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HQ 958626




May 2, 1996
CLA-2 RR:TC:TE 958626 jb

CATEGORY: CLASSIFICATION

Leonard L. Rosenberg, Esq.
Sandler Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, Florida 33126-2022

RE: Country of origin determination of tote bags and cosmetic bags; 19 C.F.R. 102.21; 102.21(c)(4), country of origin is the country in which the most important manufacturing process occurred; 102.21(c)(5), country of origin is the last country in which an important manufacturing process occurred

Dear Mr. Rosenberg:

This is in response to your letter, dated October 31, 1995, on behalf of your client, Jaclyn, Inc., in which you request a country of origin determination for five styles of bags. This office was provided with samples of the unfinished and finished articles, as well as detailed descriptions of the manufacturing processes which occur in "Country A" and "Country B". As per your request, the samples will be returned under separate cover.

FACTS:

The merchandise and production processes are described as follows:

STYLE NO. L-1570

Description:

A large oversized tote bag with a front logo (either textile label or embossed non- textile patch), a top opening secured by a zipper with a pull tab, handles and a gusseted bottom. The bag is approximately
23 inches across, 16-1/2 inches in length and 5-1/2 inches wide and features an outer surface and handles composed of a woven man-made fiber fabric.
The bag is lined and the gusset is covered with
PVC.

Processes:

Scenario 1:

Country A

1. Cut material into parts;
2. Emboss logo and sew to body panel;
3. Glue cardboard to top inside collar;
4. Sew zipper on inside collar;
5. Sew handles in rolls, cut handles to length and sew on to zipper panel.

Country B

1. Attach country of origin label to inside lining panel;
2. Sew inside lining panels and attach to top collar;
3. Sew the front and back panels to create body of bag;
4. Insert lining into body and sew zipper panel, cut loose threads, clean and pack in polybags/export cartons.

Scenario 2:

Country B

1. Cut material into parts;
2. Emboss logo and sew to body panel;
3. Sew handles in rolls, cut specific handles and sew onto top of body panels without inside collar;
4. Sew side seams of body panels up to collar area to create body of bag.

Country A

1. Glue cardboard to top inside collar;
2. Sew zipper on inside collar;
3. Sew inside lining and country of origin label and sew lining to top collar;
4. Connect lining and collar to body of bag, cut loose threads, clean and pack in polybags/export cartons.

STYLE L-2142-2

Description:

An insulated cosmetic carry-all measuring approximately 5-1/2 inches in length, 5 inches in width and 8-1/2 inches across. The bag features a handle on the top and an expandable pocket in the front. The outer surface of the bag and the piping that is inserted into certain seams are made from a woven man-made fiber fabric, and the bag is lined with PVC and foam insulation.

Processes:

Scenario 1:

Country A

1. Cut material into parts;
2. Sew front flap, foam, and piping to create pocket flap;
3. Sew velcro on to PVC lining flap;
4. Sew front pocket, foam, PVC sheeting and velcro to create pocket panel;
5. Sew handles and piping with PVC filler inside.

Country B

1. Link front pocket panel, side panels, pocket flap, zipper and tab and piping by sewing to create front/side panel;
2. Sew handle to main body panel, foam and PVC; 3. Sew panel, lining, and foam to create main body panel;
4. Connect main body panel to front/side panel; 5. Sew in country of origin label, trim inside bag and sew PVC binding to cover seams;
6. Turn bag, cut loose threads, clean and pack in polybags/export cartons.

Scenario 2:

Country B

1. Cut material into parts;
2. Sew handle to main body panel, foam and PVC; 3. Create main panel by sewing main panel fabric, lining and foam.

Country A

1. Sew velcro on to PVC lining flap;
2. Sew front flap, foam and piping to create pocket flap;
3. Sew front pocket panel, side pocket, foam, PVC and velcro to create front/side panel;
4. Connect main body panel to front/side panel and sew to zipper and tab and piping;
5. Sew in country of origin label, trim inside bag and sew PVC binding to cover seams;
6. Turn bag, cut loose threads, clean and pack in polybags/export cartons.

STYLE L-2528-6

Description:

A small dome-shaped pouch, measuring approximately 6-1/2 inches across, 5 inches in length and 3 inches in width. The outer surface of the bag is a woven man-made fiber fabric with an inner lining of PVC. A logo (non-textile embossed patch or small textile label) is stitched to the outside of the bag and the top is secured by a zipper with a pull tab.

Processes:

Scenario 1:

Country A

1. Cut material into parts;
2. Sew logo into main body panel;
3. Sew zipper, collar lining and tab to create zipper panel assembly;
4. Stitch side/gusset panels to PVC lining.

Country B

1. Stitch main body panel to PVC lining;
2. Stitch lined main body panel, lined side/gusset panels and zipper panel together;
3. Attach country of origin label and stitch binding to cover inside seams;
4. Turn bag, cut loose threads, clean and pack in polybags/export cartons.

