Country of origin determination for cosmetic bags; 19 CFRSection 102.21(c)(5); HRL 958626

HQ 959478 August 20, 1996 CLA-2 RR:TC:TE 959478 NLP CATEGORY: Classification Leonard L. Rosenberg, Esq. Sandler, Travis & Rosenberg, P.A. The Waterford 5200 Blue Lagoon Drive Miami, FLA 33126-2022 RE: Country of origin determination for cosmetic bags; 19 CFR Section 102.21(c)(5); HRL 958626 Dear Mr. Rosenberg: This is in reply to your letter, dated July 12, 1996, on behalf of your client, Jaclyn, Inc., in which you requested a country of origin determination for three styles of bags which will be imported into the United States. This office was provided with samples of the finished bags. FACTS: The merchandise and the production processes are described as follows: Style No. L-2682 This style is a small cosmetic bag measuring approximately 8-1/2 inches by 6-1/4 inches and it is 2-1/2 inches wide at the bottom. The bag is primarily made from a single panel of woven polyethylene lined with PVC. It has a zippered closure that is on the front panel about « inch from the top of the bag. A grosgrain loop is inserted into each side seam near the zipper opening and a country of origin label is inserted into an inner side seam. The production processes are as follows: Country A Cut material into body panel Fold and sew body panel to lining and zipper Sew grosgrain loops Add zipper and pull and turn bag Country B Sew country of origin label Join main body parts together (close sides by sewing) Stitch binding over seams for clean finish Turn bag, trim loose threads, finish and pack into polybags/export cartons Style No. L-2746 This style is also a small cosmetic bag and is made from a single panel of woven polyethylene lined with PVC. It measures approximately 8-1/2 inches across by 4-1/2 inches in height and it expands to two inches in width at the bottom. The bag has a top zippered opening and a grosgrain loop is inserted into an outer seam. A country of origin label is sewn into an inner seam. The production processes are as follows: Country A Cut material into body panel Fold and sew body panel to lining and zipper Sew grosgrain loop Add zipper and pull and turn bag Country B Sew country of origin label Join main body parts together (close sides by sewing) Stitch binding over seams for clean finish Turn bag, trim loose threads, finish and pack into polybags/export cartons Style No. L-2645 This style is a small flat rectangular-shaped cosmetic bag. The outer surface of the bag is made of woven polyethylene and is lined with PVC. The bag is approximately 8 inches across and 6 inches in length. It has a top opening which is secured by a zipper with a pull tab and the interior seams are covered with PVC binding. The production processes are as follows: Country A Cut material into two body panels Sew body panels to lining and zipper Add zipper and pull tab and turn bag inside Country B Sew country of origin label Close sides and bottom by sewing Stitch binding over seams for clean finish Turn bag to right side Cut loose thread, finish and pack into polybags/export cartons ISSUE: What is the country of origin of the subject cosmetic bags? LAW AND ANALYSIS: On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) 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 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:" 4202.92.60-4202.92.90 A change to subheading 4202.92.60 through 4202.92.90 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. The cosmetic bags are classifiable in subheading 4202.92, HTSUS. As the subject cosmetic bags are assembled in both Country A and Country B, they are not wholly assembled in a single country. Accordingly, Section 102.21(c)(2) is inapplicable in determining the country of origin of these bags. 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 neither knit 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." We note that in Headquarters Ruling Letter (HRL) 958626, dated May 2, 1996, also issued to you, on behalf of Jaclyn, Inc., Customs dealt, inter alia, with the country of origin of a cosmetic bag, style no. L-1665-16, that was produced in a very similar manner to the bags at issue herein. For example, in HRL 958626, in the first scenario presented, the production processes were as follows: in Country A, the material was cut into a body panel, the panel was folded and sewn to the lining and zipper, the zipper tab was added and the bag was turned. In Country B, the country of origin label was sewn on, the sides were closed by sewing, stitch binding over the seams was performed, the bag was turned, loose threads were trimmed and the bags were finished and packed. In the second scenario presented, the only difference was that in the first country (Country B ) the bag was not turned and it was turned twice in the second country (Country A). Customs stated the following in determining the country of origin of the bag: In the case of Style L-1665-16, the assembly operations occurring in countries A and B are equally important. Because this particular style is made primarily of one body panel, both the process of folding the body panel and connecting it to the zipper, and the process of closing the side seams are equally important. Accordingly, Customs determined that Section 102.21 (c)(4) was not applicable and we based our country of origin determination on Section 102.21 (c)(5), which states the following: "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred." Therefore, Customs held that the country of origin for the bag was based on the last country in which an important manufacturing operation occurred, and that was, respectively, Country B and Country A. In the case of the subject merchandise, the production processes and assembly operations occurring in Country A and B are almost identical to the ones performed in the production scenarios presented for style L-1665-16 in HRL 958626. Therefore, the analysis used in that case is applicable in the instant case. As the assembly operations occurring in Countries A and B are equally important, the country of origin for these bags cannot be determined by application of Section 102.21 (c)(4). Thus, Section 102.21 (c)(5) directs us to the last country in which an important manufacturing operation occurred, that is, in Country B. Accordingly, for all three styles of bags, the country of origin is Country B. HOLDING: The country of origin for Style Nos. L-2682, L-2746 and L-2645 is Country B. 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 C.F.R. 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. Should it be subsequently determined that the information furnished is not complete and does not comply with 19 C.F.R. 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 C.F.R. 177.2. Sincerely, John Durant, Director Tariff Classification Appeals Division