personal effects during travel, including backpacks and shopping bags of this heading, but does not include binocular cases, camera cases, musical instrument cases, bottle cases and similar containers.

Based on the identification of this article as a mesh shopping bag, of the class or kind of articles used to carry personal effects much like backpacks or shopping bags, and the scope of the expression "travel, sports and similar bags" as set forth in U.S. Note 1 of Chapter 42, the mesh sack at issue is classifiable in subheading 4202.92.3030, HTSUSA, which provides for travel, sports and similar bags, with outer surface of textile materials, of man-made fibers. The article falls within textile category 670 and is dutiable at 20 percent ad valorem.

Country of origin

Country of origin determinations for textile articles are governed by the criteria set forth in Volume 19 of the Code of Federal Regulations, Section 12.130. Generally, section 12.130 provides that the country of origin of a textile article is that foreign territory, country or insular possession where the article last undergoes a substantial transformation.

Section 12.130(c), however, specifically addresses the determination of country of origin for, among other things, U.S. articles sent abroad for assembly. Section 12.130(c) provides that merchandise which is assembled abroad within the purview of Chapter 98, Subchapter II, Note 2, HTSUSA, may not upon its return to the U.S., be considered a product of the U.S.. Note 2 provides, in pertinent part:

(a) Except as provided in paragraph (b) [which does not apply to textile articles or apparel articles], any product of the United States which is returned after having been advanced in value . . ., or any imported article which has been assembled abroad in whole or in part of products of the United States, shall be treated for purposes of this Act as a foreign article, . . . .

Section 10.16(a), Customs Regulations (19 CFR 10.16(a)), provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fasteners.

Since the U.S. components of the mesh sack are shipped to Haiti in condition ready for assembly by sewing [which is specified as an acceptable assembly operation in 19 CFR 10.16(a)], the country of origin of the mesh sack is Haiti.

In order to qualify for a partial duty exemption under subheading 9802.00.80, HTSUSA, an article must meet the criteria set out in the language of the subheading. Subheading 9802.00.80, HTSUSA, provides a partial duty exemption for:

[a]rticles assembled abroad in whole or in part of fabricated components, the product of the United States which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubrication, and painting.

As stated above, the U.S. components were exported in condition for assembly without further fabrication and are assembled in Haiti by sewing without further operations other than packing into cartons which is an incidental operation. Therefore, the mesh sack clearly meets criteria (a) and (c) of subheading 9802.00.80, HTSUSA. As to the third criteria, i.e., that the components have not lost their identity in the article by change in form, shape or otherwise, an examination of a
finished mesh sack reveals one can easily distinguish the knit mesh and the binding fabric. Therefore, in this instance, all criteria of subheading 9802.00.80, HTSUSA, are met.

Section 10.22, Customs Regulations (19 CFR 10.22), states that assembled articles entitled to the partial duty exemption under subheading 9802.00.80, HTSUSA, are considered products of the country of assembly for the purposes of country of origin marking. If an imported assembled article is made entirely of American-made materials, the United States origin of the material may be disclosed by using a legend such as "Assembled in ____ from material of U.S. origin," or a similar phrase. Pursuant to 19 CFR 10.22, the mesh sack may be marked with the legend "Assembled in Haiti from material of U.S. origin" or a similar phrase.

HOLDING:

The mesh sack at issue is classifiable in subheading 4202.92.3030, HTSUSA, which provides for travel, sports and similar bags, with outer surface of textile materials, of man- made fibers. The article falls within textile category 670 and is dutiable at 20 percent ad valorem.

The mesh sack is considered a product of Haiti and therefore the country of origin is Haiti.

The assembly operations occurring in Haiti meet the criteria for the mesh sack to be accorded a partial duty exemption under subheading 9802.00.80, HTSUSA, and the mesh sack may therefore be entered under that subheading.

As to your question regarding how much of category 670 was allocated for 1990, there was no restraint level for category 670 in 1990 for Haiti and therefore, there was no need for an allocation. However, a restraint level may be set at any time that the Committee for the Implementation of Textile Agreements (CITA) determines that market disruption is occurring. Any further questions you may have regarding this issue should be directed to:

U.S. Commerce Department
Office of Textiles and Apparel
14th & Constitution Avenue, N.W.
Washington, D.C. 20230

The designated textile and apparel category may be subdivided into parts. If so, the visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we suggest you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service which is updated weekly and is available for inspection at your local Customs office.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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