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HQ 959913





December 16, 1996

CLA-2 RR:TC:TE 959913 CAB

CATEGORY: CLASSIFICATION

Marc S. Greenberg
American Shipping Company Inc.
600 Sylvan Avenue
Englewood Cliffs, NJ 07632

RE: Country of origin of baby carriers; Section 102.21(c)(4)

Dear Mr. Greenberg:

This is in response to your inquiry of October 7, 1996, requesting a tariff classification and country of origin ruling for infant baby carriers. Your request is on behalf of Evenflo Company Inc. The tariff classification issue was addressed in NY A88418 of October 22, 1996, consequently, this ruling will only address your country of origin request. You submitted literature and certain unassembled parts used in the manufacturing of the finished baby carriers. The subject merchandise will be entered at the port of Long Beach, California.

FACTS:

The baby carriers at issue which are constructed for the wearer to carry a baby on the front side of their body are referred to as Styles 517101, 515901, and 518101. The outer shell of the baby carriers is composed of 65 percent polyester/35 percent cotton woven fabric on the outer side and a terry cloth material on the interior side. Style 517101 contains padded straps, padded leg openings, an adjustable head and back support, a nursing zipper, and a removable bib. Style 517101 is designed to carry a baby up to the age of 9 months. Style 515901 which is designed to carry a baby up to 18 months of age contains a padded seat, back, headrest, and leg openings. Style 515901 also has a nursing zipper, an exterior pocket, a detachable bib, shoulder and waist straps. Style 518101 is capable of holding a baby in two different positions, it contains a padded seat and leg openings, adjustable straps, and a nursing zipper. Style 518101 is designed for infants up to 12 months old.

The manufacturing process for the subject baby carriers is as follows: Certain fabrics in various colors, a nylon mesh material, lining, and terry cloth material are woven in Taiwan. Also, components which include a buckle, hook and loop fasteners, snaps, webbing, patch embroidery, labels, marketing card, and glide are sourced in Taiwan. Foam material, polyester fibers (not fabric), a non-woven fabric, and a zipper are all manufactured in Thailand. The materials and components are cut, sewn, and fully assembled in Thailand. The finished products are then packed for exportation to the United States.

ISSUE:

What is the country of origin of the subject baby carriers?

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 when the good was wholly obtained or produced in a single country, territory, or insular possession. As the subject baby carriers have not been wholly obtained or produced in a single country, territory, or insular possession, 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 102.21(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:

6307.90 The country of origin of a good classifiable under subheading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

Heading 6307 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), provides for, among other things, other made up articles. This heading is a basket provision for a variety of goods not more specifically provided for in the tariff. In this case, the baby carriers are made up textile articles not specifically provided for elsewhere in the tariff. Thus, they are all properly classifiable under Heading 6307, HTSUSA. Further, they are all specifically classifiable in subheading 6307.90, HTSUSA.

Section 102.21(c)(2) is not applicable to the subject merchandise, since it is comprised of fabrics from both Thailand and Taiwan.

Section 102.21(c)(3) provides for instances when the country of origin determination cannot be made pursuant to paragraphs (c) (1) or (2) of Section 102.21. Section 102.21(c)(3) states the following, in pertinent part:

(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; or

(ii) Except for goods of heading 5609, 5807, 6213, 6214, 6301 through 6306, and 6308, and subheading 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 country, territory, or insular possession in which the good was wholly assembled.

Section 102.21(c)(3) is not applicable in this case since the subject merchandise is not knit to shape goods and subheading 6307.90, the applicable tariff classification subheading, is specifically excluded from the application of Section 102.21(c)(3) pursuant to provision (ii).

Section 102.21(c)(4) governs where the country of origin of a textile or apparel product cannot be determined under paragraph (c) (1), (2) or (3) of this section. Section 102.21(c)(4) provides, in relevant part:

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 country of origin determination is governed by Section 102.21(c)(4). The manufacturing of the outer shell fabrics which include the various woven materials and the inner terry material in Taiwan is the most important manufacturing operation. It is the outer shell fabrics, as opposed to the inner foam material and the non-woven fabric that are fully visible during use, and thus, is a critical factor in the purchasing decision. Moreover, the inner terry material which is highly absorbent is designed to absorb baby spills which is another important consideration when purchasing a baby carrier. In Headquarters Ruling Letter (HQ) 958972, dated April 9, 1996, Customs concluded pursuant to Section 102.21(c)(4), that the country of origin of a tent comprised of fabric from two different countries and assembled in a third country, was the country where the outer shell fabric was formed. Customs specifically stated, " It is the outer shell which actually forms the merchandise and identifies the merchandise to its intended function, that is to protect the user from the elements. In the opinion of this office, basing the country of origin determination on the fabric making process as opposed to the assembly process carries out the clear intent of Section 334 as expressed in Section 334 (b)(2) and Part 102.21(c)(3)(ii)." Accordingly, the fabric making process in Taiwan, where the fabrics for the baby carriers' outer shell are formed, constitutes the most important manufacturing process.

HOLDING:

The country of origin of the subject baby carriers 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 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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