HQ 960576 - Modification of HQ 959311, dated June 17, 1996; country of origin of tents; floor made of PE sheet; 102.21(c)(2); tariff shift - United States International Trade Commision Rulings

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HQ 960576

August 1, 1997

CLA-2 RR:TC:TE 960576 jb

CATEGORY: CLASSIFICATION

Jennifer Mullikin
The Coleman Company, Inc.
3600 N. Hydraulic
Wichita, KS 67219

RE: Modification of HQ 959311, dated June 17, 1996; country of origin of tents; floor made of PE sheet; 102.21(c)(2); tariff shift

Dear Ms. Mullikin:

On June 17, 1996, this office issued to you Headquarters Ruling Letter 959311 regarding the country of origin of certain nylon taffeta tents covering four 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, scenario II is incorrect. Accordingly, this letter will set out the proper analysis and country of origin determination for that affected scenario.

FACTS:

The manufacturing operations discussed in HQ 959311 are as follows:

Scenario I

Country A

- material for roof and walls is formed.

Country B

- material for roof and walls is formed.

Country C

- material for floor is formed.

Country D

- cutting, assembly and packing.

Scenario II

Country A

- material for roof and walls is formed.

Country C

- material for floor is formed.

Country D

- cutting, assembly and packing.

Scenario III

Country A

- material for roof and walls is formed.

Country C

- fiberglass poles are formed.

Country D

- cutting, assembly and packing.

Scenario IV

Country A

- material for roof, walls and floor is formed.

Country D

- cutting, assembly and packing.

In scenarios I and II addressed in HQ 959311, 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. In scenarios III and IV as the fabric for the tents was formed in a single country, a section 102.21(c)(2) analysis was applied which determined that the country of origin of the tents was the country in which the fabric making 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 I the determination is accurate because the fabric is sourced in two countries and the PE sheet in a third country, thus, as per section 102.21(c)(5) the country of origin is Country D, that is, the last country in which an important assembly operation occurred. In scenarios III and IV as all of the fabric and the PE sheet are sourced in Country A, country of origin is conferred in Country A.

Scenario II 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, is incorrect both in the analysis and the determination. This letter serves to rectify scenario II.

ISSUE:

What is the proper country of origin for the tents in scenario II?

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 scenario II 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 scenario II is the country in which the fabric making process occurred, that is, Country A.

HOLDING:

Accordingly, HQ 959311, dated June 17, 1996, is modified to reflect Country A as the country of origin for the tents in scenario II.

Sincerely,

John Durant, Director

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