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HQ 959178




June 24, 1996
CLA-2 RR:TC:TE 959178 SK

CATEGORY: CLASSIFICATION

TARIFF NO.: 4202.92.3030; 6307.90.9989

Laura L. Hager
Hellmann Transport Services, Inc.
2551 Santa Fe Avenue
Redondo Beach, CA 90278

RE: Country of origin determination; Section 102.21, Customs Regulations; classification of finished and unfinished, partially assembled golf bag; HRL 958915 (2/27/96); HRL 957006 (6/27/95).

Dear Ms. Hager:

This is in response to your letter of April 25, 1996, on behalf of Belding Sports of Oxnard, California, in which you request a country of origin determination for both a finished and unfinished, partially assembled golf bag body. No sample was submitted to this office for examination.

FACTS:

Two manufacturing scenarios were presented to this office for consideration. In Scenario 1, polypropylene fabric will be manufactured in the United States. The fabric is shipped to China where it is cut, sewn and assembled to form a golf bag body. The China assembly operations include attaching all the hardware and zippers, except for the bottom, top cuff and internal tube support. The unfinished, partially assembled golf bag body is then exported to the United States where it is assembled to completion by means of sewing the moulded plastic bottom into place, inserting and sewing into place the cylindrical plastic internal tube support and sewing on the top four inches of the golf bag (the "cuff").

Scenario 2 is identical to Scenario 1 except that the golf bag body is assembled to completion in China before export to the United States.

ISSUES:

What is the proper classification for the subject merchandise under the two manufacturing scenarios presented to this office?

What is the country of origin for the subject merchandise?

LAW AND ANALYSIS:

In order to determine the country of origin for this merchandise, it is necessary to ascertain the proper classification of the golf bag body, both in its finished, fully assembled condition and in its unfinished, partially assembled condition.

CLASSIFICATION

Classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes, taken in order. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's, taken in order.

Heading 4202, HTSUSA, provides, in part, for travel, sports and similar bags.
The Explanatory Note to heading 4202, HTSUSA, at page 613, indicates that golf bags are regarded as sports bags for purposes of classification within this heading.

GRI 2(a) states:

"Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled."

Customs' initial determination, therefore, is whether a partially assembled golf bag, in its condition as imported, is classifiable as a complete or finished golf bag. We will address each scenario, described supra, separately.

In Scenario 1, the golf bag body is imported in an unfinished, partially assembled state. The golf bag body does not have a bottom, top cuff or internal support tube. This office has previously held that golf bag bodies, imported without their remaining components, do not possess the essential character of the finished article. See Headquarters Ruling Letters (HRL's) 085391, dated December 20, 1989, 957006, dated June 27, 1995, and 958915, dated February 27, 1996. The golf bag body in Scenario 1, imported into the United States without a bottom, top cuff and internal tube support, will therefore be classifiable according to its constituent materials. As the instant golf body bag is described in a manner substantially similar to those classified in the above-cited rulings, we conclude it is classifiable under subheading 6307.90.9989, HTSUSA, which is the residual provision for articles of textiles. We further note that the remaining articles do not, by themselves, possess the essential character of a finished golf bag. Accordingly, the bottom component, top cuff and internal tube support are classifiable according to their constituent materials in the appropriate headings.

In your letter to this office you do not indicate whether the various unassembled golf bag body components will arrive in the United States in separate shipments, or whether the articles are merely packaged or boxed separately. If the former importation scenario applies, the golf bag body and top cuff will be classifiable separately in subheading 6307.90.9989, HTSUSA, and the plastic bottom and plastic internal tube support will be classifiable under subheading 3926.90.9890, HTSUSA, for the reasons set forth supra. If, however, these articles arrive in the United States in the same shipment, but are merely packaged separately, and these components comprise the finished golf bag in its entirety, the unassembled components will be collectively classified as a complete or finished sports bag, of man-made fibers, under subheading 4202.92.3030, HTSUSA, as per GRI 2(a).

In Scenario 2 the golf bag body is imported into the United States in a fully assembled condition and is classifiable under subheading 4202.92.3030, HTSUSA.

COUNTRY OF ORIGIN

Pursuant to the Uruguay Round Agreements Act, new rules of origin will be effective for textile or apparel products entered, or withdrawn from warehouse for
consumption, on or after July 1, 1996. These rules were published in the Federal
Register, 60 Fed. Reg. 46188 (September 5, 1995). Section 102.21, Customs
Regulations (19 CFR Section 102.21), sets forth the general rules which determine country of origin. The country of origin of a textile or apparel product will be determined by a hierarchy of rules set forth in paragraphs (c)(1) through (c)(5) of Section 102.21.

Section 102.21(c)(1) sets forth the general rule for determining the country of origin of a textile or apparel product in which the good is wholly obtained or produced in a single country, territory, or insular possession.

Section 102.21(c)(2) provides for instances where the country of origin of a textile or apparel product cannot be determined under Section 102.21(c)(1). Section 102.21 (c)(2) provides:

"[W]here 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."

