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HQ 964902




May 9, 2002

CLA-2 RR:CR:TE 964902 jsj

CATEGORY: CLASSIFICATION

TARIFF NO.: 6307.90.9889
4202.92.3031

Robert B. Silverman, Esq.
Grunfeld, Desiderio, Lebowitz,
Silverman & Klestadt, L.L.P.
245 Park Avenue
33rd Floor
New York, New York 10167-3397

RE: Golf Bag Parts; Subheadings 6307.90.9889 and 4202.92.3031, HTSUSA; Separate Shipments; Country of Origin; Marking.

Dear Mr. Silverman:

The purpose of this correspondence is to respond to your request to the Customs Service, National Commodity Specialist Division, dated February 7, 2001. The correspondence in issue requested, on the behalf of your client, Zonson Company, LLC, a binding classification ruling concerning the merchandise described as “golf bag bodies.”

This ruling is being issued subsequent to the following: (1) A review of your submission dated February 7, 2001; and (2) An examination of the Zonson Company, LLC golf bag body and hood, and the Z-2 Bag Boy Stand golf bag body and hood. The submission included a partial, general list of the Nike Elite and Z-2 Bag Boy Stand golf bag parts, six invoices addressing parts for the respective golf bags, simplistic assembly chronologies for the assembly of the parts in the United States after importation and labels or hang tags for the completed golf bags. The Nike Elite Bag label states that it is “Made In U.S.A.”

FACTS

The articles in issue, identified by counsel as golf bag bodies and hoods, are parts of golf bags. Customs is advised that subsequent to importation into the United States the golf bag bodies will be assembled with other parts and the result will be completed golf bags.

Nike Elite Golf Bag Body and Hood

The Nike Elite golf bag body is composed primarily of man-made textile material. It has the shape and design of a golf bag, but specifically lacks a top and a bottom. The golf bag body had numerous pockets that secure closed by means of zippers or hook and loop fasteners, an open mesh pocket, two metal “D” rings and a textile handle. Plastic piping covers many of the seams of the golf bag body. The Nike logo is embroidered on one side.

The hood is completely finished. It is large enough to cover all of the golfer’s clubs when in the golf bag. It has four female metal snaps at its base and a zipper with a single pull that begins at the top of the hood and closes down the center. It has a slit cut in the back. The slit appears designed to permit a sling to slip through. A soft plastic material is sewn around the slit. Plastic piping covers the seams of the hood.

It is Customs understanding that the body and hood of the Nike Elite golf bag are products of China. Counsel’s submission advises Customs that the “invoices indicate that the countries of origin of the components” are China and Taiwan.

The Nike Elite golf bag body and hood will be assembled with a plastic divider, top cover, top pad, top pad part, strap, divider, bottom base, bottom panel and an umbrella holder. All of these parts are products of China, except the bottom base, bottom panel and the divider. The bottom base and panel are products of Taiwan. No information was provided as to the country of origin of the divider.

The Nike Elite golf bag body will be composed of ninety (90) percent polyester and ten (10) percent polyurethane. One of the invoices suggests that the bottom base and bottom “pad” are made of polyvinyl chloride plastic.

Subsequent to importation into the United States, the golf body bag will be assembled with the other parts to make a complete golf bag. A production flow chart of the assembly process to take place in the United States to assemble all of the parts into a complete golf bag was provided. The chart is simplistic and lacks detail. It is specifically noted that no information concerning the assembly process of the golf body bag in China was provided. Customs understands, from an examination of the body bag and hood, that the assembly process in China is very involved as it encompasses every step from the manufacture of the fiber, to the creation of the fabric, the measuring, cutting and sewing of the material and the sewing of numerous pockets, zippers, hook and loop fasteners, “D” rings and the attachment of snaps and a handle.

Z-2 Bag Boy Stand Golf Bag Body and Hood

The Z-2 Bag Boy Stand golf bag body is composed primarily of man-made textile material. It has the shape and design of a golf bag, but also lacks a top and a bottom. The golf bag body has numerous pockets that secure closed by means of zippers, four metal “O” rings, two plastic “O” rings, a plastic latch, hook and loop fasteners, and a textile and plastic handle. Textile piping covers many of the seams of the golf bag body. A plastic “Bag Boy” logo is sewn onto the side of the bag.

The hood is completely finished. It is large enough to cover all of the golfer’s clubs when in the golf bag. It has four female metal snaps at its base and a zipper with a single pull that begins at the top of the hood and closes down the center. Textile piping covers the seams of the hood.

It is Customs understanding that the body and hood of the Z-2 Bag Boy Stand golf bag are products of China. Counsel’s submission advises Customs that the “invoices indicate that the countries of origin of the components” are China and Taiwan.

