HQ 959462 - Country of origin determination for tents; 19 CFR - United States International Trade Commision Rulings

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HQ 959462

August 28, 1996
CLA-2 RR:TC:TE 959462 jb

CATEGORY: CLASSIFICATION

Lisa C. Schneider
Associated Customhouse Brokers, Inc.
P.O. Box 22670
Rochester, NY 14692-2670

RE: Country of origin determination for tents; 19 CFR

Dear Ms. Schneider:

This is in reply to your letter dated June 3, 1996, on behalf of your client, Johnson Worldwide Associates, requesting a country of origin determination for certain tents which will be imported into the United States.

FACTS:

The subject merchandise consists of backpacking and family tents composed of man-made fibers. The manufacturing operations are as follows:

Scenario I

Backpacking Tents

TAIWAN

- fabric for floor, walls and ceiling is formed.

CHINA

- cutting;
- sewing;
- assembly.

Scenario II

Backpacking and Family Tents

SOUTH KOREA

- fabric for floor, walls and ceiling is formed.

CHINA

- cutting;
- sewing;
- assembly.

Scenario III

Backpacking and Family Tents

SOUTH KOREA

- fabric for floor, walls and ceiling is formed.

SRI LANKA

- cutting;
- sewing;
- assembly.

Scenario IV

Backpacking and Family Tents

SOUTH KOREA

- fabric for floor, walls and ceiling is formed.

INDONESIA

- cutting;
- sewing;
- assembly.

ISSUE:

1. What is the country of origin of the subject merchandise?

2. What is the proper marking of the subject merchandise?

3. Whether the tents are eligible for the Generalized System of Preferences (GSP) in scenarios III and IV?

4. From which country should the visa be obtained, for scenarios II through IV?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act (hereinafter 19 U.S.C. 3592). Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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, territory or insular possession, in any of the four scenarios, 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 of the 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) states that "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":

6301-6306 The country of origin of a good classifiable under heading
6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

The subject tents are classified in heading 6306, Harmonized Tariff Schedule of the United States (HTSUS). As the fabric-making process in each of the above stated scenarios occurs in a single country, the tariff shift rule is applicable. In the case of scenario I country of origin is conferred by the single country where the fabric making occurs, that is, Taiwan. In scenarios II, III and IV, country of origin is conferred by the single country where the fabric making occurs, that is, South Korea.

You ask in your letter whether the proposed markings are consistent with the origin rules set forth in section 102.21, Customs Regulations, and with the country of origin marking requirements in Part 134, Customs Regulations: in the case of scenario I, "Assembled in China from Taiwan fabrics"; in the case of scenario II, "Assembled in China from South Korean fabrics"; in the case of scenario III, "Assembled in Sri Lanka from South Korean fabrics"; in the case of scenario IV, "Assembled in Indonesia from South Korean fabrics". The above proposed markings are not consistent with the origin rules set forth in section 102.21, Customs Regulations, nor with the country of origin marking requirements in Part 134, Customs Regulations. An acceptable marking for these products is "Made in Taiwan" or "Taiwan", in the case of scenario I, and "Made in South Korea" or "South Korea", in the case of scenarios II, III and IV.

HOLDING:

The country of origin of the backpacking tents in scenario I is Taiwan.

The country of origin of the backpacking and family tents in scenarios II, III and IV is South Korea and will require a South Korea visa.

Although Sri Lanka and Indonesia are designated beneficiary developing countries for the purposes of the Generalized System of Preferences (GSP), as provided for in Title V of the Trade Act of 1974, as amended (19 U.S.C. 2461 et seq), the country of origin of the tents in scenarios III and IV has been determined to be South Korea. As such, the backpacking tents are not eligible for preferential duty treatment.

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 sections 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 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

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