As set forth supra, in Scenario 1 the unfinished, partially assembled golf bag body, if imported in a separate shipment from its remaining unassembled components (i.e., the bag bottom, top cuff and internal tube support), is classifiable under subheading 6307.90, HTSUSA. If the golf bag body arrives in the United States in the same shipment as the remainder of its unassembled components, but is merely packaged separately, this office deems the golf bag body an unassembled golf bag and, pursuant to GRI 2(a), classifiable under subheading 4202.92.3030, HTSUSA, as a complete or finished sports bag of man-made fibers.

In Scenario 2 the golf bag is imported into the United States in a fully assembled condition and is classifiable under subheading 4202.92.3030, HTSUSA.

Section 102.21(c)(1) does not provide the relevant analysis in either scenario because the subject merchandise is not wholly obtained or produced in a single country, territory, or insular possession. Accordingly, we turn to Section 102.21(c)(2) which directs us to paragraph (e) of this section. The two pertinent
parts of paragraph (e) state that origin is conferred in the following situations:

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.

6307.90 The country of origin of a good classifiable under subheading 6307.90 is the country, territory or insular possession in which the fabric comprising the good was formed by a fabric-making process.

In Scenario 1, if the golf bag body is classifiable under subheading 6307.90, HTSUSA, the country of origin is the United States pursuant to Section 102.21(c)(2) as this is where the fabric is woven. Be advised, however, that there is an exception for products from the United States that are sent abroad for processing. Section 12.130(c), Customs Regulations, provides that any product of the United States which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article. Section 12.130, which remains in effect, was originally intended to be used to determine the country of origin of textiles and textile products for quota/visa requirements. In Treasury Decision ("T.D.") 90-17, issued February 23, 1990, Customs announced a change in practice and position. This change resulted in Customs using Section 12.130 for quota, duty and marking purposes when making country of origin determinations for textile goods. Therefore, in this particular manufacturing and importing scenario, in accordance with T.D. 90-17 and Section 12.130(c), the country of origin of the unfinished, partially assembled golf bag body is China for quota, duty and marking purposes, as it is in China that the U.S.-origin fabric is advanced in value by means of cutting, sewing and partial assembly.

In Scenario 2, the golf bag is classifiable in subheading 4202.92.3030, HTSUSA, and it is wholly assembled in China. Therefore, pursuant to Section 102.21(c)(2), China is the country of origin of the golf bag in this instance.

We distinguish Scenario 2 from Scenario 1, however, where the golf bag body may also be classifiable under subheading 4202.92.3030, HTSUSA, if it arrives in the United States in the same shipment as the remainder of its unassembled components, but is merely packaged separately, and this office deems the golf bag body and its
remaining components an unassembled golf bag. In this situation, although the golf bag body is classifiable under subheading 4202.92.3030, HTSUSA, Section 102.21(c)(2) does not provide the appropriate analysis because assembly takes place in more than a single country (i.e., in China and the United States). Accordingly, we continue in our hierarchical application of Section 102.21(c).

Section 102.21(c)(3) governs instances where country of origin of a textile or apparel product cannot be determined pursuant to paragraphs

(i) "[I]f 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 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."

Section 102.21(c)(3) is inapplicable because the subject merchandise is neither knit to shape nor wholly assembled in a single country.

Section 102.21(c)(4) provides:

"[W]here 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 Scenario 1, if the golf bag body is classifiable under subheading 4202.92.3030, HTSUSA, the relevant analysis is provided by Section 102.21(c)(4). The determinative issue is where the most important assembly operation transpires. In Scenario 1, the most important assembly operation transpires in China as it is in this country that the majority of the golf bag body is assembled to completion.

HOLDING:

If the golf bag body and its unassembled components are imported in separate shipments, the golf bag body and top cuff will be classifiable separately in subheading 6307.90.9989, HTSUSA, and the plastic bottom and plastic internal tube support will be classifiable under subheading 3926.90.9890, HTSUSA. Subheading 6307.90.9989, HTSUSA, provides for other made up articles, including dress patterns: other: other: other... other: other... . The applicable rate of duty is 7 percent ad valorem. Subheading 3926.90.9890, HTSUSA, provides for other articles of plastics and articles of other materials of headings 3901 to 3914: other: other... other... . The applicable rate of duty is 5.3 percent ad valorem.

If the golf bag body and its remaining unassembled components are imported together in the same shipment, or if the golf bag is imported in its wholly assembled condition, the merchandise is classifiable under subheading 4202.92.3030, HTSUSA, which provides for, in pertinent part, other sports bag, of man-made fibers, dutiable at a rate of 19.5 percent ad valorem. The attendant textile quota category is 670.

In Scenario 1, if the golf bag body is classifiable under subheading 4202.92.3030, HTSUSA, the country of origin is China pursuant to Section 102.21(c)(4).

In Scenario 1, if the golf bag body is classifiable under subheading 6307.90, HTSUSA, the country of origin is the United States pursuant to Section 102.21(c)(2), however, in accordance with T.D. 90-17 and Section 12.130(c), the country of origin of the unfinished, partially assembled golf bag body is China for quota, duty and marking purposes.

In Scenario 2, the golf bag is classifiable under subheading 4202.92.3030, HTSUSA, and the country of origin is China pursuant to Section 102.21(c)(2).

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 is issued on the assumption that all of the information furnished 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. 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

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