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NY G85400





January 10, 2001

CLA2-RR:NC:TA:351 G85400

CATEGORY: CLASSIFICATION

Paula M. Connelly
Middleton & Shrull
44 Mall Road, Suite 208
Burlington, MA 01803-4530

RE: Classification and country of origin determination and country of origin marking for cooler bags; 19 CFR 102.21(c)(2); tariff shift.

Dear Ms. Connelly:

This is in reply to your letter dated December 11, 2000, on behalf of your client, The GEM Group, of Lawrence, MA, requesting a classification and country of origin and marking determinations for cooler bags which will be imported into the United States.

FACTS:

The subject merchandise consists of an insulated cooler bag, style 9475. It is approximatly 7” tall with a base approximately 6” x 9”, with rounded corners. It closes with a two-way zipper. There is a pocket sewn onto the front, approximately 6” x 9”, which closes with a two-way zipper. There is a mesh pocket on the back, approximately 5” x 5½”, which has an elasticized top. There is an adjustable web shoulder strap.

The cooler bag is manufactured from three distinct layers of material. The exterior or outer layer is manufactured from a man-made fiber woven fabric which has been coated or laminated on one side with a layer of polyurethane (PU) or polyvinyl chloride (PVC) plastic. The plastic surface faces the outside of the bag and has been embossed to simulate the look of a woven fabric. This embossed textile surface faces outward. The inward-facing surface has been laminated to a woven fabric. The middle layer of this product is a thin layer of plastic foam that measures approximately 3/8” in thickness and functions as an insulating and cushioning material. The innermost layer of the bag is a lining of plastic sheeting.

An alternative construction would be identical except that the outer layer would be nylon or polyester, untreated on either surface.

The manufacturing operations for the bags are as follows: The fabric, regardless of fiber content and coating (if any) will be manufactured in Taiwan. All fabric will be shipped in rolls to either China or Vietnam. The foam insulation, the inner plastic lining, the webbing for the handles, and zippers, will be of Taiwanese, Chinese, or Vietnamese origin. However, the cooler bags will be assembled in one country, either China or Vietnam.

ISSUES:

What are the classification and country of origin of the subject merchandise, and what is the proper country of origin marking?

CLASSIFICATION:

The applicable subheading for the bag of PVC- or PU-treated fabric will be 6307.90.9989, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other made up articles, including dress patterns, other, other, other, other, other. The general rate of duty will be 7 percent ad valorem.

The applicable subheading for the bag of untreated nylon or polyester fabric will be 6307.90.9907, HTSUSA, which provides for other made up articles, including dress patterns, other, other, other, other, cooler bags, with an outer surface of textile materials, of man-made fibers. The general rate of duty will be 7 percent ad valorem.

Subheading 6307.90.9907 falls within textile category designation 670. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.GOV. In addition, 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 and should also be verified at the time of shipment.

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

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.”

All the fabric used in the manufacture of these insulated bags, except the web strap and additional textile trimmings, was formed in a single country, that is, Taiwan. We have determined in a simple desk test that the total weight of the web strap and additional trimmings is not more than 7 percent of the total weight of the finished bag, and thus, meets the De Minimus rule stipulated in Section 102.13 of the Regulations. As such, the web strap and additional textile trimmings are to be disregarded when determining the country of origin of the finished product.

As the as per the terms of the tariff shift requirement, country of origin is conferred in Taiwan.

MARKING:

If The GEM Group wishes to make reference on the cooler bags to a locality which is not its country of origin, the name of the foreign country of origin must be preceded by “Made in,” “Product of,” or words of similar meaning pursuant to 19 C.F.R. §134.46. In regard to the bags assembled in China and the marking, “Fabric Made in Taiwan Cut and Sewn in China,” we find that the requirements of 19 C.F.R. §134.46 are satisfied. Since the country of origin of the fabric will be preceded by “Made in,” and the marking will indicate to the ultimate purchaser the foreign origin of the article imported into the U.S., we find that the marking, “Fabric Made in Taiwan Cut and Sewn in China” on the finished cooler bags will be an acceptable country of origin marking for the finished cooler bags under 19 U.S.C. §1304.

HOLDING:

The bag of PVC- or PU-treated fabric will be classified in subheading 6307.90.9989, HTS, while the bag of untreated nylon or polyester fabric will be classified in subheading 6307.90.9907, HTS. The country of origin of both cooler bags is Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa. The bags assembled in China may be marked, “Fabric Made in Taiwan Cut and Sewn in 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 Mitchel Bayer at 212-637-7086.

Sincerely,

Robert B. Swierupski
Director,

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