THE COUNTRY OF ORIGIN DETERMINATION OF A TOTE BAG

N087017 December 23, 2009 MAR-2 OT:RR:NC:N4:441 CATEGORY: COUNTRY OF ORIGIN Donna L. Shira Sharretts, Paley, Carter & Blauvelt, P.C. Seventy-five Broad Street New York, NY 10004 RE: THE COUNTRY OF ORIGIN DETERMINATION OF A TOTE BAG Dear Ms. Shira: This is in response to your letter dated December 4, 2009, on behalf of your client Polo Ralph Lauren, requesting a binding ruling on the country of origin marking requirements for a tote bag. FACTS: You submitted a finished sample of a tote bag and samples of the components cut in Italy. The tote bag measures approximately 15” (W) x 14” (H) x 1.5” (D). The exterior is composed of leather that is coated with a plastic sheeting material. The bag has one interior storage compartment that is textile lined, one interior pouch pocket, and one interior zippered pocket. It also has two permanently attached carrying handles, one detachable shoulder strap, and a top zippered opening. The interior of the bag has a permanently attached metal plate engraved with the words “RALPH LAUREN” and on a second line in slightly smaller font “MADE IN ITALY.” This plate is at the top of the interior of the bag approximately three inches below the zipper. The material comprising the tote bag consists of the following: 100% genuine leather originating in Italy, fabric for the interior of the bag originating in Italy, leather handles, leather strap, and hardware. You submitted the following production details: All interior and exterior components for the bag are cut in Italy to the precise shape needed to assemble the bag, utilizing the Italian facility’s patterns. The Italian facility then skives the leather to the appropriate thickness for assembly. The cut-to-shape exterior front and back leather panels, inside collar, interior lining panels, and interior lining pockets are sent to Tunisia, while the hardware, leather handles, and leather straps remain in Italy. In Tunisia, the exterior front and back leather panels are stitched at the sides but are not assembled together. The interior lining panels and interior pockets are also stitched in Tunisia. The leather panels and the interior lining are then returned to Italy, where the hardware, handles, and straps are attached to the bag and the lining is sewn to the exterior panels. Then, the Italian facility stitches the tops of the bags to complete the assembly. ISSUE: What is the country of origin of the subject merchandise? Does the proposed country of origin marking meet the requirements of the marking rule? LAW AND ANAYSIS: Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines "country of origin" as "the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the ‘country of origin’ within the meaning of the marking laws and regulations. “For country of origin marking purposes, a substantial transformation of an article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the article before the processing. However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). You suggest that the country of origin of the bag for marking purposes is Italy, inasmuch as the leather and fabric are substantially transformed in Italy by virtue of the cutting to the precise shapes needed to assemble the bag. We agree. CBP has previously held that cutting materials to defined shapes or patterns suitable for use in the assembly of a finished article, as opposed to mere cutting to length and/or width which does not render the article suitable for a particular use, constitutes a substantial transformation. See, for example, Headquarters Ruling Letter ("HQ") H005728, dated April 19, 2007, HQ 562156, dated July 5, 2001, and HQ 734539, dated June 8, 1992. Based on the information provided, we find that the component materials undergo a substantial transformation in Italy as a result of the cutting to shape to form the tote bag’s components for later assembly into the finished articles. Furthermore, we find that the operations performed in Tunisia do not constitute a further substantial transformation of the Italian pre-cut components. The Tunisia operations consist of merely stitching. CBP has long held that the mere assembly of parts will not necessarily constitute a substantial transformation. See C.S.D. 80-111, dated September 24, 1979, in which the U.S. Customs Service (now, CBP) found that the U.S. assembly of imported ceiling fan components on an assembly line did not constitute a substantial transformation. Ceiling fan motors underwent a 20-step assembly and the fan blades underwent a 5-step assembly. See also HQ 734539, dated June 8, 1992, regarding the country of origin of ladies’ clutches and men’s wallets. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. HOLDING: The country of origin of the tote bag is Italy. The proposed marking of imported tote bag, as described above, is conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the imported tote bag. 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 and 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 CBP, 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 Vikki Lazaro at (646) 733-3041. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division