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HQ 957343





January 25, 1995

CLA-2 CO:R:C:T 957343 ch

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.92.2000

Dan Allen
Miami Valley Worldwide
P.O. Box 2408
Dayton, Ohio 45401

RE: Classification and country of origin of travel bags; diaper and bottle bags; 19 CFR 12.130.

Dear Mr. Allen:

This is in response to your letters of September 22, 1994, and September 30, 1994, requesting a classification and country of origin ruling for certain bags used to transport and store infant supplies.

FACTS:

The submitted samples are described as totes for carrying infant supplies such as diapers, bottles, clothing and food. The completed articles are identified as styles 1263 (Pooh Denim), 1261 (Friends Forever), 1277 (Oh Bother), 1260 (Friends Forever) and 1276 (Oh Bother). The goods possess an exterior surface of both plastic sheeting and textile materials (predominantly ramie by weight, not of pile or tufted construction), with textile materials occupying the greatest portion of the surface area visible when they are carried.

The bags are fabricated from materials manufactured in Taiwan and include textile fabric, PVC sheeting, foam, labels, zippers, webbing, hangtags, thread, hook and loop material and cardboard. The materials are die-cut to specific size in Taiwan and are assembled by sewing operations in China. The costs for materials and labor in Taiwan comprise between 80 and 85 percent of the total cost of manufacturing the bags.

ISSUES:

What is the tariff classification for the bags?

What is the country of origin for the bags?

LAW AND ANALYSIS:

Classification

Heading 4202, HTSUS, encompasses various containers, including travel, sports and similar bags designed for carrying clothing and other personal effects during travel. See Chapter 42, Additional U.S. Note 1. The submitted samples meet this description, as they function principally as carrying bags for infant supplies. Hence, they are classifiable as travel bags of subheading 4202.92, HTSUS.

At the eight-digit subheading level, articles of heading 4202 are classified with reference to their exterior surface. The instant totes possess exterior surfaces of both plastic sheeting and textile materials. Pursuant to General Rules of Interpretation 3(a) and 3(b), and in conjunction with General Rule of Interpretation 6, the material imparting the essential character to the outer surface shall be employed for classification purposes. In this instance, the textile materials occupy the greatest portion of the surface area visible when the bags are in use. In our judgment, the textile materials impart the most striking visual and tactile qualities to the exterior surface. Consequently, we conclude that the totes possess outer surfaces of textile materials for classification purposes. Travel bags with exterior surfaces predominantly of ramie by weight, not of pile or tufted construction, are classifiable in subheading 4202.92.2000, HTSUS.

Country of Origin

Country of origin determinations for textile products are subject to Section 12.130 of the Customs Regulations (19 CFR 12.130). Section 12.130(b) provides that a textile product that is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.

Section 12.130(d) of the Customs Regulations sets forth criteria in determining whether a substantial transformation of a textile product has taken place. This regulation states that these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered.

Section 12.130(d)(1) states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:

(i) Commercial designation or identity,
(ii) Fundamental character or
(iii) Commercial use.

Section 12.130(d)(2) of the Customs Regulations states that in determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered:

(i) The physical change in the material or article as a result of the manufacturing or processing operations in each foreign territory or country, or insular possession of the United States.

(ii) The time involved in the manufacturing or processing operations in each foreign territory or country, or insular possession of the United States.

(iii) The complexity of the manufacturing or processing operations in each foreign territory or country, or insular possession of the United States.

(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations in each foreign territory or country, or insular possession of the United States.

(v) The value added to the article or material in each foreign territory or country, or insular possession of the United States, compared to its value when imported into the United States.

Section 12.130(e)(1) sets forth manufacturing or processing operations which will usually constitute a substantial transformation. Section 12.130(e)(2) enumerates instances which will usually not constitute a substantial manufacturing or processing operation. In Treasury Decision (T.D.) 85-38, published in the Federal Register on March 5, 1985, (50 FR 8714), the final rule document which established 19 CFR 12.130, there is a discussion of how the examples and factors enumerated in the regulation are intended to operate:

Examples set forth in 19 CFR 12.130(e) are intended to give guidance to Customs officers and other interested parties. Obviously, the examples represent clear factual situations where the country of origin of the imported merchandise is easily ascertainable. The examples are illustrative of how Customs, given factual situations which fall within those examples, would rule after applying the criteria listed in 12.130(d). Any factual situation not squarely within those examples will be decided by Customs in accordance with the provisions of 12.130(b) and (d).