The Z-2 Bag Boy Stand golf bag body and hood will be assembled with a strap, top cover, double full length divider, bottom base, spring, legs, base locker and fiberglass rods. These parts, as indicated in the invoices, are products of Taiwan.

The Z-2 Bag Boy Stand golf bag body will be composed entirely of nylon. Customs has not been provided any information concerning the composition of the other parts of the Z-2 Bag Boy Stand golf bag.

Subsequent to importation into the United States, the golf body bag will be assembled with the other parts to make a complete golf bag. A production flow chart of the assembly process to take place in the United States to assemble all of the parts into a complete golf bag was provided. The chart is simplistic and lacks detail. It is specifically noted that no information concerning the assembly process of the golf body bag in China was provided. Customs understands, from an examination of the body bag and the hood, that the assembly process in China is very involved as it encompasses every step from the manufacture of the fiber, to the creation of the fabric, the measuring, cutting and sewing of the material and the sewing of numerous pockets, zippers, hook and loop fasteners, “O” rings and the handle.

ISSUES

What is the classification, pursuant to the Harmonized Tariff Schedule of the United States Annotated, of the above-described Nike Elite and Z-2 Bag Boy Stand golf bag bodies and hoods ?

What is the country of origin marking requirements of the Nike Elite golf bag and the Z-2 Bag Boy Stand golf bag when assembled into completed golf bags in the United States subsequent to importation ?

LAW AND ANALYSIS

Classification

The Customs Service in Headquarters Ruling Letter 964538 (Nov. 19, 2001) classified substantially similar merchandise in subheading 6307.90.9989, HTSUSA. Subheading 6307.90.9989, HTSUSA, effective January of 2002, is enumerated as subheading 6307.90.9889, HTSUSA. Subheading 6307.90.9889, HTSUSA, provides for:

Other made up articles, including dress patterns:

Other:

Other:
6307.90.98 Other;

Other:
6307.90.9889 Other.

The legal reasoning and analysis employed in HQ 964538 is incorporated by reference. Headquarters Ruling Letter 964538 is attached to and made a part of this ruling letter. See also HQ 964717 (Jan. 28, 2002).

The golf bag parts of the Nike Elite and Z-2 Bag Boy Stand golf bags and hoods, identified in the FACTS section of this ruling letter, to be imported by Zonson Company, LLC, are individually classified in subheading 6307.90.9889, HTSUSA.

Should the Nike Elite golf bag body addressed above be imported together with its top cover and bottom base, either in the same or separate containers, but in the same shipment, all of the merchandise would be classified pursuant to GRI 2(a) as unfinished sports bags. Complete or finished golf bags with outer surfaces of man-made textile materials are classified in heading 4202, HTSUSA, and are further classified at the subheading level in subheading 4202.92.3031, HTSUSA. Subheading 4202.92.3031, HTSUSA, provides for the classification of sports bags with an outer surface of textile materials of man-made fibers.

The reasoning addressed in the immediately preceding paragraph applies equally to the Z-2 Bag Boy Stand golf bag body if imported with the top cover and bottom base. The Z-2 Bag Boy Stand golf bag body, if imported either in the same or separate containers, but in the same shipment, as the top cover and bottom base would be classified pursuant to GRI 2(a) as unfinished sports bags in subheading 4202.92.3031, HTSUSA. Subheading 4202.92.3031, HTSUSA, as previously stated, provides for the classification of sports bags with an outer surface of textile materials of man-made fibers.

The Customs Service notes that this ruling is consistent with a long-line of decisions extending from Internal Advice request HQ 085391 (Dec. 20, 1989). The rulings include: HQ 958915 (Feb. 27, 1996); HQ 959178 (June 24, 1996); HQ 960883 (April 27, 1998); and HQ 962313 (Mar. 4, 1999).

The Customs Service is aware of HQ 957006 (June 27, 1995), HQ 958915 (Feb. 27, 1996) and HQ 961056 (Feb. 11, 1998) classifying similar golf body panels without bottoms in Chapter 42, HTSUSA. Customs is re-examining the classification of this merchandise and considering whether this merchandise should be classified in heading 6307, HTSUSA, of Chapter 63. If a decision is made to re-classify the merchandise addressed in the identified ruling letters, the Customs Service will proceed in accordance with 19 U.S.C. 1625 (c).

Country of Origin and Marking Requirements

Zonson, through its counsel, has advised Customs that the golf bag bodies and hoods of both golf bag styles are of Chinese origin and that the remaining parts of both golf bags are of either Chinese or Taiwanese origin. The second issue Zonson poses to the Customs Service for resolution in this ruling letter is, subsequent to importation and assembly of the golf bag bodies with the other parts, how must the finished golf bags be marked.

