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HQ 960326




August 1, 1997

CLA-2 RR:TC:TE 960326 CAB

CATEGORY: CLASSIFICATION

Ms. Wendy Yeh
Jong Lih USA, Inc.
6 Trotters Lane
Mahwah, NJ 07430

RE: Country of origin of duffle bags; Section 102.21(c)(4), Customs Regulations

Dear Ms. Yeh:

This is in response to your inquiry of January 10, 1997, on behalf of Jong Lih Plastic Enterprise Co., Ltd., requesting a country of origin determination for certain bags pursuant to Section 102.21, Customs Regulations. Samples were submitted for examination.

FACTS:

There are three bags at issue. Style No. JL-82118 is described as a duffle bag with a top zipper opening, two side pockets secured by zippers, a top handle composed of webbing material, a name card insert pouch, an adjustable and detachable shoulder strap, and a gussetted bottom with board. All of the seams are hemmed with PVC sheeting tapes. The manufacturing process is as follows:

Taiwan

- Source all fabrics and accessories
- Cut all of the component parts into patterned sizes - Sew the PVC card panel and webbing panels onto the front and back panels
- Sew the shoulder strap panel
- Sew the zippers and PVC piping onto side pockets to form the left and right side zippered pockets
- Attach separation panels onto both side pocket compartments
- Form the top zipper compartment back panel by sewing the front and back panels together
- Form the bottom panel by attaching four studes

China

- Attach edges of front and back panels to bottom panel - Join the right side pockets with the right compartment - Sew and attach the country of origin label - Join the left side pockets with the left compartment - Insert the shoulder strap and bottom board into bag - Cut loose threads, turn over, inspect, pack finished bag into poly bag, and export

Style No. JL-85118 is a large sports duffle bag with top U-shape zipper opening, two side pockets with a zippered means of closure, a front pocket with a flap secured by Velcro , a mesh water bottle pouch sewn onto the side pocket, a top handle constructed of webbing, an adjustable and detachable padded shoulder strap, and a gusseted bottom with board. All of the seams are hemmed with PVC sheeting tape. The manufacturing process is as follows:

Taiwan

- Source and purchase all composing fabrics and accessories - Cut all the component parts into patterned sizes - Form the front pocket compartment and attach it to the front panel
- Sew the webbing handle panels
- Attach webbing handles onto the front and back panels - Form the top U-shape zipper opening compartment - Sew the top zipper compartment to front and back panels - Sew the side water bottle pouch to the right side pocket panel
- Sew two Velcro inner pockets
- Form the side panels by sewing the mesh and fabric panels together
- Form the side pockets by sewing the piping, zippers, and separation panels together
- Attach front and back panels to bottom panel - Sew the shoulder strap panel

China

- Join the right side pocket to the right compartment - Sew and attach the country of origin label - Join the left side panel to the left compartment - Insert the shoulder strap and bottom board into the bag - Cut loose threads, turn over, inspect, pack finished bag into poly bag, and export

Style JL-85158 is a duffle bag with top U-shape zipper opening, a front zippered pocket, a top handle constructed of webbing, an adjustable and detachable padded shoulder strap, a gusseted bottom with board. All of the seams are hemmed with PVC sheeting tape.

Taiwan

- Source and purchase all composing fabrics and accessories - Cut all the component parts into patterned sizes - Form the front zippered pocket compartment and attach it to the front panel
- Sew the webbing handle panels
- Attach webbing handles onto the front and back panels - Attach front and back panels to bottom panel - Sew PVC piping onto both side panels
- Sew the shoulder strap panel

China

- Join the right side pocket to the right compartment - Sew and attach the country of origin label - Join the left side panel to the left compartment - Insert the shoulder strap and bottom board into the bag - Cut loose threads, turn over, inspect, pack finished bag into poly bag, and export

ISSUE:

What is the country of origin of the subject bags in accordance with Section 102.21, Customs Regulations?

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 bags 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.

Heading 4202 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), provides for, inter alia, travel, sports and similar bags. The subject duffel bags fit within the purview of this heading.

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:"

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 applicable tariff shift rule of heading 4202 requires the merchandise to be wholly assembled in a single country, territory, or insular possession. As the subject merchandise undergoes assembly operations in China and Taiwan, it is not wholly assembled in a single country, territory, or insular possession, thus, 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 the case of Styles JL-85118, and JL-85158, the most important assembly operation occurs in Taiwan. It is in Taiwan where the webbed handle and strap panel are sewn and attached to the front and back panels, the side pocket compartments are assembled, and the separation panels are attached to the side pocket compartments. The assembly operations in China involve the joining of components that have already been substantially constructed in Taiwan. Consequently, in accordance with Section 102.21(c)(4), the country of origin of all the duffle bags at issue is Taiwan, the country where the most important assembly operation occurred. Style JL-82118 has been previously ruled on in HQ 959569, dated September 3, 1996, and in that instance, Customs determined the country of origin was conferred in the country where the creation and connecting of major panels occurred. Therefore, in accordance with HQ 959569, the country of origin Style JL-82118 is China. See, HQ 959979, dated January 16, 1997, where Customs determined the country of origin of a duffle bag, was the country where the component pieces had been substantially sewn and assembled.

HOLDING:

The country of origin of Styles JL-85118 and JL-85158 is Taiwan in accordance with Section 102.21(c)(4). The country of origin of Style JL-82118 is China.

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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