Classification and country of origin determination for woven sacks and woven fabric; 19 CFR 102.21(c)(2); tariff shift

N028508 May 27, 2008 CLA2-OT:RR:NC:N3:351 CATEGORY: Country of Origin Mr. A. Michael Shapiro Shapiro Packaging 25 Jefferson Avenue, SE Suite 300 Grand Rapids, MI 49503 RE: Classification and country of origin determination for woven sacks and woven fabric; 19 CFR 102.21(c)(2); tariff shift Dear Mr. Shapiro: This is in reply to your letter dated May 12, 2008, requesting country of origin determination for woven sacks and woven fabric that will be imported into the United States. FACTS: The subject merchandise consists of woven sacks and woven fabric. The manufacturing operations for the sacks are as follows: In the first scenario, polypropylene strips are woven into fabric in China. The strips meet the dimensional requirements of man-made fiber textile strips contained in Section XI, Legal Note 1(g) of the Harmonized Tariff Schedule of the United States (HTSUS). The fabric is shipped to Vietnam, Korea, Cambodia, Thailand, or India, where printed BOPP (biaxially oriented polypropylene, a plastic sheet), also made in China, is laminated to one surface of it. This laminated fabric, which is considered to be textile for tariff purposes, is formed into a tube and cut to length (the approximate size of the finished bag). The bottom is sewn shut, creating a pet food bag that will be sewn closed after filling. In the second scenario, the BOPP is from China, but the fabric is manufactured in the same country where the bag will be manufactured, Vietnam, Korea, Cambodia, Thailand, or India. In the third scenario, the fabric and printed BOPP are manufactured in China and shipped to the United States where the bags are made by the above process. ISSUE: What is the country of origin of the subject merchandise? CLASSIFICATION: You have not asked for a classification ruling. However, based on the samples submitted, the applicable heading for the bags will be 6305, HTSUS, which provides for sacks and bags of a kind used for the packing of goods. COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states, “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 none of the subject merchandise is wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable in all scenarios. Paragraph (c)(2) states, “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 materials 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) for heading 6305 in pertinent part states, 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: HTSUS Tariff shift and/or other requirements 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. In all three scenarios the fabric for the bags is formed by a fabric-making process in a single country: in scenarios one and three it is China; in two it is the same country where the bag is manufactured (Vietnam, Korea, Cambodia, Thailand, or India). As per the terms of the tariff shift requirement, country of origin in scenarios one and three is conferred in China; in scenario two, in Vietnam, Korea, Cambodia, Thailand, or India, as applicable (i.e., where the fabric comprising the good was formed by a fabric-making process). HOLDING: The country of origin of the bag in scenarios one and three is China. The country of origin of the bag in scenario two is the country where the fabric comprising the good was formed by a fabric-making process, whether Vietnam, Korea, Cambodia, Thailand, or India. 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 section states that a ruling letter, either directly, by reference, or by implication, is accurate or complete in every material respect. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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. A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Mitchel Bayer at 646-733-3102. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division