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NY D81322




September 16, 1998

CLA-2-RR:NC:3:341 D81322

CATEGORY: CLASSIFICATION

Ms Barbara Y. Wierbicki
Serko & simon LLP
One World Trade Center Suite 3371
New York, N.Y. 10048

RE: Classification and country of origin determination for backpacks; 19 CFR 102.21(c)(4)

Dear Ms. Wierbicki:

This is in reply to your letters dated June 23 and August 7, 1998 requesting a classification and country of origin determination for a nylon backpack imported into the United States. The request is on behalf of Accessory Network Group.

FACTS:

The subject merchandise consists of an unidentified style of a backpack manufactured of man-made textile materials and suede leather. The backpack is approximately 15" in height, 11" in width and 5.5" deep. The front, back, and two sides are of polyester fabric and the bottom panel is of a suede leather. The front panel has a zippered pouch which measures 10.5" wide, 8" high and 1.5 inches deep. The pouch is trimmed with a small panel of suede leather. There is the male half of a slider buckle with woven textile tab sewn to the front in the same assembly process that the pouch is affixed to the bag. There is a zippered pocket on the front of the pouch approximately 9" by 5.5". The bag has a top flap of polyester fabric and leather trim. The flap is fabricated with zippered pocket which is trimmed with an unidentified fabric decorative tape. The flap has the female half of a side release buckle sewn on by means of a woven textile tab. The slider buckle is used to secure the flap. The top of the bag has a drawstring closure with plastic cord lock enclosed in a gathered textile top. The rear of the backpack has standard double padded shoulder straps, with woven polypropylene (PP) straps and plastic three bar slides affixed, sewn to the top and bottom. There is a woven PP handle affixed to the top rear at a point where the flap joins the bag body. A matching woven PP tape covers the seam where the top handle and the shoulder straps are sewn under the top flap. All interior edges are finished with Polyvinyl Chloride (PVC) edging.

You have indicated that polyester fabric is sourced in Taiwan and the balance of the components are purchased in China. Components such as nylon zippers, plastic buckles, woven PP straps and tapes, foam and PVC binding will be sourced in Indonesia. The suede material will be sourced in China.

The manufacturing operations for the backpacks are as follows:

China:

1. The fabric piece goods and suede leather are cut to shape and notched forming the basic bag body components.

2. The front zippered pouch with suede trimmed zipper pocket is fabricated and affixed to the front bag panel.
3. The flap with zipper pocket is fabricated by sewing together a backing of rayon satin fabric, middle layer of paperboard stiffener, an inner lining of PVC sheeting and upper and lower panels of the polyester material. The upper and lower polyester panels are finished with nylon coil zipper tapes and a zipper pull is affixed. The female portion of the slider lock is affixed to the flap by means of a length of the woven PP tape and a small leather patch is used to reinforce the stress point and ornament the flap.

4. The double foam padded shoulder straps are fabricated from the polyester fabric, PP straps and adjustable buckles. The top woven PP handle is cut to length. The finished shoulder straps and handle are affixed to the bottom of the flap in a single process wherein a length of woven fabric overlay is sewn across the top of the flap.

5. The bottom suede panel is fabricated by joining two sewing together at the middle and finishing with a nylon lining material.

6. Create drawstring top by folding and sewing the top nylon material. Fabricate the drawstring by assembling the cord lock to the cord and knotting the ends. Insert the finished cord within the top.

Taiwan:

1. Sew the finished back panel to the finished leather bottom.

2. Sew the finished front panel to the bottom panel.

3. Sew the side panels to bottom panel.

4. Sew four vertical side seams joining each panel.

5. Affix the finished drawstring section to the top.

6. Sew the finished flap with straps and handle to the back.

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the nylon backpack will be 4202.92.3020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for travel, sport and similar bags with outer surface of textile materials, of man-made fibers, backpacks . The rate of duty will be 19 percent ad valorem.

Goods classified within tariff number 4202.92.3020, HTSUSA, fall within textile category designation 670. The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

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 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 or insular possession.

The backpacks are not wholly assembled in a single country or insular possession. Accordingly, as the backpacks do not meet the tariff shift, Section 102.21(c)(2) is inapplicable.

Section 102.21(c)(3) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) If 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.

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

Section 102.21 (c)(4) states, "Where 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 the case of the subject merchandise, the unassembled subassemblies, fabricated in China, are an otherwise complete backpack and constitute(s) the most important assembly or manufacturing process(es). Customs decision 960803, April 14, 1998, wherein a substantially similar process is described, is noted. Accordingly, the country of origin of the backpacks is China.

HOLDING:

The country of origin of the backpack is China. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa.

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.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 212-466-5893.

Sincerely,

Robert B. Swierupski
Director,

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