HQ 957343: Classification and country of origin of travel bags; diaper and bottle bags; 19 CFR 12.130.

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 957343

                         January 25, 1995

CLA-2 CO:R:C:T 957343 ch

CATEGORY:  Classification

TARIFF NO.:  4202.92.2000

Dan Allen
Miami Valley Worldwide
P.O. Box 2408
Dayton, Ohio  45401

Re:  Classification and country of origin of travel bags;
     diaper and bottle bags; 19 CFR 12.130.

Dear Mr. Allen:

     This is in response to your letters of September 22, 1994,
and September 30, 1994, requesting a classification and country
of origin ruling for certain bags used to transport and store
infant supplies.

FACTS:

     The submitted samples are described as totes for carrying
infant supplies such as diapers, bottles, clothing and food.  The
completed articles are identified as styles 1263 (Pooh Denim),
1261 (Friends Forever), 1277 (Oh Bother), 1260 (Friends Forever)
and 1276 (Oh Bother).  The goods possess an exterior surface of
both plastic sheeting and textile materials (predominantly ramie
by weight, not of pile or tufted construction), with textile
materials occupying the greatest portion of the surface area
visible when they are carried.   

     The bags are fabricated from materials manufactured in
Taiwan and include textile fabric, PVC sheeting, foam, labels,
zippers, webbing, hangtags, thread, hook and loop material and
cardboard.  The materials are die-cut to specific size in Taiwan
and are assembled by sewing operations in China.  The costs for
materials and labor in Taiwan comprise between 80 and 85 percent
of the total cost of manufacturing the bags.

ISSUES:

     What is the tariff classification for the bags?

     What is the country of origin for the bags?

LAW AND ANALYSIS:

                          Classification

     Heading 4202, HTSUS, encompasses various containers,
including travel, sports and similar bags designed for carrying
clothing and other personal effects during travel.  See Chapter
42, Additional U.S. Note 1.  The submitted samples meet this
description, as they function principally as carrying bags for
infant supplies.  Hence, they are classifiable as travel bags of
subheading 4202.92, HTSUS.

     At the eight-digit subheading level, articles of heading
4202 are classified with reference to their exterior surface. 
The instant totes possess exterior surfaces of both plastic
sheeting and textile materials.  Pursuant to General Rules of
Interpretation 3(a) and 3(b), and in conjunction with General
Rule of Interpretation 6, the material imparting the essential
character to the outer surface shall be employed for
classification purposes.  In this instance, the textile materials
occupy the greatest portion of the surface area visible when the
bags are in use.  In our judgment, the textile materials impart
the most striking visual and tactile qualities to the exterior
surface.  Consequently, we conclude that the totes possess outer
surfaces of textile materials for classification purposes. 
Travel bags with exterior surfaces predominantly of ramie by
weight, not of pile or tufted construction, are classifiable in
subheading 4202.92.2000, HTSUS.

                        Country of Origin

     Country of origin determinations for textile products are
subject to Section 12.130 of the Customs Regulations (19 CFR
12.130).  Section 12.130(b) provides that a textile product that
is processed in more than one country or territory shall be a
product of that country or territory where it last underwent a
substantial transformation.  A textile product will be considered
to have undergone a substantial transformation if it has been
transformed by means of substantial manufacturing or processing
operations into a new and different article of commerce.

     Section 12.130(d) of the Customs Regulations sets forth
criteria in determining whether a substantial transformation of a
textile product has taken place.  This regulation states that
these criteria are not exhaustive; one or any combination of
criteria may be determinative, and additional factors may be
considered.

     Section 12.130(d)(1) states that a new and different article
of commerce will usually result from a manufacturing or
processing operation if there is a change in:

     (i)    Commercial designation or identity,
     (ii)   Fundamental character or
     (iii)       Commercial use.

     Section 12.130(d)(2) of the Customs Regulations states that
in determining whether merchandise has been subjected to
substantial manufacturing or processing operations, the following
will be considered:

     (i)  The physical change in the material or article as
     a result of the manufacturing or processing operations
     in each foreign territory or country, or insular
     possession of the United States.

     (ii)  The time involved in the manufacturing or
     processing operations in each foreign territory or
     country, or insular possession of the United States.

     (iii)  The complexity of the manufacturing or
     processing operations in each foreign territory or
     country, or insular possession of the United States.

     (iv)  The level or degree of skill and/or technology
     required in the manufacturing or processing operations
     in each foreign territory or country, or insular
     possession of the United States.

     (v)  The value added to the article or material in each
     foreign territory or country, or insular possession of
     the United States, compared to its value when imported
     into the United States.

     Section 12.130(e)(1) sets forth manufacturing or processing
operations which will usually constitute a substantial
transformation.  Section 12.130(e)(2) enumerates instances which
will usually not constitute a substantial manufacturing or
processing operation.  In Treasury Decision (T.D.) 85-38,
published in the Federal Register on March 5, 1985, (50 FR 8714),
the final rule document which established 19 CFR 12.130, there is
a discussion of how the examples and factors enumerated in the
regulation are intended to operate:

     Examples set forth in 19 CFR 12.130(e) are intended to
     give guidance to Customs officers and other interested
     parties.  Obviously, the examples represent clear
     factual situations where the country of origin of the
     imported merchandise is easily ascertainable.  The
     examples are illustrative of how Customs, given factual
     situations which fall within those examples, would rule
     after applying the criteria listed in 12.130(d).  Any
     factual situation not squarely within those examples
     will be decided by Customs in accordance with the
     provisions of 12.130(b) and (d).

