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HQ 959016




August 19, 1996

CLA-2 RR:TC:TE 959016 CAB

CATEGORY: CLASSIFICATION

William D. Outman, II, Esq.
Baker & McKenzie
815 Connecticut Avenue, N.W.
Washington, D.C. 20006-4078

RE: Country of origin determination for luggage; Section 102.21(c)(4), Customs Regulations

Dear Mr. Outman:

This is in response to your inquiry of March 7, 1996, requesting a country of origin determination on behalf of Samsonite Corporation, for several models of soft-sided luggage. At the time of submission, there were no samples presented for examination. However, in a conference with Customs attorneys on July 16, 1996, you provided Customs with three samples, the garment bag, the duffle bag, and an upright case.

FACTS:

The Samsonite luggage at issue includes the personal case, ultravalet garment bag, wheeled duffle, upright suitcase with wheels (26" and 30"), garment bag with two wheels, 28" Pullman suitcase, and carry-on upright suitcase on wheels.

The manufacturing process for the soft-sided luggage at issue is as follows: (1) In Taiwan, ramie 600 D polyester fabric with polyurethane backing and 210 D nylon fabric with polyurethane coating are woven, dyed, coated, and finished; (2) sheets of polyvinyl chloride are produced by extruding, dyeing and laminating machines; these sheets are subsequently cut into components for the base of the luggage and as reinforcement pieces; (3) polyethylene materials are produced and cut to shape; (4) zippers are manufactured and assembled; (5) polypropylene webbing and elastic tie tape are woven, dyed and finished; (6) all other hardware including steel frames, plastic frames, coil wire, wheels, studs and handles are manufactured and assembled; (7), finally, padding is manufactured and the plywood base is imported into and cut to shape in Taiwan. In Vietnam, the manufacturing steps are as follows: (1) fabric panel components will be glued and heat-sealed; (2) after pre-sewing procedures, the fabric panels will be sewn together; (3) webbing, zippers, and other components parts will also be sewn to the assembled panels; (4) finally, the plastic or metal frame will be bent to a c-shape. In Taiwan, the final assembly process will occur. In the case of the upright case, this final process includes riveting the plastic or metal frame to a plywood base. The base will then be fitted into the sewn luggage panel and permanently sewn into position. Where applicable, the wheels will be joined to the base and the handles to the frame. In the case of the other luggage pieces, the sub-assembled top component will be joined to the sub-assembled bottom component. The completed suitcase will then be packed for export to the United States.

ISSUE:

What is the country of origin of the luggage at issue?

LAW AND ANALYSIS

Pursuant to Section 334 of the Uruguay Round Agreements Act (codified at 19 USC Section 3592), new rules of origin were 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 to determine country of origin. Thus, the country of origin of a textile product is 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 or apparel product in which the good was wholly obtained or produced. As the subject luggage has not been wholly obtained or produced in a single country, this section is inapplicable. Section 102.21(c)(2) provides for instances where the country of origin of a textile or apparel product cannot be determined under Section 102.21(c)(1).

Section 102.21(c)(2) provides, in pertinent part:

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.

Section 102l.21(e) provides, in pertinent part:

Specific rules by tariff classification. 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:

A change to subheading 4202.12.40 through 4202.12.80 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.

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.

The subject luggage is either classifiable in subheading 4202.92.20 or 4202.12.80 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), depending on the article. Subheading 4202.92.20, HTSUSA, provides for among other articles, travel bags, with outer surface of textile materials. Subheading 4202.12.80, HTSUSA, provides for among other articles, suitcases, with outer surface of textile materials. Section 102.21(c)(2) is not applicable to the instant merchandise as the luggage is not wholly assembled in a single country.

Section 102.21(c)(3) provides for goods that have been wholly assembled (with certain enumerated exceptions) in a single country, insular possession, or territory or which are knit to shape. Section 102.21(c)(3) is therefore inapplicable to the subject merchandise as it has not been wholly assembled in a single country, insular possession, or territory, nor is it a knit to shape good.

Section 102.21(c)(4) provides the first multi-country rule. Section 102.21(c)(4), states the following:

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 this instance, the polyester fabric with polyurethane backing and the nylon fabric with polyurethane coating used for the luggage are woven, dyed, coated with polyurethane and finished in Taiwan. This fabric is cut into components in Taiwan and then transported to Vietnam for further manufacturing. Also in Taiwan, the plastic or metal frame is riveted to a plywood base. The base is then fitted and sewn into the sewn luggage panel. Where applicable, the wheels will be joined to the base and the handles to the frame.

You refer to the procedures in Vietnam as "only three simple procedures". However, the assembly in Vietnam consists of preparing multiple fabric components for sewing by utilizing glue and heat-sealing machines. The assembly process also includes sewing the majority of the fabric pieces, attaching webbing, zippers, and other hardware pieces. In addition, the plastic or metal-frame will also be bent to a c-shape in Vietnam. The assembly in Vietnam is more important than the assembly and manufacturing operations in Taiwan as this is the country where the assembly process results in unattached cut fabric components being assembled into an identifiable, albeit unfinished, luggage piece. Therefore, pursuant to Section 102.21(c)(4), the country of origin of the luggage at issue is Vietnam.

HOLDING:

The country of origin of the luggage at issue 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 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

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