Country of Origin Determination for Rucksack, Backpack,“Tote” Bag, and “Club” Bag; 19 CFR 102.21(c)(4); MostImportant Assembly or Manufacturing Process

HQ 960829 May 6, 1999 CLA-2 RR:CR:TE 960829 GGD CATEGORY: Classification Michael J. Laska Mercury Luggage Manufacturing 4843 Victor Street Jacksonville, Florida 32207 RE: Country of Origin Determination for Rucksack, Backpack, “Tote” Bag, and “Club” Bag; 19 CFR 102.21(c)(4); Most Important Assembly or Manufacturing Process Dear Mr. Laska: This is in response to your letter dated June 9, 1997, requesting country of origin determinations for four travel bags which have been, and will continue to be, imported into the United States on an ongoing basis on or after July 1, 1996. Samples were submitted for examination with the request. FACTS: The four travel bags at issue are: a rucksack identified as style DH-4405, a backpack identified as style DH-6631, a “club” or sport bag identified as style 8321-ST, and a shoulder “tote” bag identified as style 8311-ST. The bags are essentially composed of polyester fabric, hardware, buckles, zippers, webbing, and embroidery, all of which are sourced in Taiwan. In addition to these materials, style DH-6631 contains a mesh fabric flat pocket, a fabric that is brushed to simulate suede on and near its bottom panel, and simulated suede as tabs for four zipper pulls. Both styles DH-6631 and DH-4405 have a layer of plastic foam material between the outer surface fabric layer and the inner lining material and both have an additional flat zippered pocket on their interior main compartment walls. Style DH-4405 features cord and grommets in its drawstring top closure, and has a large exterior flat zippered pocket (on the back panel) and two exterior gusseted zippered pockets (on the front panel), -2- each with an overlying flat zippered pocket on the outer surface. Style 8321-ST features a trim of plastic piping and five exterior flat zippered pockets - two on each end and one large pocket on one side. Style 8311-ST has one exterior flat pocket secured by an overlying flap, which itself contains a flat zippered pocket. Styles 8321-ST and 8311-ST each have a bottom stiffener that is composed of rectangular paperboard covered with sheeting of polyvinyl chloride (PVC) plastic. The additional materials are also sourced in Taiwan. “Multiple Declarations” prepared by the Taiwanese manufacturer state that the manufacturing operations are as follows: STYLE DH-4405 TAIWAN - material is sourced (100 percent polyester fabric, hardware, buckles, zippers, webbing, grommets, embroidery, and plastic foam padding); - fabric is cut into component pieces; - first component: front panel (including three layers of material, two gusseted zippered pockets, each with an overlying zippered flat pocket, cord (drawstring) top closure * with grommets, webbing, and buckle) is sewn together; - second component: back panel (including three layers of material, shoulder straps with webbing and buckle and one with an embroidered logo, front flap with embroidered “Duck Head” logo, two zippered flat pockets, webbing, and buckles) is sewn together; - third component: bottom panel with gussets (four fabric pieces and plastic foam layer) are sewn together. CHINA - front panel, back panel, and bottom panel with gussets are sewn together; - binding sewn over all seams; - loose threads are cut; - articles are packed into shipping cartons. * Please note that our examination of the finished sample indicates that the top closure is connected to the front panel, to the tops of the gussets, and to the back panel, by one continuous seam. This operation appears to be at odds with the manufacturer’s statement of operations upon which -3- our determination as to the country of origin is based. Please inform Customs of any inaccuracies that may exist in the description provided above. STYLE DH-6631 TAIWAN - material is sourced (polyester fabric, hardware, buckles, zippers, webbing, embroidery, plastic foam padding, mesh fabric, and simulated suede); - fabric is cut into component pieces; - first component: front panel (including three layers of material, embroidered “Duck Head” logo, zippered gusseted pocket with simulated suede trim, interior mesh flat pocket, and overlying zippered flat pocket) and simulated suede piece are sewn together; - second component: back panel (including three layers of material, interior zippered flat pocket, shoulder straps - one with embroidered “Duck Head” logo - webbing, and buckle) is sewn together; - third component: bottom panel with gussets (five fabric pieces, three simulated suede pieces, and plastic foam layer) and zipper are sewn together. CHINA - front panel, back panel, and bottom panel with gussets and zipper are sewn together; - binding sewn over all seams; - loose threads are cut; - articles are packed into shipping cartons. STYLE 8321-ST TAIWAN - material is sourced (100 percent polyester fabric, buckles, zippers, webbing, plastic piping, plastic footings, rivets, washers, and woven label); - fabric is cut into component pieces; - first component: body panel (including front panel with flat zippered pocket and zippered top opening, back panel, and bottom panel with rivets, plastic footings and washers) with webbed reinforcement, two carrying handles, and woven label are sewn together; -4- - second component: gussets - each with two zippered flat pockets, plastic piping, buckle, and webbing are sewn together and shoulder strap is attached. CHINA - body panel and gussets are sewn together; - loose