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HQ 960804

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October 1, 1998

CLA-2 RR:CR:TE 960804 GGD

CATEGORY: CLASSIFICATION

Michael J. Laska
Mercury Luggage Manufacturing
4843 Victor Street
Jacksonville, Florida 32207

RE: Country of Origin Determination for Backpacks; 19 CFR 102.21(c)(4); Most Important Assembly or Manufacturing Process; 19 CFR 102.21(c)(5); Last Important Assembly or Manufacturing Process

Dear Mr. Laska:

This is in response to your letter dated June 9, 1997, requesting country of origin determinations for five backpacks which have been, and will continue to be, imported into the United States on an ongoing basis on or after July 1, 1996. Samples were submitted for examination with the request.

FACTS:

The five backpacks at issue - identified as styles SH-0003, SH-0006, SH-0005, SH-6615, and SH-5511, are essentially composed of polyester material, hardware, buckles, zippers, webbing, and embroidery, all of which are sourced in Taiwan. In addition to these materials, style SH-0006 contains mesh fabric, grommets, and an extra padded pocket, styles SH-0005 and SH-6615 contain suede on and/or near their bottom panels, and as tabs for their zippers, and style SH-0003 contains elastic, a looped key ring, an extra main compartment, a nylon and mesh fabric organizer (with a zippered pocket for coins, an open slot pocket for credit or i.d. cards, and two tubular pockets for pens). Another flat compartment is revealed when the organizer's top is pulled away from the back wall. The additional materials are also sourced in

Taiwan. "Multiple Declarations" prepared by the Taiwanese manufacturer state that the manufacturing operations are as follows:

STYLE SH-0003

TAIWAN

- material is sourced (100 percent polyester fabric, hardware, buckles, zippers, webbing, embroidery, mesh fabric, and elastic);
- fabric is cut into component pieces;
- first component: front panel (including zippered pocket, extra main compartment, embroidered "North Crest" logo, zipper, buckle, elastic, fabric loop with key ring, organizer with zippered pocket, slot pockets, and pen pockets) is sewn together;
- second component: back panel - including shoulder straps with webbing and buckle - is sewn together; - third component: bottom panel with gussets (two fabric pieces) and zipper are sewn together.

CHINA

- front panel, back panel, and bottom panel with gussets are sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.

STYLE SH-0006

TAIWAN

- material is sourced (100 percent polyester fabric, hardware, buckles, zippers, webbing, embroidery, padding, and mesh);
- fabric is cut into component pieces;
- first component: front panel (including drawstring pocket with grommets and zippered pocket with an external mesh zippered pocket, embroidered "North Crest" logo, zipper, and buckle) is sewn together;
- second component: back panel - including shoulder straps with webbing and buckle - is sewn together; - third component: bottom panel with gussets (two fabric pieces) and zipper are sewn together.

CHINA

- front panel, back panel, and bottom panel with gussets are sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.

STYLE SH-5511

TAIWAN

- material is sourced (100 percent polyester fabric, hardware, buckles, zippers, webbing, and embroidery); - fabric is cut into component pieces;
- first component: front panel - including pocket with embroidered "North Crest" logo and zipper - is sewn together;
- second component: back panel - including shoulder straps with webbing and buckle - is sewn together; - third component: bottom panel with gussets (two fabric pieces) and zipper are sewn together.

CHINA

- front panel, back panel, and bottom panel with gussets are sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.

STYLE SH-0005

TAIWAN

- material is sourced (polyester fabric, hardware, buckles, zippers, webbing, embroidery, and suede); - fabric is cut into component pieces;
- first component: body panel (including front panel with pocket and embroidered "North Crest" logo), suede bottom panel, and back panel (including shoulder straps with webbing and buckle) are sewn together;
- second component: gussets (three fabric pieces) with zipper and two suede pieces are sewn together;

CHINA

- first component (body panel) and second component (gussets with zipper and suede pieces) are sewn together; - loose threads are cut;
- articles are packed into shipping cartons.