     Section 12.130(e) reads as follows:

     Manufacturing or processing operations.  (1) An article
     or material usually will be a product of a particular
     foreign territory or country, or insular possession of
     the U.S., when it has undergone prior to importation
     into the U.S. in that foreign territory or country, or
     insular possession any of the following:

          (i)  Dyeing of fabric and printing when
     accompanied by two or more of the following finishing
     operations:  bleaching, shrinking, fulling, napping,
     decating, permanent stiffening, weighting, permanent
     embossing, or moireing;

          (ii)  Spinning fibers into yarn;

          (iii)  Weaving, knitting or otherwise forming
     fabric;

          (iv)  Cutting of fabric into parts and the
     assembly of those parts into the completed article; or

          (v)  Substantial assembly by sewing and/or
     tailoring of all cut pieces of apparel articles which
     have been cut from fabric in another foreign territory
     or country, or insular possession, into a completed
     garment (e.g. the complete assembly and tailoring of
     all cut pieces of suit-type jackets, suits and shirts).

     (2)  An article or material usually will not be
     considered to be a product of a particular foreign
     territory or country, or insular possession of the U.S.
     by virtue of merely having undergone any of the
     following:

          (i)  Simple combining operations, labeling,
     pressing, cleaning or dry cleaning, or packaging
     operations, or any combination thereof;

          (ii)  Cutting to length or width and hemming or
     overlocking fabrics which are readily identifiable as
     being intended for a particular commercial use;

          (iii)  Trimming and/or joining together by sewing,
     looping, linking, or other means of attaching otherwise
     completed knit-to-shape component parts produced in a
     single country, even when accompanied by other
     processes (e.g. washing, drying, mending, etc.)
     normally incident to the assembly process;

          (iv)  One or more finishing operations on yarns,
     fabrics, or other textile articles, such as
     showerproofing, superwashing, bleaching, decating,
     fulling, shrinking, mercerizing, or similar operations;
     or

          (v)  Dyeing and/or printing of fabrics or yarns.

          (Emphasis added).

     In this instance, the materials comprising the finished
articles have been manufactured and cut to specific size in
Taiwan.  The issue presented is whether the assembly of these cut
components by means of sewing operations in China constitute a
substantial transformation.  In prior ruling letters in this
area, we have determined that such processing does not constitute
a substantial transformation.  See Headquarters Ruling Letter
(HRL) 956377, dated August 9, 1994 (Suitcases comprised of
components manufactured, cut and partially assembled in Taiwan,
assembled by gluing, sewing, riveting and other simple assembly
processes in China, are goods originating in Taiwan); HRL 956428,
dated May 26, 1994 (Textile pouches manufactured from fabric and
components produced and die cut in Taiwan, assembled in China by
sewing, are products of Taiwan); HRL 955799, dated April 28, 1994
(Knapsacks, pouches and carry-alls manufactured and cut in
Taiwan, assembled by sewing in China, are products of Taiwan);
HRL 955666, dated April 19, 1994 (Golf bags, photo/video bags,
computer bags, compact disc  cases, backpacks composed of fabrics
and components produced and cut in Korea and the United States,
assembled by means of sewing operations in China, are products of
Korea); HRL 954225, dated August 30, 1993 (Textile tote bags and
luggage manufactured and cut into panels in Taiwan which are
assembled in China are goods originating in Taiwan); HRL 952642,
dated May 10, 1993, (Sports bags, knapsacks, insulated lunch bags
manufactured and cut to size in Taiwan and assembled/packed in
China are goods originating in Taiwan); HRL 953065, dated April
9, 1993 (Bicycle bags consisting of components originating and
cut to shape in Taiwan, assembled by simple sewing operations in
China, are goods originating in Taiwan); HRL 951899, dated
October 31, 1992 (Tote bags and luggage with components
fabricated and cut to shape in Taiwan, stitched and assembled in
China, originate in Taiwan); HRL 088455, dated March 8, 1991
(Nylon backpack comprised of components originating and cut to
shape in Taiwan, assembled by simple sewing and packaging
operations in Indonesia, are products of Taiwan).  Based upon
ample precedent, we conclude that the assembly of the instant
travel bags in China does not constitute a substantial
transformation.  Accordingly, the bags are products of Taiwan.  

HOLDING:

     The subject merchandise is classifiable under subheading
4202.92.2000, HTSUS, which provides for travel, sports and
similar bags:  with outer surface of textile materials:  of
vegetable fibers and not of pile or tufted construction:  other. 
The applicable rate of duty is 6.4 percent ad valorem.  The
textile category is 870.

     The designated textile and apparel category may be
subdivided into parts.  If so, visa and quota requirements
applicable to the subject merchandise may be affected.  Since
part categories are the result of international bilateral
agreements which are the subject of frequent negotiations 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 issuance
of the U.S. Customs Service, which is updated weekly and is
available at the local Customs office.

     Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact the local
Customs office prior to importing the merchandise to determine
the status of any import restraints or requirements.

     The country of origin of the subject merchandise is Taiwan. 
This holding applies only to the specific factual situation and
merchandise identified in the ruling request.  This position is
clearly set forth in section 177.9(b)(1), Customs Regulations (19
CFR 177.9(b)(1)), which states that a ruling letter is issued on
the assumption that all the information furnished in connection
with the ruling request and incorporated in the ruling letter,
either directly, by reference, or by implication, is accurate and
complete in every material respect.  Should it subsequently be
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, it is
recommended that a new ruling request be submitted in accordance
with section 177.2, Customs Regulations (19 CFR 177.2).  

                         Sincerely,



                         John Durant, Director
                         Commercial Rulings Division