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NY D80588


August 2, 1998

CLA-2-RR:NC:TA:352 D80588

CATEGORY: CLASSIFICATION

George R. Tuttle III

George R. Tuttle

Three Embarcadero Center, Suite 1160

San Francisco, California 94111

RE: Classification and country of origin determination for insulated cooler bags; 19 C.F.R. §102.21(c)(2); tariff shift

Dear Mr. Tuttle:

This is in reply to your letter dated June 26, on behalf of your client AMPAC Enterprises, requesting a classification and country of origin determination for two insulated cooler bags designated as style numbers 45021PKT and 45073ETS which will be imported into the United States.

FACTS:

Style Number 45021PKT is an soft sided insulated cooler bag designed to maintain the temperature of a six-pack of soda or beer. This cooler bag is constructed using three distinct layers of material on the four sides and the top and 4 layers on the bottom of the bag. The outer layer consists of a 100% nylon woven fabric. The second layer or middle layer of the sides and top of this product is manufactured from a layer of plastic foam (1/4 inch thick). This layer functions as an insulating and cushioning material. The third layer is made of plastic sheeting and forms the interior of the cooler bag. The bottom of the bag has an additional layer of cardboard which is placed between the foam layer and the plastic sheeting inner layer. The cardboard stiffens the bottom and helps to maintain the shape of the bag bottom. The bag is rectangular in shape and measures approximately 9 inches X 6 inches X 6.25 inches. The cooler bag features a woven carrying strap and a zipper closure which runs 3/4 of the way around the top of the bag. The bag also has a zippered pocket on the front of the bag. The inquirer indicates that the cooler is designed to keep a 6-pack of beverages cold when transporting them.

Style Number 45073ETS is a soft sided insulated lunch bag designed to maintain the temperature of the food packed in it as well as to preserve and protect the contents. This product is constructed from three distinct layers of material. The outer layer consists of a 100% nylon woven fabric which has been coated, covered or laminated according to the Customs laboratory with a layer of compact plastic. The textile fabric surface of this material faces outward and the plastic surface which is hidden on the interior has been embossed. The middle layer of this product is a thin layer of plastic foam (1/4 inch thick). This layer functions as an insulating and cushioning material. The third layer which forms the interior of the cooler bag is manufactured from plastic sheeting and functions to assure easy cleaning of the bag and to prevent spills from leaking. The bag is rectangular in shape and measures approximately 9 inches in height by 6.5 inches wide by 4.5 inches thick. This cooler bag features a woven carrying strap and hook and loop closures to seal the top of the bag as well as a zippered front pocket. The inquirer indicates that this cooler bag is designed to maintain the temperature of a person's lunch and to preserve and protect the contents.

The manufacturing operations for the bag designated as style 45021PKT are as follows:

Processes performed in Taiwan:

1. The nylon fabric for the outer shell is woven in Taiwan.

2. The zipper tape is woven in Taiwan and the zipper teeth are assembled to the zipper tape in Taiwan.

3. The polypropylene webbing for the handle is woven in Taiwan.

4. The foam plastic insulating material is formed in Taiwan and the PVC plastic lining is formed in Taiwan.

5. The fabric is cut into components and the zipper and webbing are cut to length in Taiwan.

6. The front and side panels including the zipper pocket, the handle made from the webbing, the foam insulating layer, the pvc plastic lining and the zipper are sewn together in Taiwan.

7. The top/back and bottom of the bag including the foam insulation and the pvc plastic lining is sewn together in Taiwan.

Processes performed in China:

1. The two subassemblies, the front and side assembly and the top/back/bottom assembly are sewn together

2. Bag is trimmed cleaned and inspected and packed.

The manufacturing processes for the bag designated as style number 45073ETS:

Processes performed in Taiwan:

1. Nylon fabric for outer shell is woven, velcro is formed, shoulder strap webbing is woven, zipper tape is woven and zipper is assembled, pvc plastic inner is extruded and plastic foam is formed.

2. Main body panel is assembled including the logo, front, bottom and back panel. This subassembly includes the zippered front pocket and the foam and inner pvc plastic lining.

3. Side panels are assembled by sewing foam plastic layer and pvc lining as well as webbing handles to this subassembly

Processes done in China:

1. Two subassemblies (front/bottom/back and sides) are assembled together.

2. Trim bag of loose threads, clean and pack.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for both bags will be 6307.90.9907, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other made up articles...other, cooler bags with an outer surface of textile materials, of man-made fiber. The rate of duty will be 7 percent ad valorem.

These bags 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

6307.90 The country of origin of a good classifiable under subheading 6307.90 is the country, territory or insular possession in which the fabric comprising the good was formed by a fabric making process.

As the fabric comprising both bags was wholly formed in a single country, that is, Taiwan, as per the terms of the rule embodied in 102.21 (e), country of origin for both bags is conferred in Taiwan.

HOLDING:

The country of origin of both the cooler bags 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 Alan Tytelman at 212-466-5896.

Sincerely,


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