The United States Congress in the Tariff Act of 1930, as amended, mandates that “every article of foreign originimported into the United States” shall be marked with its country of origin. 19 U.S.C. 1304(a) (West 1999). Congress delegated to the Secretary of the Treasury the authority to promulgate regulations to give effect to this legislative mandate. See id.

Customs, in order to determine the country of origin with which the assembled components of foreign origin must be marked, must initially determine the classification of the finished article. If the finished article is classified as a textile article, section 3592 of title 19 of the United Stated Code and the implementing Customs regulations are applicable. See 19 U.S.C. 3592 (West 1999); 19 C.F.R. 102.21. Section 3592, as implemented in section 102.21 of the Code of Federal Regulations, establishes the method by which the origin of foreign textile merchandise may be determined. It is only after the foreign components are assembled in the United States that the country of origin for marking purposes may be ascertained.

Country of Origin

The Uruguay Round Agreements Act, particularly section 334, codified at 19 U.S.C. 3592, sets forth the rules of origin for textile and apparel products. Customs, pursuant to the legislative authority extended to the Secretary of the Treasury, published regulations implementing the principles set forth by Congress.

Section 102.21 of Customs regulations establishes, with specifically delineated exceptions, that “this section shall control the determination of the country of origin of imported textile and apparel products for purposes of the Customs laws.” 19 C.F.R. 102.21. Textile and apparel products that are encompassed within the scope of section 102.21 are any goods classifiable in Chapters 50 through 63 of the HTSUSA, as well as goods classifiable under other specifically enunciated subheadings which include subheading 4202.92.30, HTSUSA. See 19 C.F.R. 102.21 (b)(5).

The respective components of foreign origin of the golf bags, subsequent to assembly in the United States, would be classifiable in subheading 4202.92.3031, HTSUSA. Subheading 4202.92.3031, HTSUSA, provides for, in pertinent part, “sports bags: Other: With outer surface of sheeting of plastic or of textile materials: Travel, sports and similar bags: With outer surface of textile materials: Other; Other: Of man-made fibers: Other.” The assembled golf bags are, therefore, considered “textile products” for the purposes of section 102.21 country of origin determinations.

The country of origin of textile and apparel products is determined by the sequential application of paragraphs (c)(1) through (c)(5) of section 102.21. Paragraph (c)(1) provides that “[t]he 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.” Since components of the golf bags are from both China and Taiwan, and possibly a third country since Customs has not been advised of the origin of the Nike Elite divider, the origin of the assembled golf bags cannot be determined by reference to paragraph (c)(1).

Paragraph (c)(2) of section 102.21 provides that where the country of origin cannot be determined according to paragraph (c)(1), resort should next be to paragraph (c)(2). The country of origin, according to paragraph (c)(2), is “the single country, territory or insular possession in which each foreign material 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 section 102.21. Paragraph (e), as applicable to the instant determination, establishes a tariff shift rule which provides “4202.92.15 – 4202.92.30 A change to subheading 4202.92.15 through 4202.92.30 from any other heading provided that the change is the result of the good being wholly assembled in a single country, territory or insular possession.”

Paragraph (c)(2) will not confer the origin of the assembled golf bags because the assembled golf bags do not meet the tariff shift requirement of subheading 4202.92.30, HTSUSA, that they be wholly assembled in a single country, territory or possession. Components of the golf bags will be manufactured, cut, sewn and partially assembled in China and Taiwan with the final assembly process being undertaken in the United States.

Since resort to paragraph (c)(2) did not resolve the origin issue, Customs must turn its attention to paragraph (c)(3). Paragraph (c)(3) addresses goods that are knit to shape and goods that are not knit to shape, but are assembled in a single country, territory or insular possession. The golf bags are not “knit to shape” and when completely assembled will have been assembled in two or three countries. Paragraph (c)(3) does not resolve the country of origin.

“Where the country of origin of a textile or apparel product cannot be determined under paragraph (c) (1), (2) or (3) of this section” paragraph (c)(4) instructs Customs that “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.” It is the determination of the Customs Service that the most important assembly or manufacturing process of the assembled golf bags is the assembly of the golf bag bodies and hoods. See HQ 562028 (Oct. 9, 2001) and HQ 959016 (Aug. 19, 1996).

The assembly of the golf bag bodies and hoods of both golf bags involves the most significant aspect of the assembly and manufacturing process. The principle parts of the golf bags are the textile golf bag bodies and hoods. The textile material of the golf bag bodies and hoods must be manufactured, measured, cut and sewn. The bags and hoods also have numerous pockets, zippers, hook and loop fasteners, “D” rings, “O” rings, piping and handles.

