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HQ 959569





September 3, 1996

CLA-2 RR:TC:TE 959569 CAB

CATEGORY: CLASSIFICATION

Diane L. Weinberg, Esq.
Sandler, Travis & Rosenberg, P.A.
505 Park Avenue
New York, NY 10022-1106

RE: Country of origin of duffle bag, tote bag, and waist pack; Section 102.21(c)(4), Customs Regulations

Dear Ms. Weinberg:

This is in response to your inquiry of July 30, 1996, requesting a country of origin determination pursuant to Section 102.21, Customs Regulations, for various types of bags. This request is on behalf of your client, Jong Lih Plastic Enterprise Co., Ltd. Samples were submitted for examination.

FACTS:

Style JL-85076 is a tote bag with a zipper top closure, two front zipper pockets and one inner pocket with a zipper closure, webbing handles, a gusseted bottom, and a full interior lining. All of the inseams of the bag are hemmed with PVC-sheeting tapes. The manufacturing scenarios for Style JL-85076 is as follows:

1. Design and make patterns
2. Source all material and accessories, including fabrics, linings, webbings, zippers, paperboard, zipper sliders, labels, and hang tags
3. Fabrics are dyed and finished
4. Cut all fabric, lining, paperboard, zippers, and webbing to pattern sizes and lengths
5. Form the top zipper-closure panel
6. Form the front panel by sewing lining and fabric together 7. Form the two front pockets with zippers and sew them together
8. Sewing the webbing handles onto the front panel 9. Form the bottom panel and wrap paper board with the PVC-sheeting panel and heat-seal the edges

10. Form the back panel by sewing lining and fabric together 11. Sew the webbing handles onto back panel 12. Sew pockets to the front panel
13. Sew the front and back compartments together 14. Attach the country of origin label
15. Sew the bottom panel with the main compartment 16. Sew the inseam and hem with PVC-sheeting tapes 17. Sew the top zipper-closure compartment with the main compartment together
18. Trim the threads
19. Turn over the tote bag
20. Double stitch on the top edge of the tote bag to set the zipper-closure compartment
21. Inspect the tote bag and attach the hang tag 22. Packaging and load cartons to container and export

SCENARIO 1

Country A - Operations 1-3 and 13-22
Country B - Operations 4-12

SCENARIO 2

Country A - Operations 1-3 and 11-22
Country B - Operations 4-10

Style No. JL-82118 is a duffle bag with top zipper opening, two side pockets secured by a zipper, webbing top handles, name card insert pouch, and adjustable and detachable shoulder strap, and a gusseted bottom with board. All the gussets of the bag are hemmed with PVC-sheeting tapes. The manufacturing operations performed in countries A and B are as follows:

1. Design and make patterns
2. Source and purchase all composing material and accessories, including fabrics, lining, Velcro, webbings, zippers, paperboard, PVC piping, zipper slides, labels, hang tags, metal and plastic hardwares, and rivets
3. Fabrics are dyed and finished
4. Cut all the fabric, lining, paperboard, Velcro, zippers, and webbing to patterned sizes and lengths
5. Sew the PVC name card panel and webbing panel onto the front panel
6. Sew the webbing handles and attach Velcro-handle compartment onto the back webbed handle which is attached onto the back panel
7. Sew the shoulder strap panel
8. Form the left and right side zippered pockets 9. Form the top zipper compartment
10. Form the bottom panel
11. Sew one side of the bottom panel onto the front panel 12. Sew the other side of the bottom panel onto the back panel 13. Double stitch on both edges of the front and back panels 14. Sew the inseam and hem with PVC-sheeting tapes 15. Join the right side pocket with the right main compartment 16. Sew the country of origin label at the seam 17. Sew the left side pocket with the left main compartment 18. Sew the inseams and hem with PVC-sheeting tapes 19. Turn over the duffle bag and attach the shoulder strap 20. Insert the bottom board into the duffle bag 21. Inspect the duffle bag and attach hang tag 22. Packaging and load cartons to container and export

SCENARIO I

Country A - Operations 1-3 and 11-22
Country B - Operations 4-10

SCENARIO II

Country A - Operations 1-3 and 9-22
Country B - Operations 4-8

Style No. JL-85075 is a waist pack with front zipper pocket, a top zipper opening, adjustable by a webbing belt with a side-open buckle. All the inseams of the waist pack are hemmed with PVC-sheeting tapes. The manufacturing operations performed in countries A and B are as follows:

1. Design and make patterns
2. Source all composing materials and accessories, including fabrics, webbings, zippers, zipper sliders, labels, hang tags, and plastic hardwares
3. Fabrics are dyed and finished
4. Cut all the fabric, lining, webbing, and zippers to patterned sizes and lengths
5. Form the front pocket
6. Sew the zipper onto the upper front pocket 7. Sew side panels with linings onto front panel 8. Sew webbing panels
9. Form top panel
10. Pleat and sew the front pocket to the front panel at the top edge
11. Sew the PVC piping onto the bottom edge of the front pocket 12. Attach the webbing panels to front panels 13. Sew the top panel with the front panel together with additional double stitching to create front body 14. Sew the country of origin label to the seam 15. Sew the back panel with the main compartment together to complete the waist pack body
16. Sew the inseam and hem with PVC-sheeting tapes 17. Trim the threads
18. Turn the waist pack
19. Connect both side-open buckle panels together 20. Inspect the waist pack and attach hang tag 21. Packaging and load carton to container and export

SCENARIO I

Country A - Operations 1-3 and 13-21
Country B - Operations 4-12

SCENARIO II

Country A - Operations 1-3 and 10-21
Country B - Operations 4-9

ISSUE:

What is the country of origin for the subject merchandise under the proposed scenarios?

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 tote bag 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.

Each of the subject bags is classifiable under a subheading of Heading 4202 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The tariff shift rule for the concerned subheadings require the merchandise to be wholly assembled in a single country. As the subject merchandise is not wholly assembled in a single country, Section 102.21(c)(2) is not applicable.

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 case, the creation and connecting of the major panels in Country A under each scenario for each style is the most important manufacturing process in the production of the subject goods. Thus, in accordance with Section 102.21(c)(4), the country of origin of
Styles JL-85076, JL-82118, JL-85075 is Country A. This determination is consistent with recent Headquarters Ruling Letter (HRL) 958626, issued on May 2, 1996, where several bags were at issue and Customs determined the country of origin of bags similar to the subject bags to be the country where the primary body panels were connected.

HOLDING:

The country of origin of Styles JL-85076, JL-82118, JL-85075 is Country A.

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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