Classification and country of origin determination for a tote bag from China; 19 CFR 102.21(c)(2); tariff shift

NY J81567 March 7, 2003 CLA2-RR:NC:3:341 J81567 CATEGORY: Classification Catherine M. Carney Corporate Import Manager C/o The Hipage Company, Inc. The Hipage Building 227 E. Plum Street Norfolk, Virginia 23510 RE: Classification and country of origin determination for a tote bag from China; 19 CFR 102.21(c)(2); tariff shift Dear Ms. Carney: This is in reply to your letter dated February 28th, 2003, requesting a classification and country of origin determination for a tote bag which will be imported into the United States. The request is on behalf of Transocean Import Co., Inc. FACTS: The sample submitted is a tote bag constructed of 100 percent acrylic non-woven fabric. It is identified as style BA-007/BT. The bag measures approximately 24”W x 17 ½”H x 7 ½”D. Featuring a zippered enclosure across its top, the interior of the item is lined with corduroy fabric. Zippered, free-hanging pockets are attached to both interior sides. The bag has two self material handles. The manufacturing operations for the tote bag are as follows: The 100 percent acrylic fabric is made in USA and is shipped to China. In China, the fabric is cut to size and shape. The cut piece goods are sewn together to form the bag body that is then combined with all other components such as the handles zippers, lining and findings. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the tote bag will be 4202.92.3031, Harmonized Tariff Schedule of the United States (HTS), which provides for travel, sports, and similar bags, with outer surface of textile materials, other, of man-made fibers, other. The rate of duty will be 17.8 percent ad valorem. COUNTRY OF ORIGIN - 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 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) in pertinent part 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": HTSUS Tariff shift and/or other requirements 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. As the tote bag is wholly assembled in China, as per the terms of the tariff shift requirement, country of origin is conferred in China. HOLDING: The country of origin of the tote bag, style BA-007/BT is China. 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 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 Kevin Gorman at 646-733-3041. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division