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NY D89351




January 9, 2001

CLA2-RR:NC:TA:351 D89351

CATEGORY: CLASSIFICATION

Mr. Joel K. Simon
Serko & Simon LLP
One World Trade Center, Suite 3371
New York, New York 10048

RE: Classification and country of origin determination for two cooler bags; 19 CFR 102.21(c)(2); tariff shift.

Dear Mr. Simon:

This is in reply to your letter dated March 16,1999, on behalf of your client, A.D. Sutton and Sons, of New York City, requesting a classification and country of origin determination for two insulated lunch bags, both designated as style 6870R, which will be imported into the United States. In a telephone conversation with National Import Specialist Mitchel Bayer, your office has dropped the request for a ruling on the marking requirements. Your samples were damaged during examination, but will be returned as requested.

FACTS:

Your letter contained two samples of rectangularly shaped, soft-sided, insulated lunch containers, both of man-made fibers. The first measures approximately 7” x 7” x 5”. The top closes with a zipper along each side and a hook-and-loop fastener at the end. It has two webbed handles and a mesh side pocket. The second sample measures approximately 6” x 9” x 4”. It has a fold-over flap closure which seals with a hook-and-loop fastener. It has a single web carrying handle.

Each container is manufactured from three distinct layers of material. The outer layer consists of man-made fiber woven fabric, one side of which has been coated, covered or laminated with a plastic material. The woven textile surface of these panels faces outward. The middle layer of this product is a thin layer of plastic foam that measures approximately 0.125” in thickness and functions as an insulating and cushioning material. The final inner layer of the bag is a lining of plastic sheeting.

Both items are designed primarily to store, preserve and carry food and/or beverages.

The manufacturing operations for the production of these products involve the manufacture of all of the component materials in Taiwan including the weaving and coating of the fabrics and the fabrication of the plastic sheeting that forms the lining layer of this fabric. The materials will then be shipped to China where they will be cut to shape and assembled into the completed lunch bags.

ISSUE:

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

CLASSIFICATION:

Recent litigation in SGI, Incorporated v. United States, 122 F.3d, 1468, (Fed. Cir. 97) found that portable soft-sided vinyl insulated coolers for the storage of food and beverages were excluded from the scope of heading 4202 and classified as plastic kitchen and tableware. The principles of this decision were extended to similar containers composed of textile materials. Since the containers before us for consideration are composed substantially of textile materials, we would consider them to be of textile fabric. Further, since the outer surface is primarily textile fabric, they would be considered to have an outer surface of textile material.

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

This insulated lunch bags fall within textile category designation 670. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.GOV. In addition, 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 and should also be verified at the time of shipment.

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 all the fabric used in the manufacture of these insulated bags was formed in a single country, that is, Taiwan, as per the terms of the tariff shift requirement, country of origin is conferred in Taiwan.

HOLDING:

The country of origin of the insulated lunch containers 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 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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