Country of origin determination for ornamental flags; 19 CFR102.21(c)(2); tariff shift

HQ 959769 October 11, 1996 CLA-2 RR:TC:TE 959769 jb CATEGORY: Classification Carlos A. Ospina All World Inc. 1212 NW. 72nd Ave. Miami, Florida 33126 RE: Country of origin determination for ornamental flags; 19 CFR 102.21(c)(2); tariff shift Dear Mr. Ospina: This is in reply to your letter dated September 11, 1996, on behalf of your client, IPI (U.S.A.) Inc., requesting a country of origin determination for ornamental flags which will be imported into the United States. FACTS: The subject merchandise consists of three types of ornamental flags made of nylon fabric. The first flag is referred to as an "electric flag" which consists of two flags sewn together and includes brass grommets, PVC inserts and electric light sets in the packaging. The second flag is referred to as a "basic decorative flag" which features applique, and measures 28 inches by 40 inches. The last flag is referred to as a "mini flag", a smaller version of the basic decorative flag, and measures 12 inches by 18 inches. This last flag also comes with a dowel and suction cup for hanging. We have been advised by the Metals and Machinery Branch, Office of Regulations and Rulings, that the "electric flag" is improperly classified in heading 6307, Harmonized Tariff Schedule of the United States (HTSUS). As the proper classification of the electric flag is at issue, this ruling letter will not address the electric flag. You will receive a separate letter from the Metals and Machinery Branch as pertains to the proper classification of this merchandise. At that time, should you still require an origin determination for the electric flag, you should submit your request to the Special Classification and Marking Branch, Office of Regulations and Rulings. The manufacturing operations for the flags are as follows: TAIWAN - nylon fabric is formed. CHINA - materials such as dowel and plastic suction cup are sourced; - cutting; - sewing into completed product. 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 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": 6307.90 The country of origin of a good classifiable under heading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process. The subject ornamental flags are classified in subheading 6307.90, HTSUS. The fabric for the subject merchandise is formed in Taiwan. As the "fabric-making" process occurs in a single country, that is, Taiwan, country of origin is conferred in Taiwan. The marking of the subject merchandise as "Made in China" is not consistent with the origin rules set forth in section 102.21, Customs Regulations, and with the country of origin marking requirements in Part 134, Customs Regulations. The proper marking for the subject merchandise is "Made in Taiwan" or "Product of Taiwan". HOLDING: The country of origin of the subject ornamental flags is Taiwan and must be marked accordingly. 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