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NY C89218


July 31, 1998

CLA-2-RR:NC:3:341 C89218

CATEGORY: CLASSIFICATION

Mr. George R. Tuttle III

George R. Tuttle, P.C.

Three Embarcadero Center, Suite 1160

San Francisco California 94111

RE: Classification and country of origin determination for an insulated bottle holder and a tote bag: 19 C.F.R. §102.21(c)(4)

Dear Mr. Tuttle:

This is in reply to your letter dated June 26, 1998 and subsequent Fax transmission of July 23, 1998, requesting a classification and country of origin determination for articles identified as styles 4266, insulated bottle holder and style 12551, tote bag. The request is on behalf of AMPAC Enterprise of South San Francisco, California. A sample of style 4266, bottle holder, has been submitted with the original request. An illustration depicting style 12551, tote bag, was submitted by FAX. A manufacturers statement describing the assembly and manufacturing process for each style has also been received.

FACTS:

Style 4266 an insulated bottle holder manufactured of a man-made textile material outer shell, plastic foam inner insulation and a lining of polyvinyl chloride (PVC) plastic sheeting. The bag is closed by means of a top drawstring and has an adjustable shoulder strap of man-made textile materials.

Style 12551 is a tote bag manufactured of man-made textile materials. It is described as being an over sized tote bag with a front zipper pocket and a top opening secured by a zipper. The bag has double carrying handles and a floating bottom board which is covered by PVC.

The manufacturing operations for both styles are essentially the same and are performed in each Country, Taiwan and China as follows:

TAIWAN:

The nylon fabric material, plastic buckles, nylon cord, label, piping, webbing, PVC lining, thread, cotton rope filler, card board and foam are sourced in Taiwan. The fabric is cut to shape and the webbing and cord are cut to length. The handle is cut to length and sewn in rolls and the shoulder strap is sewn unto the body panel with buckles. The cardboard panel is cut and wrapped with PVC sheet. A complete unassembled bag is produced in Taiwan.

CHINA:

Each of the bag body components are sewn together to assemble the bag complete with appropriate cords, linings, and zippers. The assembled bags are trimmed of loose threads, cleaned and packed in polybags and export cartons.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for style 42661, insulated bottle bag, will be 4202.92.9026, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other containers, other, with outer surface of textile materials, of man-made fibers. The rate of duty will be 19 percent ad valorem.

The appropriate subheading for style 12551, tote bag, will be 4202.92.3031, HTSUSA, which provides for travel, sport and similar bags, with outer surface of textile materials, other, of man-made fibers. The rate of duty will be 19 percent ad valorem.

Goods classified within Tariff numbers 4202.92.3031 and 4202.92.9026 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

4202.92.15-4202.92.90 A change to subheading 4202.92.15- 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.

Section 102.21(e) states that the good must be wholly assembled in a single country. Accordingly, as the bags are assembled in two countries, it does not satisfy paragraph (e). 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 creation of all main body components of the unfinished bags constitutes the most important assembly process. Accordingly, the country of origin of styles 4266, insulated bottle bag and 12551, tote bag, is Taiwan.

HOLDING:

The country of origin of each style 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 C.F.R. §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 C.F.R. 177). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R. §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 C.F.R. §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,


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