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NY C83144




February 2, 1998

CLA-2-RR:NC:3:341 C83144

CATEGORY: CLASSIFICATION

Mr. Rolando Portal
HLM Cargo Clearance Brokers, Inc.
5567 Northwest 72nd Ave.
Miami, Fl. 33166

RE: Classification and country of origin determination for backpacks; 19 CFR 102.21(c)(4)

Dear Mr. Portal:

This is in reply to your letter dated December 30, 1997, requesting a classification and country of origin determination for nylon backpacks imported into the United States. The request is on behalf of Excel Handbag Co.,Inc.

FACTS:

The subject merchandise consists of five styles of backpacks manufactured of man-made textile materials. The styles are identified as 123-23, 123-24, 124-25, 124-26 and 124-31.

The manufacturing operations for the backpacks are as follows:

TAIWAN:

All materials used in the manufacturing of these backpacks are produced in Taiwan. The materials are cut to shape in Taiwan and each style is sub-assembled into two or three subassemblies which constitute the whole bag in an unassembled condition.

CHINA:

The sub-assemblies are shipped to China wherein they are sewn together to form the completed bag. All loose threads are cut and the bags are packed into shipping cartons.

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the nylon backpacks will be 4202.92.3020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for travel, sport and similar bags with outer surface of textile materials, of man-made fibers, backpacks . The rate of duty will be 19 percent ad valorem.

Goods classified within tariff number 4202.92.3020, HTSUSA, fall within textile category designation 670. The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

COUNTRY OF ORIGIN - 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 materials 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) in pertinent part 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":

HTSUS Tariff shift and/or other requirements

4202.92.15-4202.92.30 A change 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 or insular possession.

The backpacks are not wholly assembled in a single country or insular possession. Accordingly, as the backpacks do not meet the tariff shift, Section 102.21(c)(2) is inapplicable.

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; 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 102.21 (c)(3) is inapplicable.

Section 102.21 (c)(4) states, "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, the unassembled subassemblies are an otherwise complete backpack and constitute(s) the most important assembly or manufacturing process(es). Accordingly, the country of origin of the backpacks is Taiwan.

HOLDING:

The country of origin of the backpacks is Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa.

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 sections states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 177). 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.

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kevin Gorman at 212-466-5893.

Sincerely,

Robert B. Swierupski
Director,

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