us-cbp-cross-rulings-hq-957872•HQ 957872: Country of origin for certain luggage; 19 CFR 12.130.
HQ 957872: Country of origin for certain luggage; 19 CFR 12.130.
us-cbp-cross-rulings-hq-957872HQ 957872: Country of origin for certain luggage; 19 CFR 12.130.Guidance
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 957872
April 24, 1995
CLA-2 R:C:T 957872 ch
CATEGORY: Classification
Daniel J. Gluck, Esq.
Serko & Simon
One World Trade Center
Suite 3371
New York, New York 10048
Re: Country of origin for certain luggage; 19 CFR 12.130.
Dear Mr. Gluck:
This is in response to your letter of March 8, 1995, on
behalf of your client, Airway Industries, requesting a country of
origin determination for "Infinity Control Track" luggage.
FACTS:
The luggage is identified as #3643026, Up-Right Pullman,
measuring 26 inches by 19 inches by 9 inches. You have
summarized the production and assembly of the article as follows:
Taiwan Operations
1. 1200D polyester fabric, is woven, dyed, printed,
finished and backed with PVC backing material. (Production of
the PVC backing material, which is also used to cover the steel
frame and inner bottom piece, involves a process of dyeing,
extruding, and finishing sheets of polyvinyl chloride);
2. 210D nylon material, used as interlining, is woven,
dyed, printed, finished and a PU coating is applied;
3. Mesh fabric, used as internal dividers, is woven, dyed
and finished;
4. Webbing, elastic bands and hook and loop fasteners are
manufactured (involving weaving, dyeing and finishing);
5. Zippers are manufactured (involves weaving, dyeing,
finishing, casting, plating and assembly);
6. PVC "sponge" and "leather," used on handles, etc., are
manufactured (involves dyeing, extruding and finishing);
7. Plywood, used in the base, is imported and then cut to
length and width;
8. PVC exterior piping is manufactured;
9. PE Board, used on the interior edges, is dyed, extruded
and finished;
10. Steel wheels and handle assembly are manufactured;
11. Steel framing is manufactured;
12. Hanger bracket and plastic buckles are manufactured;
13. Plastic studs and interior tube reinforcements are
manufactured; and
14. Materials are cut and formed into pieces and the cut
pieces are bundled for shipping.
China Operations
1. The steel frame is heat sealed and bent to shape;
2. Accessories are riveted onto patches;
3. The patches, webbing and zippers are sewn onto panels;
4. The front and side panels are assembled and sewn
together;
5. The steel frame, handle system and wheels are riveted
together;
6. The back panel is attached and sewn; and
7. The merchandise is packaged.
You also state that approximately 6/7 of the costs
associated with manufacturing the goods (inclusive of materials
and labor) are incurred in Taiwan.
ISSUE:
What is the country of origin for the luggage?
LAW AND ANALYSIS:
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
article have been manufactured and cut to specific size in
Taiwan. The issue presented is whether the assembly and packing
of these components 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, further assembled by gluing,
sewing, riveting, heat sealing and bending a frame to shape 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 and packaging of the instant luggage in China does not
constitute a substantial transformation. Accordingly, the goods
are products of Taiwan.
HOLDING:
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
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