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August 23, 1999

CLA?2-RR:NC:3:353 E85156

CATEGORY: CLASSIFICATION

Mr. John Alsup
Alsup & Alsup, Inc.
P.O. Box 1251
Del Rio, TX 78841

RE: Country of origin marking determination for a Santa suit; 19 CFR 102.21(c)(2); tariff shift; Marking, Article 509.

Dear Mr. Alsup:

This is in reply to your letter dated July 19, 1999, requesting a country of origin marking determination for a Santa suit which will be imported into the United States. The Santa suit was classified in ruling NY C82719; where is was determined that the pullover top will be classified under 6110.30.3055, the pants under 6104.63.2011, the belt under 6217.10.9530, the hat under 9505.10.2500, the wig, beard, mustache and boot top under 9505.90.6000 and the eyebrow whitener under 3304.20.0000.

FACTS:

The subject merchandise consists of a pullover top, pants, belt, hat, wig, beard, mustache, boot top and eyebrow whitener.

The manufacturing operations for the Santa suit are as follows:

The jacket, pants and hat are made from U.S. formed 100% polyester fabric that is cut to shape and assembled in Mexico.

The belt is made of a U.S. formed woven 65% polyester/35% cotton fabric and a metal buckle. The belt is cut to shape and assembled to the buckle in Mexico.

The boot tops are made of U.S. made PVC material with a man-made trim. The boot top is cut to shape and assembled in Mexico. The wig, beard and mustache are made in China. The eyebrow whitener is a product of the U.S.

ISSUE:

What are the country of origin and acceptable marking of the subject merchandise?

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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.

Regarding the knit pullover and pants, 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

6101–6117 (1) If the good is not knit to shape and consists of two or more component parts, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

As the pullover and pants were assembled in a single country, that is, Mexico, as per terms of the tariff shift requirement, country of origin is conferred in Mexico.

Regarding the woven belt, 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:”

HTSUS Tariff shift and/or other requirements

6215–6217 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6215 through 6217 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

As the belt is assembled in a single country, that is, Mexico, as per the terms of the tariff shift requirement, country of origin is conferred in Mexico.

Regarding the hat and boot tops, Section 134.1(b), Customs Regulations (19 C.F.R. §134.1(b)), defines “country of origin” as:

The country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of this part; however for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.

Section 134.1(j), Customs Regulations (19 C.F.R. §134.1(j), provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g), Customs Regulations (19 C.F.R. §134.1(g)), defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules, set forth at 19 C.F.R. Part 102.

Section 102.11, Customs Regulations (19 C.F.R. §102.11), sets forth the required hierarchy for determining whether a good is a good of a NAFTA country for marking purposes. This section states that the country of origin of a good is the country in which:

(1) The good is wholly obtained or produced;

(2 The good is produced exclusively from domestic materials; or

(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

Section 102.1(e), Customs Regulations (19 C.F.R. §102.1(e)) defines “foreign material” as “a material whose country of origin as determined under these rules is not the same country or origin as the country in which the good is produced.”

Here, component parts from the U.S. are exported to Mexico for further processing into a finished hat and boot tops. Because the hat and boot tops are processed in Mexico of material from the U.S., the hat and boot tops are neither wholly obtained or produced, nor produced exclusively from domestic materials. Accordingly, 19 C.F.R. §102.11(a)(3) is the applicable rule that next must be applied to determine the origin of the hat and boot tops.

Pursuant to 19 C.F.R. §102.11(a)(3), the country of origin of a good is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 C.F.R. §102.20, or satisfies any other applicable requirement of that section. In the case before us, because the hat and boot tops are classified under heading 9505, HTSUS, the change in tariff classification must be made in accordance with section 102.20(s), Section XX: Chapters 94 through 96, subheading 9504.10-9506.29, HTSUS, which requires:

HTSUS Tariff Shift and/or other requirements

9504.10–9506.29 A change to subheading 9504.10 through 9506.29 from any other subheading, including another subheading within that group.

Thus, the hat fabric classified in Chapter 58 and the boot top fabric classified in Chapter 59, HTSUSA, undergo an applicable tariff shift when cut and sewn in Mexico. The country of origin of the hat and boot top is conferred in Mexico.

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

Section 134.45(a)(2) of the regulations, provides that "a good of a NAFTA country may be marked with the name of the country of origin in English, French or Spanish. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules.

As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.

You ask whether the following marking is acceptable:

Assembled in Mexico
Wig and Beard/Mustache made in China

C.R. 134.44 (e) states “Assembled articles. Where an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such article may be marked, as appropriate, in a manner such as the following:

(1) Assembled in (country of final assembly); (2) Assembled in (country of final assembly) from components of (name of country or countries of origin of all components); or (3) Made in, or product of, (country of final assembly).

The country of origin and the country of final assembly are both Mexico. Therefore under C.R. 134.43(e), “Assembled in Mexico, Wig and Beard/Mustache made in China” is an acceptable country of origin marking for the imported Santa suit.

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 and 181 of the Customs Regulations (19 C.F.R. 177 and 181). 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 Kenneth Reidlinger at 212-637-7084.

Sincerely,

Robert B. Swierupski
Director,

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See also:

• Tariff No.: 3304.20.00 - Eye make-up preparations
• Tariff No.: 6104.63.20 - Women's or girls' trousers, breeches and shorts, knitted or crocheted, of synthetic fibers, nesoi
• Tariff No.: 6110.30.30 - Sweaters, pullovers and similar articles, knitted or crocheted, of manmade fibers, nesoi
• Tariff No.: 6217.10.95 - Made up clothing accessories (excl of heading 6212 or headbands, ponytail holders & like), containing < 70% wgt of silk, not knit/crochet
• Tariff No.: 9505.10.25 - Arts. for Christmas festivities, ornaments, not of glass or wood
• Tariff No.: 9505.90.60 - Festive, carnival or other entertainment articles nesoi and parts & accessories thereof nesoi