threads are cut; - articles are packed into shipping cartons. STYLE 8311-ST TAIWAN - material is sourced (100 percent polyester fabric, hardware, buckles, zippers, webbing, piping, and woven label); - fabric is cut into component pieces; - first component: front panel - including webbing, buckle, piping, pockets with woven label and zipper - is sewn together; - second component: bottom panel with gussets and reinforced bottom is sewn together with top fabric pieces, zipper, and buckles with shoulder strap; - third component: back panel is cut and sewn to piping piece which forms frame around panel. CHINA - front panel, back panel, and bottom panel with gussets are sewn together; - loose threads are cut; - articles are packed into shipping cartons. ISSUE: What is the country of origin of the 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 or 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 -5- 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.” Since none of the merchandise is wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) is not applicable. 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:” 4202.92.15-4202.92.30.....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. The four styles of bags are classified in subheading 4202.92.30, HTSUSA. Since none of the merchandise is wholly assembled in a single country, however, the terms of the tariff shift are not met. 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 -6- 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. Since the merchandise is neither knit to shape, nor wholly assembled in a single country, section 102.21(c)(3) is not applicable. Section 102.21(c)(4) states that “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 Headquarters Ruling Letter (HQ) 959669, issued September 26, 1996, Customs determined the country of origin of a sports bag to be Taiwan, the country in which all materials were sourced, all fabric was cut into component pieces, and in which the most important assembly or manufacturing process occurred, specifically, the country where the panels for the main body of the bag (i.e., the top, bottom, front and back panels) were joined together to form an empty tube (there were no side panels), the handles and webbing straps were created, and the panels consisting of gusset pockets were created. In China, the main body of the bag and two gusset pocket panels were sewn together, loose threads were cut, and the complete article was packed in a polybag. The operations described in HQ 959669 above, and where they were carried out, bear a substantial similarity to how and where style 8321 was manufactured. Therefore, for style 8321, the most important assembly process also occurs in Taiwan, where the body panel (including the front panel with zippered flat pocket and zippered top opening, the bottom panel with rivets, washers, and footings, and the back panel, with webbing, straps, and woven label) is sewn together; and where the gussets - each with two zippered flat pockets, piping, buckle, and webbing - are sewn together. See also, HQ 959537, issued September 12, 1996. With respect to style 8311-ST, the main operation occurring in China is the connecting of the already complete front and back panels to the complete bottom panel. We thus find that for style 8311-ST, the most important assembly processes occur in Taiwan, where the front panel (with pockets and zipper) is sewn together, -7- the bottom panel (with gussets, reinforced bottom, top fabric pieces, and zipper) is sewn together, and the back panel is sewn together with the piping piece. In HQ 959842, issued October 29, 1996, we determined the country of origin of a backpack similar to styles DH 6631 and DH-4405, whose panels were fairly complex (i.e., additional pockets, suede pieces, and other features), to be the country in which the panels were assembled. At the outset, we again note that each of the two styles has panels composed of three layers of material. For style DH-6631, the most important assembly process occurs in Taiwan, where the front panel (including embroidery, the zippered gusseted pocket with simulated suede trim, and the inner mesh flat pocket) and simulated suede piece are sewn together; the back panel (with interior flat pocket, straps, webbing, and buckle) is sewn together; and the bottom panel with gussets (five fabric pieces and three simulated suede pieces) and zipper are sewn together. Although style DH-4405 contains no simulated suede pieces, the most important assembly process also occurs in Taiwan, where each of the three panels, particularly the front panel (including the drawstring top closure with grommets and the two zippered gusseted pockets with overlying zippered flat pockets) and back panel (including one interior, and one large exterior, zippered flat pocket) are sewn together. See also HQ 960804, issued October 1, 1998. HOLDING: The country of origin of the travel bags identified by style numbers 8311-ST, 8321-ST, DH-4405, and DH-6631, is Taiwan. 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 19 CFR 177.9(b)(1), which states that each ruling letter is issued on the assumption that all of the information furnished and incorporated in the 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. A change in the facts previously furnished may affect the determination of country of origin. Thus, if there is -8- any change in the facts provided to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2. Sincerely, John Durant, Director Commercial Rulings Division