Country of origin determination for tents; 19 CFR102.21(c)(2); tariff shift; 19 CFR 102.21(c) (4); mostimportant assembly or manufacturing process

HQ 958972 April 9, 1996 CLA-2 RR:TC:TE 958972 jb CATEGORY: Classification Mr. Davis Park Jinwoong, Inc. (America) 569 Charcot Avenue San Jose, California 95131 RE: Country of origin determination for tents; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(c) (4); most important assembly or manufacturing process Dear Mr. Park: This is in reply to your letter dated February 23, 1996, requesting a country of origin determination for certain tents which will be imported into the United States sometime on or after July 1, 1996. FACTS: The submitted merchandise consists of nylon taffeta tents which feature a nylon mesh over the doorways and window openings. The manufacturing process is as follows: Scenario 1 Korea- - nylon taffeta for the tents' outer shell is formed - nylon mesh fabric for doorways and windows is formed - accessories (zippers, tent poles, metal loops) and other components are formed Dominican Republic- - fabric is cut and sewn - accessory articles of Korean origin (zippers, tent poles, pegs and guy ropes) are added Scenario 2 Sri Lanka- - nylon taffeta for the tents' outer shell is formed Korea- - nylon mesh fabric for doorways and windows is formed - accessories (zippers, tent poles, metal loops) and other components are formed Dominican Republic or Sri Lanka- - fabric is cut and sewn - accessory articles of Korean origin (zippers, tent poles, pegs and guy ropes) are added ISSUE: What is the country of origin of the subject merchandise? LAW AND ANALYSIS: On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states that "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." In both scenario 1 and 2, as the subject merchandise 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 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 this section:" Paragraph (e) 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": 6301-6306 The country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process. The subject tents are classified in heading 6306, HTSUSA. In scenario 1 the fabric for both the tents' outer shell and the nylon mesh fabric for the doorways and windows is formed in Korea. As the "fabric-making" process occurs in a single country, i.e., Korea, country of origin is conferred by Korea in scenario 1. In scenario 2 a different set of circumstances presents itself because the fabric composing the tents is not formed in any one single country. The fabric for the tents' outer shell is formed in Sri Lanka and the nylon mesh is formed in Korea. As such, paragraph (c)(2) of section 102.21 is inapplicable to scenario 2. Paragraph (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 not knit, and heading 6306, HTSUSA is excepted from provision (ii), 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 scenario 2 the fabric making process of the tents' outer shell constitutes the most important manufacturing process. It is the outer shell which actually forms the merchandise and identifies the merchandise to its intended function, that is, to protect the user from the elements. In the opinion of this office, basing the country of origin determination on the fabric making process as opposed to the assembly process carries out the clear intent of Section 334 as expressed in Section 334 (b)(2) and Part 102.21(c)(3)(ii). Accordingly, in scenario 2, the fabric making process in Sri Lanka, where fabric for the tents' outer shell is formed, constitutes the most important manufacturing process. HOLDING: In scenario 1 the country of origin of the subject tents is Korea. In scenario 2 the country of origin of the subject tents is Sri Lanka. This ruling is issued pursuant to the provisions of Part 177, Customs Regulations (19 CFR Part 177). If the specific factual situation is not as described above, this ruling may not be valid. In such an event, it is recommended that a new ruling request be submitted. Sincerely, John Durant, Director Tariff Classification Appeals Division