The manufacture in Taiwan of the remaining parts and their assembly in Taiwan and the United States involve comparatively less significant processes. The components manufactured in Taiwan are not of the detail as the golf bag bodies or hoods. The Taiwanese components do not involve the same degree of measuring, cutting, sewing as the golf bag bodies and hoods. The assembly of all the components in the United States is also less significant when compared to the manufacture and assembly operations undertaken in China.

Customs, relying on 19 C.F.R. 102.21 (c)(4), concludes that the most important assembly or manufacturing process in making the completed golf bags is the manufacture and assembly of the golf bag bodies and hoods. The country in which this occurs is China. China is, therefore, the country of origin of the Nike Elite golf bag and the Z-2 Bag Boy Stand golf bag, subsequent to assembly after importation.

Marking

Having determined the country of origin of the assembled golf bags is China, the issue becomes the proper marking of the assembled merchandise. Section 1304 of title 19, as previously addressed, mandates that “every article of foreign originimported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the articlewill permit in such a manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article.” See also 19 C.F.R. 134.11.

Customs regulations Part 134 implements the marking requirements of section 1304. The “ultimate purchaser,” pursuant to 134.1(d), is “generally the last person in the United States who will receive the article in the form in which it was imported.” The assembled golf bags must be legibly, indelibly and permanently marked in a conspicuous place such that a consumer or user in the United States knows that the origin of the articles is China. See generally 62 Fed. Reg. 63755 (1997) (addressing the Federal Trade Commission and “Made in the U.S.A.” and other U. S. origin claims).

Accuracy of Factual Statements

The position set forth in this ruling letter applies to the specific factual circumstances and merchandise identified herein. This and all of Customs ruling letters are “issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.” 19 U.S.C. 177.9 (b)(1).

If there should be a change in the facts presented to the Customs Service for the preparation of this ruling letter, this may affect the position Customs has taken and could result in the modification or revocation of this ruling letter. It is recommended that a new ruling request be submitted to Customs should there be any change in the facts as submitted, particularly as they relate to the composition of the golf bag bodies and the origin of the components.

HOLDING

Classification

The Nike Elite golf bag and hood, when imported in shipments separate from the top cover and bottom base, are classified in subheading 6307.90.9889, Harmonized Tariff Schedule of the United States Annotated.

The Z-2 Bag Boy Stand golf bag and hood, when imported in shipments separate from the top cover and bottom base, are classified in subheading 6307.90.9889, Harmonized Tariff Schedule of the United States Annotated.

The General Column 1 Rate of Duty for subheading 6307.90.9889, HTSUSA, is seven (7) percent, ad valorem.

The legal reasoning and analysis employed in HQ 964538 (Nov. 19, 2001) is incorporated by reference. Headquarters Ruling Letter 964538 is attached to and made a part of this ruling letter.

If the Nike Elite golf bag and hood are imported with the top cover and bottom base as part of a single shipment for Customs purposes, they would be classified in subheading 4202.92.3031, Harmonized Tariff Schedule of the United States Annotated.

If the Z-2 Bag Boy Stand golf bag and hood are imported with the top cover and bottom base as part of a single shipment for Customs purposes, they would be classified in subheading 4202.92.3031, Harmonized Tariff Schedule of the United States Annotated.

The General Column 1 Rate of Duty of subheading 4202.92.3031, HTSUSA, is eighteen and one-tenths (18.1) percent, ad valorem.

The textile quota category for merchandise classified in subheading 4202.92.3031, HTSUSA, is category 670.

There are no applicable quota/visa requirements for products of World Trade Organization (WTO) member-countries. The textile category number above applies to merchandise produced in non-WTO member-countries.

The designated textile and apparel category may be subdivided into parts. If subdivided, the quota and visa requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent negotiations and changes, to obtain the most current information available, we suggest 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 updated weekly and is available for inspection at your local Customs Service office. The Status Report On Current Import Quotas (Restraint Levels) is also available on the Customs Electronic Bulletin Board (CEBB) which can be found on the U.S. Customs Web site at www.customs.gov.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Country of Origin

The country of origin of both the Nike Elite golf bag and hood and the Z-2 Bag Boy Stand golf bag and hood, subsequent to importation and assembly in the United States, is China.

Marking

The Nike Elite golf bag and the Z-2 Bag Boy Stand golf bag, subsequent to assembly in the United States, must be marked as products of China.

Sincerely,

John Durant, Director
Commercial Rulings Division

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