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HQ 960840




November 5, 1997
CLA-2 RR:TC:TE 960840 jb

CATEGORY: CLASSIFICATION

Mr. V. Gibson
Jno. G. McGiffin
1510 Talleyrand Avenue
Jacksonville, Fla. 32201

RE: Country of origin determination for backpacks; 19 CFR process

Dear Mr. Gibson:

This is in reply to your letter dated April 23, 1997, on behalf of your client, Mercury Luggage Manufacturing Co., followed by a subsequent submission by your client of June 9, 1997, requesting a country of origin determination for certain backpacks which will be imported into the United States. Samples were submitted to this office for examination.

FACTS:

The merchandise at issue consists of two styles of backpacks, referenced style numbers SH-0010 and DH-1021NL, made of polyester fabric. The manufacturing process is as follows:

STYLE NUMBER SH-0010

TAIWAN material is sourced fabric is cut into component pieces front panel, including pockets, embroidered "North Crest" logo, zipper, mesh and buckle are sewn together back panel, including shoulder straps with webbing and buckle, are sewn together bottom panel with gussets and zipper, are sewn together

CHINA front panel, back panel and bottom panel with gussets are sewn together loose threads are cut packing in cartons

STYLE NUMBER DH-1021NL

TAIWAN material is sourced fabric is cut into component pieces; body panel, including front panel with zipper, bottom panel, and back panel with shoulder straps, webbing and buckle, are sewn together gussets with zipper are sewn together

CHINA body of bag and gussets are sewn together loose threads are cut packing in polybags.

ISSUE:

What is the country of origin of the submitted merchandise?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 each of 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":

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 subject merchandise is classified in subheading 4202.92.3020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). As the subject backpacks are not wholly assembled in a single country, the terms of the tariff shift are not met.

Section 102.21(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;

(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 single country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is neither knit nor wholly assembled in a single country, Section 102.21(c)(3) is inapplicable.

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 the case of style number SH-0010, the most important assembly process occurs at the time in which the front panel, including pockets, zipper, mesh and buckle are sewn together; the back panel, including the shoulder straps with webbing and buckle are sewn together; and the bottom panel with gussets and zipper are sewn together, in Taiwan. In the case of style number DH-1021NL, the most important assembly process occurs at the time the body panel including the front panel, bottom panel, and back panel are sewn together, and the gussets with zipper are sewn together, in Taiwan.

HOLDING:

The country of origin of the subject merchandise, referenced style numbers SH-0010 and DH-1021NL, 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 section 19 CFR 177.9(b)(1). This section states that a 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

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