HQ 960381 - Modification of HQ 958802, dated May 9, 1996; country of origin of tents; floor made of - United States International Trade Commision Rulings

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HQ 960381

May 28, 1997

CLA-2 RR:TC:TE 960381 jb

CATEGORY: CLASSIFICATION

Wendy Wieland Martin
Kellwood
600 Kellwood Parkway
Chesterfield, Missouri 63017

RE: Modification of HQ 958802, dated May 9, 1996; country of origin of tents; floor made of
PE sheet; 102.21(c)(2); tariff shift

Dear Ms Martin:

On May 9, 1996, this office issued to you Headquarters Ruling Letter 958802 regarding the country of origin of several styles of tents covering six manufacturing scenarios. A review of the file has revealed that contrary to what is stated in the ruling, the floor for the subject tents is made out of PE sheet and not a fabric. Although this change in the facts does not affect all of the country of origin determinations set out in that ruling, scenarios II and V are incorrect. Accordingly, this letter will set out the proper analysis and country of origin determination for those two affected scenarios.

Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-82, 107 Stat. 2057, 2186 (1993) (hereinafter section 625), notice of the proposed modification of HQ 958802 was published April 23, 1997, in the CUSTOMS BULLETIN, Volume 31, Number 17.

FACTS:

The manufacturing operations discussed in HQ 958802 are as follows:

STYLE NUMBER 8900- BACKPACKING DOME TENT

Scenario I

Country A- material for roof and walls is sourced; Country B- material for roof and walls is sourced; Country C- material for floor is sourced; Country D- cutting, assembly and packaging.

Scenario II

Country A- material for roof and walls is sourced; Country C- material for floor is sourced; Country D- cutting, assembly and packaging.

STYLE NUMBER 89001- CABIN TENT

Scenario III

Country A- material for roof and walls is sourced; Country B- material for walls is sourced; Country C- material for floor is sourced; Country D- cutting, assembly and packaging.

STYLE NUMBER 89004- FAMILY SIZE DOME TENT

Scenario IV

Country A- material for roof and walls is sourced; Country B- material for roof and walls is sourced; Country C- material for floor is sourced; Country D- cutting, assembly and packaging.

STYLE NUMBER 89001- CABIN TENT, OR STYLE NUMBER 89004- FAMILY SIZE DOME TENT

Scenario V

Country A- material for roof and walls is sourced; Country C- material for floor is sourced; Country D- cutting, assembly and packaging.

STYLE NUMBER 89000- BACKPACKING DOME TENT, OR STYLE NUMBER 89001- CABIN TENT, OR STYLE NUMBER 89004 FAMILY SIZE DOME TENT

Scenario VI

Country A- material for roof, walls and floor is sourced; Country D- cutting, assembly and packaging. In five of the scenarios addressed in HQ 958802 as the fabric for the tents' roof, walls and floor was formed in two or more countries, a section 102.21(c)(5) (multi-country) analysis was applied which determined that the country of origin of the tents was the country in which the assembly occurred. The determinations in that ruling were premised on the fact that all of the materials which comprised the tents were fabric.

In regard to scenario VI the determination is accurate as all of the fabric and the PE sheet was sourced in Country A, and thus country of origin was conferred in Country A. Similarly, the determinations in scenarios I, III, and IV are accurate as the fabric was sourced in two countries and the PE sheet in a third country, thus, as per section 102.21(c)(5) the country of origin was Country D, that is, the last country in which an important assembly operation occurred.

Scenarios II and V however, where the manufacturing operation for the tents involves fabric for the roof and walls sourced in Country A and PE sheet for the floor sourced in Country C, are incorrect both in the analysis and the determination. This letter serves to rectify these two scenarios.

ISSUE:

What is the proper country of origin for the tents in scenarios II and V?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act 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 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:"

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.

The subject tents are classified in heading 6306, HTSUSA. The tents in scenarios II and V are made of both a fabric and a non-fabric material. As the fabric is formed in a single country, as per the terms of the tariff shift, the country of origin of the tents in scenarios II and V is the country in which the fabric making process occurred, that is, Country A.

HOLDING:

Accordingly, HQ 958802, dated May 9, 1996, is modified to reflect Country A as the country of origin for the tents in scenarios II and V.

In accordance with section 625, this ruling will become effective 60 days after its publication in the CUSTOMS BULLETIN. Publication of rulings or decisions pursuant to section 625 does not constitute a change of practice or position in accordance with section 177.10(c)(1), Customs Regulations (19 CFR

Sincerely,

John Durant, Director
Tariff Classification Appeals

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