Section 12.130(e) reads as follows:

Manufacturing or processing operations. (1) An article or material usually will be a product of a particular foreign territory or country, or insular possession of the U.S., when it has undergone prior to importation into the U.S. in that foreign territory or country, or insular possession any of the following:

(i) Dyeing of fabric and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing;

(ii) Spinning fibers into yarn;

(iii) Weaving, knitting or otherwise forming fabric;

(iv) Cutting of fabric into parts and the assembly of those parts into the completed article; or

(v) Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles which have been cut from fabric in another foreign territory or country, or insular possession, into a completed garment (e.g. the complete assembly and tailoring of all cut pieces of suit-type jackets, suits and shirts).

(2) An article or material usually will not be considered to be a product of a particular foreign territory or country, or insular possession of the U.S. by virtue of merely having undergone any of the following:

(i) Simple combining operations, labeling, pressing, cleaning or dry cleaning, or packaging operations, or any combination thereof;

(ii) Cutting to length or width and hemming or overlocking fabrics which are readily identifiable as being intended for a particular commercial use;

(iii) Trimming and/or joining together by sewing, looping, linking, or other means of attaching otherwise completed knit-to-shape component parts produced in a single country, even when accompanied by other processes (e.g. washing, drying, mending, etc.) normally incident to the assembly process;

(iv) One or more finishing operations on yarns, fabrics, or other textile articles, such as showerproofing, superwashing, bleaching, decating, fulling, shrinking, mercerizing, or similar operations; or

(v) Dyeing and/or printing of fabrics or yarns.

(Emphasis added).

In this instance, the materials comprising the finished articles have been manufactured and cut to specific size in Taiwan. The issue presented is whether the assembly of these cut components by means of sewing operations in China constitute a substantial transformation. In prior ruling letters in this area, we have determined that such processing does not constitute a substantial transformation. See Headquarters Ruling Letter (HRL) 956377, dated August 9, 1994 (Suitcases comprised of components manufactured, cut and partially assembled in Taiwan, assembled by gluing, sewing, riveting and other simple assembly processes in China, are goods originating in Taiwan); HRL 956428, dated May 26, 1994 (Textile pouches manufactured from fabric and components produced and die cut in Taiwan, assembled in China by sewing, are products of Taiwan); HRL 955799, dated April 28, 1994 (Knapsacks, pouches and carry-alls manufactured and cut in Taiwan, assembled by sewing in China, are products of Taiwan); HRL 955666, dated April 19, 1994 (Golf bags, photo/video bags, computer bags, compact disc cases, backpacks composed of fabrics and components produced and cut in Korea and the United States, assembled by means of sewing operations in China, are products of Korea); HRL 954225, dated August 30, 1993 (Textile tote bags and luggage manufactured and cut into panels in Taiwan which are assembled in China are goods originating in Taiwan); HRL 952642, dated May 10, 1993, (Sports bags, knapsacks, insulated lunch bags manufactured and cut to size in Taiwan and assembled/packed in China are goods originating in Taiwan); HRL 953065, dated April 9, 1993 (Bicycle bags consisting of components originating and cut to shape in Taiwan, assembled by simple sewing operations in China, are goods originating in Taiwan); HRL 951899, dated October 31, 1992 (Tote bags and luggage with components fabricated and cut to shape in Taiwan, stitched and assembled in China, originate in Taiwan); HRL 088455, dated March 8, 1991 (Nylon backpack comprised of components originating and cut to shape in Taiwan, assembled by simple sewing and packaging operations in Indonesia, are products of Taiwan). Based upon ample precedent, we conclude that the assembly of the instant travel bags in China does not constitute a substantial transformation. Accordingly, the bags are products of Taiwan.

HOLDING:

The subject merchandise is classifiable under subheading 4202.92.2000, HTSUS, which provides for travel, sports and similar bags: with outer surface of textile materials: of vegetable fibers and not of pile or tufted construction: other. The applicable rate of duty is 6.4 percent ad valorem. The textile category is 870.

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

The country of origin of the subject merchandise is Taiwan. This holding applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)), which states that a ruling letter is issued on the assumption that all the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. Should it subsequently be 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, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2).

Sincerely,

John Durant, Director
Commercial Rulings Division

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