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HQ 960991





December 9, 1997

CLA-2 RR:TC:TE 960991

CATEGORY: CLASSIFICATION

Arthur K. Purcell, Esq.
Neville, Peterson & Williams
80 Broad Street, 34th Floor
New York, NY 10004

RE: Country of origin of an infants's bib; 19 CFR ?102.21(c)(4); most important assembly or manufacturing operation; cutting and sewing in same country; piping; bias tape; hook and loop fastener

Dear Mr. Purcell:

This is in reply to your letter dated August 29, 1997 (your file 818-01), requesting a ruling on behalf of Hamco, Inc., concerning the country of origin of an infant's bib.

You submitted a sample of the bib in two stages of production referenced as Exhibit "A" and Exhibit "B."

FACTS:

Two countries participate in the production of the infant's bib. The bib is constructed of 75 percent cotton and 25 percent polyester terry woven fabric. The fabric is formed in China and cut into two panels in the shape of the bib. Embroidery and/or applique work depicting a "teddy bear or other whimsical character" is secured to the front panel. Next, hook and loop fasteners similar to the VELCRO brand are sewn through both panels of the bib where it fits around the infant's neck. At this stage, the two panels are securely joined. Exhibit "A" represents the production in China.

The bib is then sent to Hong Kong where edges of the two panels are sewn together with color coordinated bias tape. The bibs are attached to a header card and packaged for shipment to the United States. Exhibit "B" portrays this stage of production.

ISSUE:

What is the country of origin of the infant's bib produced in China and Hong Kong?

LAW AND ANALYSIS:

Pursuant to Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. ?3592), new rules of origin were effective for textile products entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 ?102.21), sets forth the general rules to determine country of origin. 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.

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 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." Classification of the infant's bib is under subheading 6209.20.5050 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

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":

6209.20.5045-6209.90.9000 (1) If the good consists of two or more component parts, a change to an assembled good of subheading [6209.20.5045 through 6209.90.9000] from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

(2) If the good does not consist of two or more component parts, a change to subheading
6209.20.5045 through
6209.90.9000 from any other heading, except from heading
5007, 5111, through 5113, 5208 through 5212, 5309 through
5311, 5407
through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907 and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process.

In this case, the bib consists of two or more component parts, but it is not wholly assembled in one country. Thus, paragraph (c)(2) is not applicable.

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.

The bib is not knit to shape and, as stated above, it is not wholly assembled in a single country. Therefore, the country of origin cannot be determined under paragraph 3(c).

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." Counsel asserts that the most important assembly and manufacturing processes occur in Hong Kong where the two panels are joined together by sewing. He argues that this transforms mere cut and shaped fabric pieces into a recognizable, useable and saleable bib.

We disagree with counsel. The most important processes occur in China where the fabric is manufactured, cut into the shape of the bib and joined together at the neck with hook and loop fasteners. As evidenced by Exhibit A, the identity and character of the bib are established at this stage of production. In Hong Kong, stitching the bias tape along the edges of the bib is a relatively minor finishing operation. Moreover, we note that in examining Exhibit B it appears that the bias tape was sewn onto the bib before the hook and loop fasteners were attached, since part of the tape is tucked under the completely sewn hook and loop pieces.

HOLDING:

The country of origin of the infant's bib is China, pursuant to Section 102.21(c)(4), the country in which the most important manufacturing and assembly operations occurred.

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 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
Commercial Rulings Division

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