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NY L80517




November 23, 2004

MAR:RR:NC: N3:351 L80517

CATEGORY: MARKING

Marc D. Torrence
Import Operations Manager
V. Alexander & Co., Inc.
P.O. Box 291929
Nashville, TN 37229-1929

RE: Marking for imported golf bag bodies / golf bags assembled in the USA; Sleeves; Country of Origin Determination; 19 USC 102.21(c)(4); 19 CFR 134.11, 19 CFR 134.46; HQ 962313; HQ 085391; HQ 734466

Dear Mr. Torrence:

This is in reply to your letter dated October 20, 2004, requesting a marking determination for golf bag bodies (which you refer to as “sleeves”) that are imported into the United States from China. The request is on behalf of Datrek Professional Bags of Springfield, Tennessee.

FACTS:

The subject merchandise consists of a golf bag body, that is, the part of the golf bag that actually holds the golf clubs; it has numerous pockets for balls, tees, and other golfing accessories. You have submitted a photograph of a golf bag body. In addition, we have consulted Datrek’s website. The submitted photograph is representative of the Datrek product line of golf bags.

You indicate that the textile fabric will be made in China, where all of the fabric components will be manufactured. The golf bag body is made up of man-made textile materials. It is assembled in China of Chinese-origin components. Each golf bag body consists of one center compartment and from seven to fourteen storage pockets of various sizes and configurations. Some styles will also incorporate an insulated food or beverage compartment and one or more pouches for putter tubes. The photograph depicts a sewn-in label that reads “Made in China” sewn to the top collar area.

In lieu of the current label, you request approval to substitute a two-sided label that reads “DATREK.COM / U.S. Patent no.6,510,944” on the front side and “Assembled in USA with foreign components” on the backside.

The golf bag body is imported into the United States where the assembly is completed by joining the remaining components to form the particular style golf bag. The final assembly process consists of inserting, sewing, and riveting the various parts together.

ISSUES:

May the imported golf bag part (golf bag body) be marked “assembled in USA with foreign components”?

May the golf bag body be marked with a fabric label that reads on the front side "U.S. Pat no. 6,510,944”?

In order to rule on this request, we must first determine the country of origin of the completed golf bag.

CLASSIFICATION:

Customs has previously ruled that the particular part in question, the golf bag body, if made of textile fabric, is classifiable in subheading 6307.90.9889, Harmonized Tariff Schedule of the United States (HTS), which provides for other made up textile articles, other. The rate of duty will be seven percent ad valorem. However, your ruling request does not concern the classification of the golf bag body but rather the country of origin marking.

The applicable subheading for the completed golf bag, as assembled in the United States, is 4202.92.3031, HTS, which provides for travel, sport, and similar bags, with outer surface of textile materials, of man-made fibers.

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states, "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, in this case, the completed golf bag, 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

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.

Accordingly, as the golf bag body did not undergo an applicable change in tariff classification and the assembled golf bag was not assembled in a single country, territory or insular possession (i.e., some assembly done in China, some in the United States), Section 102.21(c)(2) is inapplicable.

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 to shape, nor wholly assembled in a single country, 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."

In the case of the subject merchandise, the assembly of the golf bag body constitutes the most important assembly process. Accordingly, the country of origin of the golf bag is China.

MARKING:

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.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials. In such circumstances, the imported article is excepted from marking and only the outermost container is required to be marked. See, 19 CFR 134.35.

The ultimate purchaser of the assembled golf bag in the United States is the retail customer who purchases the golf bag subsequent to its assembly in the United States of imported components.

Determination of the ultimate purchaser of the golf bag body is more problematic. 19 CFR 134.41(d)(1) indicates that if an imported component is used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. Since the golf bag body is wholly assembled in China of Chinese components and then assembled into the completed golf bag, there is no manufacturing process performed in the United States. The golf bag body is not further manufactured in the United States and therefore it is not substantially transformed. The golf bag body consists of the most important part of the assembled golf bag. It is the golf bag body and it retains its identity as the golf bag body. There is no manufacturing process that causes a substantial transformation. Therefore, 19 CFR 134.1(d)(1) does not apply and the imported golf bag bodies must be marked to indicate the country of origin, China.

The completed golf bag must be marked “Made in China” as shown in the illustration presented with the ruling request.

In addition, the use of a sewn-in label that reads "U.S. Patent no. 6,510,944” on the visible side of a sewn-in label would trigger application of 19 CFR 134.46. If the country of origin label includes reference to the U.S. patent number, the country of origin must be shown on the same visible side in close proximity and comparable print.

We note that some golf bags on the website are prominently marked “USA,” or contain American flags, or both. Please note that Section 134.46, Customs Regulations (19 CFR 134.46), deals with cases in which the words "United States," or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced, appears on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin. In such a case, there shall appear, legibly and permanently, in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," Product of," or other words of similar meaning.

In order to satisfy the close proximity requirement, the country of origin marking must generally appear on the same side(s) or surface(s) in which the name or locality other than the actual country of origin appears.

HOLDING:

The country of origin of the completed golf bag is China. Thus, the golf bag body may not be marked “assembled in USA with foreign components” but rather the imported golf bag bodies must be marked to indicate the country of origin, China. The completed golf bag must be marked “Made in China.”

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 646-733-3102.

Sincerely,

Robert B. Swierupski
Director,

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