STYLE SH-6615

TAIWAN

- material is sourced (polyester fabric, hardware, buckles, zippers, webbing, embroidery, and suede); - fabric is cut into component pieces;
- first component: front panel (including pocket with embroidered "North Crest" logo), zipper, and suede piece are sewn together
- second component: back panel (including shoulder straps with webbing and buckle) is sewn together; - third component: bottom panel with gussets (two fabric pieces), two suede pieces, and zipper are sewn together;

CHINA

- first component (front panel), second component (back panel), and third component (bottom panel with gussets) are sewn together;
- loose threads are cut;
- articles are packed into shipping cartons.

ISSUE:

What is the country of origin of the merchandise?

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 or 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." Since none of the merchandise is wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) is not applicable.

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 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."

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:"

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 five styles of backpacks are classified in subheading 4202.92.3020, HTSUSA. Since none of the merchandise is wholly assembled in a single country, however, the terms of the tariff shift are not met.

Paragraph (c)(3) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section:

(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 wholly assembled.

Since the merchandise is neither knit to shape, nor wholly assembled in a single country, section 102.21(c)(3) is not applicable.

Section 102.21(c)(4) states that "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 Headquarters Ruling Letter (HQ) 959676, issued December 24, 1996, Customs determined the country of origin of a backpack similar to backpack style SH-5511 to be the country in which the front panel, back panel, and side panel were all sewn together. For style SH-5511, therefore, the most important assembly process occurs in China, where the front panel, the back panel, and the bottom panel with gussets are sewn together.

In HQ 959842, issued October 29, 1996, we determined the country of origin of a backpack similar to style SH-0003, whose panels were more complex than those of style SH-5511 (i.e., more pockets, suede pieces, an organizer, etc.), to be the country in which the panels were assembled. Although style SH-0003 contains no suede pieces, the most important assembly process occurs in Taiwan, where each of the three panels, particularly the front panel (including the large zippered pocket with embroidered "North Crest" logo; the fabric loop with key ring; the organizer with zippered pocket, slot pockets, and pen pockets; the extra main compartment, and the zipper, buckle, and elastic), is sewn together.

With regard to styles SH-0005 and SH-6615, the most important assembly process also occurs in Taiwan. There, for style SH-0005, the body panel (including the front panel with zippered pocket and embroidery), suede bottom panel, and the back panel (with shoulder straps and webbing) are sewn together to comprise the first component; and the gussets with zipper and two suede pieces are sewn together to comprise the second component. For style SH-6615, Taiwan is where the front panel (including
zippered pocket with embroidery and suede piece) is sewn together, the back panel (with straps, webbing, and buckle) is sewn together, and the bottom panel (with two suede pieces, gussets and zipper) is sewn together.

With respect to style SH-0006, we find that the assembly of each of the three panels in Taiwan, particularly the front panel (including the drawstring insulated pocket with grommets, the zippered pocket with external mesh zippered pocket, the embroidery, zipper, and buckle), is equal in importance to the assembly process which occurs in China, where the front panel, the back panel, and the bottom panel with gussets are sewn together. Since for style SH-0006, the single country, territory, or insular possession in which the most important assembly or manufacturing process occurred cannot be determined, section 102.21(c)(4) is not applicable.

Section 102.21(c)(5) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (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."

For style SH-0006, the last country in which an important assembly process occurred is China, in which the front panel, the back panel, and the bottom panel with gussets are sewn together.

HOLDING:

The country of origin of the two backpacks identified by style numbers SH-5511 and SH-0006, is China.

The country of origin of the three backpacks identified by style numbers SH-0003, SH-0005, and SH-6615, 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 19 CFR 177.9(b)(1), which states that each ruling letter is issued on the assumption that all of the information furnished and incorporated 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. A change in the facts previously furnished may affect the determination of country of origin. Thus, if there is any change in the facts provided to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

Sincerely,

John Durant, Director
Commercial Rulings Division

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See also:

• Tariff No.: 4202.92.15 - Travel, sports and similar bags with outer surface of cotton, not of pile or tufted construction
• Tariff No.: 4202.92.30 - Travel, sports and similar bags with outer surface of textile materials other than of vegetable fibers
• Tariff No.: 6209.20.50 - Babies' garments & clothing acc. nesoi, of cotton, incl. sunsuits & sim app, sets & parts of sets, & diapers, not knitted or crocheted