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NY F89116




July 28, 2000

CLA2-63-RR:NC:TA:351 F89116

CATEGORY: CLASSIFICATION

Paula M. Connelly, Esq.
Middleton & Shrull
Attorneys at Law
44 Mall Road
Suite 208
Burlington, MA 01803-4530

RE: Classification and country of origin determination for insulated bags; 19 CFR 102.21(c)(2) and (c)(5).

Dear Ms. Connelly:

This is in reply to your letter dated May 17, 2000, requesting a classification and country of origin determination for insulated bags which will be imported into the United States.

FACTS:

The subject merchandise is three insulated bags, styles 9485, 9466, and 9470, that are used to store and transport food and beverages. They are all assembled in Sri Lanka of materials from Taiwan, Korea, and Sri Lanka. You state that the outer layer of each bag is a fabric known in the trade as “vylon,” which you claim is an industry name for various plastic-coated textile materials, and that that plastic is either polyurethane or polyvinyl chloride.

Style 9485 is made of four layers of material. The outer layer of the front, back, and top consists of the vylon, colored blue. The plastic has been determined to be noncellular. The plastic surface of the material faces outward and the plastic has been embossed to simulate the look of a woven fabric. The bottom and two side panels are constructed the same as above but the textile surface faces outward and these panels are black. The middle layer of this product is a layer of plastic foam. The third and fourth layers, which form the interior, are made of plastic sheeting material; the inner layer is of a plastic reflective sheeting material, while the final layer of the interior is a clear plastic sheeting. It has a detachable web fabric adjustable shoulder strap and a textile web fabric carry handle and is secured by means of a zipper closure on three sides. It has zippered pockets on the exterior front and top and an open pocket on the back made of clear plastic sheeting material. It measures approximately 13½”W x 9½”T x 10½”D.

Style 9466 is also made of three layers of material. It features two insulated compartments, one above the other. Both compartments have a zipper closure on three sides. The outer layer of the top compartment, which is yellow, is the vylon. The plastic has been determined to be noncellular. The plastic surface of the material faces outward and the plastic has been embossed to simulate the look of a woven fabric. The middle layer of this product is a layer of plastic foam. The third layer, which forms the interior of the main compartment, is made of plastic sheeting material. It closes with a flap; it features a zippered pocket on the flap. The bottom compartment is constructed the same as above but the textile surface faces outward and it is black. The bag has an adjustable web fabric carry handle. It measures approximately 7½”W x 12½”T x 5½”D.

Style 9470 has an outer layer of the vylon. It is blue with black trim of the same fabric. The plastic has been determined to be noncellular. The plastic surface of the material faces outward and the plastic has been embossed to simulate the look of a woven fabric. The middle layer of this product is a layer of plastic foam. The third layer, which forms the interior of the main compartment, is made of plastic sheeting material. It closes with a zipper on three sides of the top. It features an exterior pocket with a flap closure fastened with strips similar to VELCRO brand fastener. Attached onto the bag is a web fabric carry handle. It measures approximately 9”W x 8”T x 6”D.

You have presented two different scenarios for the manufacture of the bags. The manufacturing operations for the bags are as follows:

In your first scenario, style 9485 will be assembled in Sri Lanka. The blue fabric will be manufactured in Taiwan and the black fabric will be manufactured in Korea. Both will be shipped in rolls to be cut to shape in Sri Lanka. The remaining components will be from Taiwan, Korea, and Sri Lanka.

Style 9466 will also be assembled in Sri Lanka of fabric from Taiwan (yellow) and Korea (black). Again, these fabrics will be shipped on rolls and cut to shape in Sri Lanka. The remaining components will be from Taiwan, Korea, and Sri Lanka.

Style 9470 will also be assembled in Sri Lanka of fabric form Taiwan (blue) and Korea (black). Again, these fabrics will be shipped on rolls and cut to shape in Sri Lanka. The remaining components will be from Taiwan, Korea, and Sri Lanka.

In your second scenario, all styles will again be assembled in Sri Lanka. For style 9485, both the blue and black fabric will be manufactured in Taiwan and shipped to Sri Lanka where it will be cut to shape. The strapping for the handles and the black trim around the openings will be manufactured in Korea and sent to Sri Lanka in rolls where each will be cut to shape; the velcro strips will also be manufactured in Korea. The remaining components will be from Taiwan, Korea, and Sri Lanka.

Both the yellow and black fabric of style 9466 will be manufactured in Taiwan and shipped to Sri Lanka in rolls to be cut to shape. The black strapping material and the black trim will be manufactured in Korea and sent to Sri Lanka on rolls to be cut to shape. The remaining components will be from Taiwan, Korea, and Sri Lanka.

Both the blue and black fabric of style 9470 will be manufactured in Taiwan and shipped to Sri Lanka in rolls to be cut to shape. The black strapping material and the black trim will be manufactured in Korea and sent to Sri Lanka on rolls to be cut to shape. The remaining components will be from Taiwan, Korea, and Sri Lanka.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for all three insulated bags will be 6307.90.9989, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other made-up articles: . . . other. The rate of duty will be seven percent ad valorem.

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

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 bags in the second scenario are assembled in Sri Lanka of fabric woven in a single country, that is, Taiwan, as per the terms of the tariff shift requirement, country of origin is conferred in Taiwan.

However, in the first scenario there was no single country in which the fabric comprising the goods was formed by a fabric-making process. Thus, Section 102.21(c)(2) is inapplicable to that scenario.

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, and is classifiable in subheading 6307.90, 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.” As the most important process is the fabric weaving which, under the first scenario takes place in two countries, a single country of origin determination cannot be made based on Section 102.21(c)(4).

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”. Accordingly, in the case of the subject bags in the first scenario, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Sri Lanka.

HOLDING:

The country of origin of the insulated bags in the first scenario, in which fabric from Taiwan and Korea is imported into Sri Lanka for assembly into the finished product, is Sri Lanka. The country of origin in the second scenario, in which the fabric is imported into Sri Lanka solely from Taiwan, is Taiwan. Based upon international textile trade agreements products of both Sri Lanka and 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 section 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 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 Mitchel Bayer at 212-637-7086.

Sincerely,

Robert B. Swierupski
Director,

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