NY H86911 - Marking of Footwear - United States International Trade Commision Rulings

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NY H86911

January 29, 2002

MAR-2-64:RR:NC:347:H86911

CATEGORY: MARKING

Mr. Richard J. Kaplan
Lamb & Lerch
233 Broadway
New York, NY 10279

RE: Marking of Footwear

Dear Mr. Kaplan:

In your letter dated January 3, 2002, you requested a binding ruling concerning the country of origin marking of certain footwear on behalf of Genfoot Inc.

You state that footwear which will be imported from China into the United States consists of a rubber or plastics boot bottom, which completely covers the foot, and a sleeve or shaft having a felt or other material liner which is inserted into the boot bottom. The shaft or sleeve measures from approximately 2 or 3 inches to 9 or 10 inches in length. The rubber or plastic boot bottom, which completely covers the foot, is produced in Canada and is of Canadian origin. You are presenting three alternative scenarios which may be applicable and are to be addressed in this ruling:

Scenario A. All Components of Canadian Origin.

Under this scenario, the shaft or sleeve, the lining, and the boot bottom will all be of Canadian origin and will be shipped to China for assembly into a finished boot.

Scenario B. Boot Bottom and Lining of Canadian Origin.

In this scenario, the rubber or plastic boot bottom and the liner will also be of Canadian origin, but the nylon shaft or sleeve will be a product of China. The Canadian origin components will be shipped from Canada to China for assembly with the China origin shaft or sleeve into a finished boot.

Scenario C. Boot Bottom of Canadian Origin.

Under this scenario, the rubber or plastic boot bottom will be of Canadian origin, but both the nylon shaft or sleeve and the lining will be products of China. The boot bottom will be exported from Canada to China where it will be assembled with China origin shaft or sleeve and the China origin lining.

In each of the foregoing scenarios, the assembly of the finished boot will take place in China by assembling the lining and the rubber or plastic boot bottom and by assembling the shaft or sleeve with the lining and boot bottom. The finished boot will be imported into the United States from China. You believe that under all three scenarios, the rubber boot bottom imparts the essential character for the finished footwear, the country of origin is Canada and the footwear upon importation into the United States should be marked “Made in Canada.”

The rubber bottoms which consist of a molded rubber/plastics outer sole and an upper portion covering the top and sides of the foot but not covering the ankle, have the essential character of footwear. Specifically, they look and function very much like rubber galoshes and although not complete, provide a total covering for the foot. The rubber bottoms are classified under subheading 6401.99, Harmonized Tariff Schedule of the United States (HTS), as waterproof footwear with outer soles and uppers of rubber or plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes, other. The nylon shaft is classified under subheading 6406.10 (HTS), which provides for parts of footwear, uppers and parts thereof. The liner is also classified under this provision. The completed footwear consisting of the finished boot with the lining and shaft attached will be properly classified under heading 6402 or 6404 (HTS), depending on the component material comprising the greatest external surface area of the upper.

Section 134.1(b), Customs Regulations [19 CFR 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 102.11(a), [19 CFR 102.11(a) states that the following rules shall apply for purposes of determining the country of origin under NAFTA of imported goods other than textile and apparel products covered by 102.21:

The country of origin of a good is the country in which:

The good is wholly obtained or produced;

The good is produced exclusively from domestic materials; or

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

Except for a good that is specifically described in the Harmonized System as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of this section:

The country of origin of the good is the country or countries of origin of the single material that imparts the essential character of the good.

Since the assembled good to be imported is to be produced from Chinese and Canadian origin materials, it is neither wholly obtained nor produced in either country. Therefore, we must determine under 19 CFR 102.11(a)(3) whether each of the foreign components undergo the required change in classification as a result of operations performed in China. As noted, the assembled footwear is properly classified under heading 6402 or 6404. The specific tariff rule set out in section 102.20(k), Section XII, Chapters 64 through 67, 6401-6405 of the regulations, which covers the footwear with either textile or rubber uppers, provides:

6401-6405.A change to heading 6401 through 6405 from any other heading outside that group, except from formed uppers.

The rubber boot bottoms do not undergo a tariff shift, we must therefore proceed to the next rule under the hierarchy, 19 CFR 102.11(b), in order to determine the country of origin of the assembled good. Under this rule, as noted above, where the country of origin cannot be determined under paragraph (a), the country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good. For purposes of identifying the material that imparts the essential character to a good, Section 102.18(b)(1) provides that the only materials that shall be taken into consideration are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed under the section 102.20 specific rule or other requirements applicable to the good. If only one material meets this criteria, then that material will represent the single material that imparts the essential character to the good.

Since the rubber boot bottom is the single material classified in a tariff provision from which a change in tariff classification is not allowed under the applicable 102.20 rule, this component imparts the essential character to the good. As it is a product of Canada, the country of origin of the assembled boot imported into the United States is Canada

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. The finished footwear shall be marked with the notation “Made in Canada.”

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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, Richard Foley at 646-733-3042.

Sincerely,

Robert B. Swierupski
Director,

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