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HQ 961093




February 6, 1998
CLA-2 RR:TC:TE 961093 jb

CATEGORY: CLASSIFICATION

Leonard L. Rosenberg, Esq.
Sandler Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, Florida 33126-2022

RE: Country of origin determination of a small woven nylon case; 19 C.F.R. 102.21; 102.21(c)(4), country of origin is the country in which the most important manufacturing process occurred;
102.21(c)(5), country of origin is the last country in which an important manufacturing process occurred

Dear Mr. Rosenberg:

This is in response to your letter, dated August 14, 1997, on behalf of your client, Jaclyn, Inc., in which you request a country of origin determination for a small woven nylon case. This office was provided with samples of the unfinished and finished article, as well as detailed descriptions of the manufacturing processes which occur in "Country A" and "Country B". As per your request, the samples will be returned under separate cover. We regret the delay in our response.

FACTS:

The subject nylon case, referenced style P873, is a small rectangular, soft-sided carrying case measuring approximately 6-1/2 inches wide, 4-1/2 inches high and 1-1/2 inches deep with a zipper around three sides of its perimeter for closure. The exterior of the bag is made from woven nylon fabric and has a PVC piping around three sides of the perimeter. The interior is lined with PVC sheeting which covers a layer of 1/8 inch-thick foam and also features clear PVC pockets on each side. A small nylon zippered pouch measuring approximately 5-1/2 inches by 3 inches in size is attached to one side of the interior with its zippered side down, facing the clear PVC pocket.

The merchandise and production processes are described as follows:

Scenario 1

Country A cut material into parts create zipper panel by sewing zipper tape, fabric strips and PVC piping; add zipper pull sew clear PVC panel, PVC sheet liner, foam and shell fabric together to create main body panel

Country B create inner pouch by sewing zipper to small fabric panel sew inner pouch to inside of body panel and sew in country of origin label sew body panel and zipper panel together to create the bag sew PVC sheet binding to cover seams for clear finish turn the bag; cut loose threads; clean and pack bag in poly-bag/export carton

Scenario 2

Country A cut material into parts create zipper panel by sewing zipper tape, fabric strips and PVC piping; add zipper pull create inner pouch by sewing zipper to small fabric panel

Country B sew clear PVC panel, PVC sheet liner, foam and shell fabric together to create main body panel sew inner pouch to inside of body panel and sew in country of origin label sew body panel and zipper panel together to create the bag sew PVC sheet binding to cover seams for clear finish turn the bag; cut loose threads; clean and pack bag in poly-bag/export carton

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 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, 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".

4202.92.60- 4202.92.90 A change to subheading 4202.92.60 through 4202.92.90 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 nylon case is classified in subheading 4202.92.9025, HTSUSA. As the tariff shift for this good requires the merchandise to be wholly assembled in a single country, the subject nylon case which undergoes assembly operations in both country A and country B, does not meet the terms of the tariff shift.

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

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

Paragraph (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 the subject merchandise, in scenario II, the most important manufacturing operations are those which create the main body panel and those operations wherein the inner pouch is sewn to the inside of the body panel, the body panel and zipper are sewn together to create the bag, and the PVC sheet binding is sewn to cover the seams. As such, in scenario II, the most important manufacturing operations occur in Country B. In scenario I however, it is the opinion of this office that the operations involving the creation of the zipper panel and the creation of the main body panel, in Country A, are equally important to the operations occurring in Country B, that is, creating the inner pouch, sewing the inner pouch to the inside of the body panel, sewing the body panel and zipper panel together to create the bag, and sewing the PVC sheet binding to cover the seams. As such "the most important manufacturing operation" cannot be determined.

Paragraph (c)(5) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (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". As we have stated that in the case of scenario II the assembly operations occurring in countries A and B are equally important, the country of origin is the last country in which an important manufacturing operation occurred, that is Country B.

HOLDING:

The country of origin of the nylon case, referenced style P873, in both scenarios I and II, is Country B.

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 is 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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