Classification and Country of Origin of a Beverage Bag Usedfor Camping

HQ 953485 May 21, 1993 CLA-2 CO:R:C:T 953485 jlj CATEGORY: Classification TARIFF NO.: 6306.99.0000 Mr. Larry L. Lineham Alfred H. Marzolf, Inc. 157 Yesler Way, Suite 605 Seattle. Washington 98104 RE: Classification and Country of Origin of a Beverage Bag Used for Camping Dear Mr. Lineham: In your letter of February 5, 1993, you requested a tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) for a beverage bag to be imported by your client, Mountain Safety Research of Seattle, Washington. You submitted a sample along with your letter and later submitted two descriptive brochures covering the bag. You also ask whether it is sufficient to mark only the paperboard packaging if the beverage bag is imported with the paperboard packing in place. FACTS: The sample submitted is a beverage bag made of coated nylon fabric with a plastic cap and nylon webbing straps. The bag is approximately 17 inches by eight inches, with a webbing strap laced through grommet holes along the edges of the bag. The bag is used to carry water or beverages when camping. It is advertised as being able to screw onto a water filtration system also sold by your client. The fabric is made in the United States and then shipped to Malaysia. In Malaysia, the fabric is cut and the pieces are welded together. The partly-completed bags are shipped to Taiwan where the grommets are put in and the Taiwanese plastic cap is added. The webbing strap is made in Spain. It is added to the bag in Taiwan or in Seattle, depending upon the packaging. ISSUE: What is the correct HTSUSA classification of the beverage bag? What is the country of origin of the bag for marking purposes? LAW AND ANALYSIS: I. Classification Classification of merchandise under the HTSUSA is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be according to the terms of the headings and any relevant section or chapter notes. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN) are the official interpretation of the nomenclature at the international level. The EN for Heading 6306, HTSUSA, state, in relevant part, as follows: Camping goods. This group includes canvas buckets, water bags.... You submitted two descriptive brochures from your client which advertise the instant beverage bag. Both brochures show that the beverage bag is part of a line of camping goods used in camping situations. Both brochures advertised the goods within as "outdoor gear for citizens of the environment." Photographs of tents and camp sites figure predominantly in the brochures' illustrations. The beverage bag is specially designed to be attached to a water filtration system used to camp in areas where the water may not be potable otherwise. We find that the beverage bag is specifically advertised as and designed for use as a camping good, therefore it is classified under the provision for camping goods: other: of other textile materials, in subheading 6306.99.0000, HTSUSA. II. Country of Origin Country of origin determinations for textile products are subject to Section 12.130, Customs Regulations (19 CFR 12.130). Section 12.130 provides that a textile product which is processed in more than one country or territory shall be a product of that country or territory where it last underwent a substantial transformation. A textile product will be considered to have undergone a substantial transformation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce. Section 12.130(d), Customs Regulations, sets forth criteria for determining whether a substantial transformation of a textile product has taken place. This regulation states these criteria are not exhaustive; one or any combination of criteria may be determinative, and additional factors may be considered. Section 12.130 (d) (1), Customs Regulations, states that a new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in: (i) Commercial designation or identity, (ii Fundamental character, or (iii) Commercial use. Section 12.130 (d) (2), Customs Regulations, states that for determining whether merchandise has been subjected to substantial manufacturing or processing operations, the following will be considered: (i) The physical change in the material or article, (ii) The time involved in the manufacturing or processing, (iii) The level of complexity of the manufacturing or processing, (iv) The level or degree of skill, and (v) The value added to the article or material. Section 12.130 (e) (1), Customs Regulations, describes manufacturing or processing operations from which an article will usually be considered a product of the country in which those operations occurred. Section 12.130 (e) (1) (iv) provides the following: (iv) Cutting of fabric into parts and the assembly of those parts into the completed article.... While a little of the assembly process (i.e., addition of grommets, caps and webbing straps) is done after the cutting and assembly process in Malaysia, the bag is substantially complete after the Malaysian operations. The cutting of the United States-made fabric in Malaysia is also the only substantial transformation of the imported product. The imported bag is a product of Malaysia and must be marked accordingly. If the bags are imported with the paperboard packaging securely affixed to the bags, it would be permissible to mark the country of origin on the paperboard backing instead of on the bags themselves. Since all the information about the product appears on the paperboard backing, it is clear that it is designed to remain on the product until it is sold to the retail purchaser. The origin marking must be easy to read and easy to find. We note that a U.S. address appears on the backing. Accordingly, pursuant to 19 CFR 134.46, the country of origin preceded by words such as "Made in" must appear in close proximity and in comparable size letters as the U.S. address. This is true whether or not the bag is marked with the country of origin. Since the submitted sample does not have the paperboard backing affixed, we cannot determine whether the U.S. address appears in a conspicuous location. If it does not, an additional country of origin marking would have to appear in a conspicuous location on either the bag or the paperboard backing. HOLDING: The instant beverage bag is classified in subheading 6306.99.0000, HTSUSA, dutiable at the rate of 9 percent ad valorem. Malaysia is the country of origin for marking purposes. Sincerely, John Durant, Director