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HQ 958786



May 24, 1996
CLA-2 RR:TC:TE 958786 SK

CATEGORY: CLASSIFICATION

Melvin S. Mogil
California Innovations, Inc.
4211 Yonge Street, Suite 610
Willowdale, On Canada M2P 2A9

RE: Country of origin determination; Section 102.21, Customs Regulations; backpacks.

Dear Mr. Mogil:

This is in response to your letter of January 4, 1996, in which you request a country of origin determination for backpacks identified as "BACKPACK PLUS FOR KIDS" and "DAYPACK PLUS." A sample of a completed backpack was submitted to this office for examination.

FACTS:

The subject articles are designed in the manner of traditional backpacks (i.e. to be worn on the back with adjustable, padded straps fitted over the wearer's shoulders). The backpacks' outer surfaces are of man-made textile materials. They feature three-sided zipper closures which secure their main compartments. The backpacks also feature exterior compartments which have zipper closures. The bottom exterior compartment attaches to the main part of the backpack by means of hook and loop strips and textile braided adjustable straps. This exterior compartment also functions as a detachable insulated cooler. The backpacks are classifiable under subheading 4202.92.3020, HTSUSA, which provides for, inter alia, "[T]ravel, sports and similar bags: with outer surface of textile materials: other... other: of man-made fibers: backpacks."

The following information was provided regarding the subject merchandise's manufacturing operations:

1) Approximately 89.5% of the raw materials that comprise these products are purchased in Taiwan;

2) Approximately 10.5% of the raw materials that comprise these products are purchased in China (we note that no specific itemization of which components and/or fabrics were sourced in Taiwan or China was provided, nor was information provided as to where the fabrics comprising these articles were formed);

3) The raw materials that are purchased in Taiwan are cut in Taiwan;

4) In China, the backpacks are assembled to completion.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Pursuant to the Uruguay Round Agreements Act, new rules of origin will be effective for textile products entered, or withdrawn from warehouse for consumption, on or after July 1, 1996. These rules were published in the Federal Register, 60 Fed. Reg. 46188 (September 5, 1995). Section 102.21, Customs Regulations (19 CFR Section 102.21), sets forth the general rules which determine country of origin. The country of origin of a textile product will be determined by a hierarchy of rules set forth in paragraphs (c)(1) through (c)(5) of Section 102.21.

Section 102.21(c)(1) sets forth the general rule for determining the country of origin of a textile product in which the good is wholly obtained or produced in a single country, territory, or insular possession.

Section 102.21(c)(2) provides for instances where the country of origin of a textile product cannot be determined under Section 102.21(c)(1). Section 102.21 (c)(2) provides:

"[W]here 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."

Paragraph (e), in pertinent part, states that the country, territory or insular possession in which occurs "[A] change to subheading 4202.92.15 through 4202.92.30 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," will be the country of origin for the textile article. As stated supra, the subject backpacks are classifiable under subheading 4202.92.3020, HTSUSA. The cut fabric pieces and components imported from Taiwan into China are classifiable in a different heading than 4202, HTSUSA, and the backpacks are wholly assembled in China. Accordingly, based on the facts stated above, effective July 1, 1996, the country of origin of the "BACKPACK PLUS FOR KIDS" and "DAYPACK PLUS" will be China.

HOLDING:

The country of origin of the "BACKPACK PLUS FOR KIDS" and "DAYPACK PLUS" is China.

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 is issued on the assumption that all of the information furnished in the 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 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 Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

Sincerely,

John Durant, Director
Tariff Classification Appeals
Division

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