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HQ 959666





October 3, 1996
CLA-2 RR:TC:TE 959666 jb

CATEGORY: CLASSIFICATION

Edward Fandino
Pronto Cargo Brokers, Inc.
7330 N.W. 66th Street
Miami, Florida 33166-3009

RE: Country of origin determination for backpacks; 19 CFR process

Dear Mr. Fandino:

This is in reply to your letter dated July 30, 1996, on behalf of your client, Excel Handbags Co., Inc., requesting a country of origin determination for certain backpacks which will be imported into the United States. Samples were submitted to this office for examination.

FACTS:

The merchandise at issue consists of two styles of backpacks, referenced style numbers 7369 and 7397, made of nylon material, suede, zippers, binding, and webbing, sourced in Taiwan. The manufacturing process is as follows:

STYLE NUMBER 7369

TAIWAN

- material is sourced (polyester nylon fabric for the outer shell, zippers, suede, buckles, nylon cord, woven label for the front panel, polypropylene nylon webbing for the straps; webbing for the side pocket); - fabric is cut into component pieces;
- front suede flap, with buckle, is sewn onto back panel; - polypropylene webbing straps are cut to size and sewn onto back panel;
- front panel, including pockets, webbing pocket and zippers are sewn together;
- woven label is sewn onto front panel;
- bottom panel is sewn.

CHINA

- back panel, front panel and bottom panel are sewn together;
- nylon cord is laced through eyelets;
- loose threads are cut;
- packing in polybags.

STYLE NUMBER 7397

TAIWAN

- material is sourced (polyester nylon fabric for the outer shell, zippers, suede, decorative woven Aztec patch, vinyl logo, polypropylene nylon webbing for the straps); - fabric is cut into component pieces;
- polypropylene webbing straps are cut to size and sewn onto back panel;
- side panels and front panel are sewn together; suede strip is sewn to bottom of front panel;
- pockets for side panels, including zippers, are sewn and attached to side panels;
- pockets, including zippers, are sewn and attached to the front panel; vinyl logo is embossed and sewn onto top front pocket of front panel;
- decorative woven Aztec patch is sewn onto the suede front flap;
- bottom panel is sewn.

CHINA

- back panel, front panel and bottom panel are sewn together;
- loose threads are cut;
- packing in polybags.

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 (codified at 19 U.S.C. 3592) 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, 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":

4202.92.15-4202.92.30 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 merchandise is classified in subheading 4202.92.3020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). As the subject backpacks are not wholly assembled in a single country, the terms of the tariff shift are not met.

Section 102.21(c)(3) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (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;

(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 single 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 102.21(c)(3) is inapplicable.

Section 102.21(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 style number 7369, the most important assembly process occurs at the time in which the front suede flap is sewn onto the back panel, the polypropylene webbing straps are sewn onto the back panel, the front panel, including pockets, webbing pocket, and zippers are sewn together, and the bottom panel is sewn, in Taiwan. In the case of style number 7397, the most important assembly process occurs at the time the polypropylene webbing straps are sewn onto the back panel, side panels and front panel are sewn together, the suede strip is sewn to the bottom of the front panel, the pockets for the side panels, including zippers are sewn and attached to the side panels, the pockets, including zippers are sewn and attached to the front panel, the decorative woven Aztec patch is sewn onto the suede front flap, and the bottom panel is sewn, in Taiwan.

HOLDING:

The country of origin of the subject merchandise, referenced style numbers 7369 and 7397, is Taiwan.

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 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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