Country of origin determination for tents; 19 CFR102.21(c)(2); tariff shift; De Minimis

HQ 959386 July 18, 1996 CLA-2 RR:TC:TE 959386 jb CATEGORY: Classification Debbie Bender Marmot Mountain Ltd. 2321 Circadian Way Santa Rosa, CA 95407 RE: Country of origin determination for tents; 19 CFR 102.21(c)(2); tariff shift; De Minimis Dear Ms. Bender: This is in reply to your letter dated June 18, 1996, requesting a country of origin determination for certain tents. FACTS: The submitted merchandise consists of a variety of styles of tents. The manufacturing processes are as follows: JAPAN - fabric for the outer shell is formed. TAIWAN - fabric for the door flap is formed. * You state that the total weight of the door flap is less than seven percent of the total weight of the tent. CHINA - production. 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 Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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." 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. General Rule (c) of Part 102.21 states that "Subject to paragraph (d) of this section, the country of origin of a textile or apparel product shall be determined by sequential application of paragraphs (c)(1) through (5) of this section and, in each case where appropriate to the specific context, by application of the additional requiremets or conditions of 102.12 through 102.19 of this part." Section 102.13, which sets out the De Minimis rule states, in relevant part: (c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in 102.21 or satisfy the other applicable requirements of that section when incorporated into a textile or apparel product covered by that section shall be disregarded in determining the country of origin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good. The subject tents are classified in heading 6306, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). As you have stated that the weight of the door flap is not more than 7 percent of the total weight of the finished tent, the door flap is disregarded when determining country of origin. Accordingly, the merchandise complies with the the requisite tariff shift for heading 6306, HTSUSA. The country of origin of the subject merchandise is thus, the single country where the fabric comprising the good was formed by a fabric-making process, that is, Japan and must be labelled accordingly. Problems created by Chinese regulations concerning the country of origin labels on goods exported from China must be resolved by the exporter of the goods. HOLDING: The country of origin of the subject tents is Japan. Accordingly, these tents will be treated as products of Japan and will require a Japan visa. 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 sections states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. 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. Sincerely, John Durant, Director Tariff Classification Appeals Division