Scenario 2:

Country B

1. Cut material into parts;
2. Fold logo and sew to body panel;
3. Sew zipper to collar and attach zipper tab creating zipper assembly;

Country A

1. Stitch side/gusset panels to PVC lining and connect with zipper panel;
2. Stitch main body panel to PVC lining;
3. Stitch lined body panel, lined side gusset panels and zipper panel together;
4. Attach country of origin label and stitch binding to cover inside seams;
5. Cut loose threads, clean and pack in polybags/export cartons.

STYLE L-2506

Description:

A small duffel-shaped pouch with a logo (a circular non-textile embossed patch or small textile label) on one side. The bag's opening has a zipper with a pull tab closure, and its outer surface is a woven man-made fiber fabric lined with PVC. The bag has circular panels that are reinforced with textile cord/webbing inserted into the seams.

Processes:

Scenario 1:

Country A

1. Cut material into parts;
2. Sew logo to body panel;
3. Sew body panel, lining and zipper together and attach zipper tab;
4. Sew end panels and linings together;
5. Sew webbing/piping and stitch it to end panels.

Country B

1. Sew body panel, end panels, and turn bag; 2. Sew in country of origin label and bind seams; 3. Turn bag, cut loose threads, finish, pack in polybags/export cartons.

Scenario 2:

Country B

1. Sew logo to body panel;
2. Sew zipper to body panel and lining, attach zipper tab.

Country A

1. Sew end panels and lining together;
2. Sew webbing and stitch it to end panels; 3. Sew body panel and end panels and turn bag; 4. Sew in country of origin label and bind seams; 5. Turn bag, cut loose threads, finish and pack in polybags/export cartons.

STYLE L-1665-16

Description:

A small flat rectangular shaped cosmetic bag made primarily from one body panel measuring approximately 9 inches across and 7 inches in length. The outer surface of the bag is a woven man-made fiber fabric with a PVC lining. The bag features a top opening secured by a zipper with a pull tab and the interior seams are covered with PVC binding.

Production:

Scenario 1:

Country A

1. Cut material into body panel;
2. Fold and sew body panel to lining and zipper; 3. Add zipper tab and turn bag.

Country B

1. Sew country of origin label and close sides by sewing;
2. Stitch binding over seams for clean finish; 3. Turn bag, trim loose threads, finish and pack into polybags/export cartons.

Scenario 2:

Country B

1. Cut material into body panel;
2. Fold and sew panel, lining and zipper tape; 3. Add zipper tab.

Country A

1. Turn bag, sew country of origin label and close sides by sewing;
2. Stitch binding over seams;
3. Turn bag, finish and pack into polybags/export cartons.

ISSUE:

What is the country of origin of the submitted merchandise?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "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." As the subject merchandise is not wholly obtained or produced in a single country, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "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 foreign material 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". Each of the subject items would be classified in a provision in heading 4202, HTSUSA. The tariff shift for heading 4202 textile goods requires the merchandise to be wholly assembled in a single country. As the subject merchanidse is not wholly assembled in a single country, paragraph (c)(2) of Section 102.21 is inapplicable.

Paragraph (c)(3) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (c)(2) of this section:

(i) If the good was knit to shape, the country of origin of the good is the single country, territory or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory , or insular possession in which the good was wholly assembled."

As the subject merchandise is neither knit nor wholly assembled in a single country, section (c)(3) of Section 102.21 is inapplicable.

Paragraph (c)(4) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory, or insular possession in which the most important assembly or manufacturing process occurred". In the case of the subject merchandise, the most important manufacturing operations are those which connect the primary body panels, thereby establishing the identity of the merchandise. As such, for Style L-1570, the most important manufacturing operations occur in Country B in scenario 1 and 2. For styles L-214-2, L-2528-6 and L-2506, the most important manufacturing operations occur in Country B in scenario 1, and Country A in scenario 2.

Paragraph (c)(5) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred". In the case of Style L-1665-16, the assembly operations occurring in countries A and B are equally important. Because this particular style is made primarily of one body panel, both the process of folding the body panel and connecting it to the zipper, and the process of closing the side seams are equally important. In this situation (c)(5) directs us to the last country in which an important manufacturing operation occurred. Accordingly, in scenario 1 the country of origin is Country B and in scenario 2 the country of origin is Country A,

HOLDING:

The country of origin of Styles L-1570, L-2142-2, L-2528-6 and L-2506 is determined by Section 102.21 (c)(4), that is, the country in which the most important manufacturing process occurred. Accordingly, for Style L-1570 country of origin is conferred by Country B in scenarios 1 and 2. For Style L-2142-2 country of origin is conferred by Country B in scenario 1 and Country A in scenario 2. For Style L-2528-6 country of origin is conferred by Country B in scenario 1 and Country A in scenario 2. For Style L-2506 country of origin is conferred by Country B in scenario 1 and Country A in scenario 2.

The country of origin of Style L-1665-16 is determined by Section 102.21 (c)(5), that is, the last country in which an important manufacturing process occurred. Accordingly, country of origin is conferred by Country B in scenario 1 and Country A in scenario 2.

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 and complete in every material respect.

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 is the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

Sincerely,

John Durant, Director

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