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HQ 964817

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August 29, 2002

CLA-2 RR:CR:TE 964817 JFS

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.92.3031; 9802.00.80; 9802.00.90

Mr. John Stahl
President
Stahlsac, Inc.
81 Monticello Road
P.O. Box 1673
Weaverville, N.C. 28787

RE: Tariff Classification and Special Tariff Treatment Applicable to a Duffel Bag Assembled in Mexico; NAFTA; Article 509; HQ 964626

Dear Mr. Stahl:

This is in response to your letter dated November 29, 2000, requesting reconsideration of New York Ruling Letter (NY) G84174, dated November 17, 2000, classifying a large duffel bag, described as a “Large Dive Cargo Duffel Bag with Wheels,” Stahlsac part number W 405, and imported from Mexico. You also inquire regarding the bag’s eligibility for preferential tariff treatment under the North American Free Trade Agreement (NAFTA).

You state that the bag portion of the luggage will be assembled in Mexico by your sister company, Stahlsac de Merida, S.A. de C.V. The bag consists of 3 different fabrics, 2 of which are of U.S. origin and one of which (nylon packcloth comprising most of the outer surface of the bag) is of Thai origin. You advise that all of the fabrics are cut to shape in the U.S. prior to being assembled in Mexico. The foam padding utilized in the bags is of Mexican origin. By telephone conversation, you confirmed that foam used to manufacture shoulder straps for your luggage originates in Taiwan and is cut to size in the U.S. There is no shoulder strap with the sample, however there are plastic loops for the attachment of a clip-on shoulder strap. In addition, the carrying bag consists of certain zipper and polypropylene webbing components of U.S. origin, hardware of U.S. and Chinese origin and labels of U.S. and Mexican origin. After the carrying bag is assembled in Mexico with the above-described components, it is imported into the U.S. for final assembly of the wheel system and packaging.

ISSUES:

1. What is the tariff classification of the imported assembled duffel bag?

2. Whether the imported duffel bag is entitled to special tariff treatment under NAFTA, subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUSA), or subheading 9802.00.90, HTSUSA.

LAW AND ANALYSIS:

Tariff Classification

The “Large Dive Cargo Duffel Bag with Wheels,” part number W 405, is classified in subheading 4202.92.3031, HTSUSA, which provides for travel, sports and similar bags with outer surface of textile materials of man-made fibers. The general column one rate of duty is 18.1% ad valorem. The quota/visa category number is 670.

Applicability of: NAFTA; Subheading 9802.00.80; and Subheading 9802.00.90

The legal reasoning and analysis employed in Headquarters Ruling Letter (HQ) 964626, dated August 29, 2002, regarding the applicability of NAFTA, subheading 9802.00.80, HTSUSA, and subheading 9802.00.90, HTSUSA, and involving substantially similar travel bags as the instant duffel bag, is adopted and incorporated by reference. Accordingly, the applicability of NAFTA, subheading 9802.00.80, HTSUSA, and subheading 9802.00.90, HTSUSA, to the duffel bag described herein shall be made in accordance with the principles and legal analysis provided in HQ 964626, which is attached and made part of this ruling letter.

HOLDING:

The legal reasoning and analysis of HQ 964626, dated August 29, 2002, is adopted and incorporated by reference into this ruling.

The “Large Dive Cargo Duffel Bag with Wheels,” part number W 405, is classified in subheading 4202.92.3031, HTSUSA, which provides for travel, sports and similar bags with outer surface of textile materials of man-made fibers. The general column one rate of duty is 18.1% ad valorem. The quota/visa category number is 670. There are no applicable quota or visa requirements for products of World Trade Organization (“WTO”) members. NY G84174 is affirmed.

On the basis of the information provided, the imported duffel bag, part number W 405, is not entitled to special tariff treatment under NAFTA or subheading 9802.00.90, HTSUSA, for the reasons set forth above. However, assuming that the operations performed abroad are acceptable assembly operations or operations incidental thereto, and the documentation requirements of 19 CFR 10.24 are met, the “Large Dive Cargo Duffel Bag with Wheels” may be entered under subheading 9802.00.80, HTSUSAA, with allowances in duty for the cost or value of the U.S.-origin fabric, zipper and polypropylene webbing components, as well as the U.S.-origin hardware and labels and the nylon packcloth components cut in the U.S. from Thai fabric. No allowance in duty may be made under this tariff provision for the cost or value of the foam components of Taiwanese and Mexican origin, the hardware of Chinese origin or the labels of Mexican origin.

A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Myles B. Harmon, Acting Director

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See also:

• Tariff No.: 4202.92.30 - Travel, sports and similar bags with outer surface of textile materials other than of vegetable fibers
• Tariff No.: 9802.00.80 - U.S. articles assembled abroad, which have not lost their physical identity or have not advanced in value or improved in condition abroad
• Tariff No.: 9802.00.90 - Textile and apparel goods, assembled in Mexico in which all fabric components were wholly formed and cut in the United States, etc.