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HQ 960044




April 1, 1997

CLA-2 RR:TC:TE 960044 CAB
CATEGORY: CLASSIFICATION
Bong IL Kim
Kimexim International, Inc.
A. Bonifacio Ave. Corner M.L. Quezon Ave. Clark Field, Pampanga, Philippines

RE: Country of origin of tents; Section 102.13; Section 102.21(c)2); Section 102.21(c)(5)

Dear Mr. Kim:

This is in response to your inquiry of December 9, 1996, requesting a country of origin determination for certain tents. No samples were submitted for examination.

FACTS:

The merchandise at issue is comprised of a variety of styles of nylon "toy" tents. The tents are referred to by you as "Hide-Away", "Hide-About", "Hide-Out", "Play-About", "Ocean Wave", "Baby Hut", "Magic Hut", and "Magic Hut 2". The manufacturing processes are as follows:

Scenario 1

Country A - Material for roof is formed
Country B - Material for floor is formed
Country D - Material for sidewall is formed Country E - Material for sidewall is formed Country F - Material for pole sleeves is formed Country L - Cutting, assembly and packing

Scenario 2

Country A - Material for roof is formed
Country B - Material for floor is formed
Country D - Material for sidewall is formed Country F - Material for pole sleeves is formed Country L - Cutting, assembly and packing

Scenario 3

Country A - Material for roof is formed
Country B - Material for floor is formed
Country G - Material for sidewall and pole sleeves is formed Country L - Cutting, assembly and packing

Scenario 4

Country C - Material for roof and floor is formed Country D - Material for sidewall is formed Country E - Material for sidewall is formed Country F - Material for pole sleeves is formed Country L - Cutting, assembly and packing

Scenario 5

Country C - Material for roof and floor is formed Country D - Material for sidewall is formed Country F - Material for pole sleeves formed Country L - Cutting, assembly and packing

Scenario 6

Country C - Material for roof and floor is formed Country G - Material for sidewall and pole sleeves is formed Country L - Cutting, assembly and packing

Scenario 7

Country C - Material for roof and floor is formed Country D - Material for sidewall is formed Country G - Material for sidewall and pole sleeves is formed Country L - Cutting, assembly and packing

Scenario 8

Country F - Material for pole sleeves is formed Country H - Material for roof, floor and sidewall is formed Country L - Cutting, assembly and packing

Scenario 9

Country I - Material for roof, floor, sidewall and polesleeves is formed
Country L - Cutting, assembly and packing

Scenario 10

Country B - Material for floor is formed
Country F - Material for pole sleeves is formed Country J - Material for roof and sidewall is formed Country L - Cutting, assembly and packing

Scenario 11

Country A - Material for roof is formed
Country F - Material for pole sleeves is formed Country K - Material for floor and sidewall is formed Country L - Cutting, assembly and packing

Scenario 12

Country B - Material for floor is formed
Country D - Material for sidewall is formed Country F - Material for pole sleeves is formed Country J - Material for roof and sidewall is formed Country L - Cutting, assembly and packing

Scenario 13

Country A - Material for roof is formed
Country D - Material for sidewall is formed Country F - Material for pole sleeves is formed Country K - Material for floor and sidewall is formed Country L - Cutting, assembly and packing

Scenario 14

Country B - Material for floor is formed
Country G - Material for sidewall and pole sleeves is formed Country J - Material for roof and sidewall is formed Country L - Cutting, assembly and packing

Scenario 15

Country A - Material for roof is formed
Country G - Material for sidewall and pole sleeves is formed Country K - Material for floor and sidewall is formed Country L - Cutting, assembly and packing

Section 102.13, Customs Regulations, sets out the De Minimis rule. Section 102.13 states the following, in pertinent part:

(c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in Section 102.21 or satisfy the other applicable requirements of that section when incorporated into a textile or apparel product covered by that section shall be disregarded in determining the country of origin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good.

In the case of the pole sleeves, Customs is assuming that the total weight of the material used to construct them is not more than 7 percent of the total weight of the tents and therefore, they meet the de minimis rule stipulated in Section 102.13. Consequently, the pole sleeves are being disregarded when determining the country of origin of the finished tents.

ISSUE:

What is the country of origin of the subject merchandise? 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 will be 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 is wholly obtained or produced in a single country, territory, or insular possession. As the subject merchandise is not wholly obtained or produced in a single country, territory, or insular possession, Section 102.21(c)(1) 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 paragraph (c)(1) of this section. Section 102.21 (c)(2) states:

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) states "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.

In this instance, it appears that the subject merchandise is classifiable under Heading 6306 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for tents among other articles. In the case of Scenario 8, since Customs is assuming that the pole sleeve fabric is de minimis, in accordance with Section 102.21(c)(2) and 102.21(e), the country of origin of this tent is Country H. In the case of Scenario 9, the fabric for the tent is formed in a single country, Country I, therefore, in accordance with Section 102.21(c)(2) and 102.21(e), the country of origin for this tent is Country I. However, since the fabrics comprising all of the other tents at issue are formed in various countries, the requirements of Section 102.21(e) have not been met in these instances and Section 102.21(c)(2) is inapplicable.

Section 102.21 (c)(3) provides, 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, 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 country, territory, or insular possession in which the good was assembled.

As the subject merchandise is not knit to shape and Heading 6306, HTSUSA, is specifically excepted in accordance with Section 102.21 (c)(3)(ii), Section 102.21(c)(3) is inapplicable.

Section 102.21 (c)(4) provides the first multi-country rule. Section 102.2(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 tents are composed of fabrics woven in numerous countries. The manufacturing of the fabrics is the most important process in the production of the tents. Since the fabrics for the tents are formed in more than one country, and no one fabric is more important than the other, a single country of origin determination cannot be made based on Section 102.21

Section 102.21 (c)(5) states the following:

Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory, or insular possession in which an important assembly or manufacturing process occurred.

Pursuant to Section 102.21 (c)(5), the country of origin of the subject tents is the last country where an important assembly operation occurred. Accordingly, the country of origin of all the tents with the exception of the tents in Scenarios 8 and 9, is Country L, which is the last country where an important assembly operation occurred.

HOLDING:

The country of origin of the tent of Scenario 8 is Country H in accordance with Section 102.21(c)(2). The country of origin of the tent of Scenario 9 is Country I in accordance with Section 102.21(c)(2). The country of origin of all remaining tents at issue is Country L in accordance with Section 102.21(c)(5).

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 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
Division

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