HQ 957945: Country of origin of luggage pieces; Section 12.130, Customs Regulations

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 957945

                          August 7, 1995

CLA-2 R:C:T 957945 CAB

CATEGORY: Classification

Laurie Everill
JCPenny Purchasing Corporation
6501 Legacy Drive
Plano, TX 75301-0001

RE: Country of origin of luggage pieces; Section 12.130, Customs Regulations 

Dear Ms. Everill:

     This is in response to your inquiry of May 2, 1995, requesting a country of origin  
determination for luggage.  

FACTS:

     Several types of luggage are at issue.  The style number will be listed below in the
description of each set.  The first style of luggage at issue is marketed under The JCPenney label
of Jaguar Centennial.  Each set will contain its own JCPenney style as listed in parenthesis.  

     2 Piece set (JCP lot # 3690)            1 piece item (JCP lot # 3962) 

     22" x 15" x 8" upright carry-on         26" x 18" x 10" vertical pullman
     26" x 18" x 10" vertical pullman

     The outer shell of these articles is constructed of 55 percent ramie/45 percent polyester
with PVC backing and 210D nylon as lining.  The ramie is from China while the polyester and
other materials are from Taiwan.  The fibers are combined together in Taiwan to produce woven
fabric.  The woven fabric is then cut to length, width, and size in Taiwan.  The hardware which
includes steel wire and frames, wheels, piping, zipper, handles, etc. are all of Taiwanese origin. 
The cut materials and hardware is then transported to China where they will be assembled into
finished luggage pieces.  

     The second style of luggage at issue is referred to as Jaguar Freeport III.  The luggage is
described as follows:

     5 Piece set (JCP lot # 5140)            6 piece set (JCP lot # 5141)

     26" x 18" x 8" pullman             26" x 18" x 8" pullman
     20" x 13.5" x 7" upright carry on       20" x 13.5 x 7" upright carry on
     20" x 13" x 7" 1 compartment carry on   20" x 13.5 x 7" 1 compartment carry on
     15" x 19.5" x 7" satchel           15" x 19.5" x 7" satchel
     10" x 7" x 3.5" kit carrier             10" x 7" x 10" vertical pullman

     1 piece item (JCP lot # 5145)

     44" x 23" x 3.2" garment bag

     The Jaguar Freeport III luggage is made up of 70 percent jute/30 percent polyester fabric
with a PVC backing and a lining of 210D nylon.  The jute fibers are sourced in Thailand while the
other fibers are made in Taiwan.  The fibers are combined in Taiwan to form the final materials. 
The fabric is cut to length, width, and size in Taiwan.  The hardware is from Taiwan.  The cut
material and hardware is shipped to China where they are assembled into the final products.  

     The final style of luggage at issue is referred to as Jaguar Spring Bouquet II.  The luggage
is described as follows:

     5 piece set (JCP lot # 5500)            6 piece set (JCP lot # 5502)

     26" x 18" x 8" pullman             26" x 18" x 8" pullman
     20" x 13.5" x 7" upright carry on       20" x 13.5 x 7" upright carry on
     20" x 13" x 7" 1 compartment carry on   20" x 13" x 7" 1 compartment carry on
     15" x 9.5" x 7" satchel            15" x 9.5 x 7" satchel
     10" x 7" x 4" cosmetic bag              10" x 7" x 4" cosmetic bag
                                   28" x 20" x 10" vertical pullman

     2 piece set (JCP lot # 5510)            1 piece item (JCP lot # 5510A)

     50" x 23" x 3" garment bag              50" x 23" x 3"
     28" x 20" x 10" vertical pullman

     The fiber content of the outer shell of the Jaguar Spring Bouquet II luggage is 
60 percent jute/40 percent polyester with PVC backing and 210D nylon lining.  The jute fibers are
from Thailand while all the other fibers are from Taiwan.  The fibers are combined together as
well as cut to length, width, and size in Taiwan.  The hardware is from Taiwan.  All the cut
material and hardware will be shipped to China where they will be assembled into the individual
luggage pieces.  


ISSUE:

     What is the country of origin for the luggage at issue?

LAW AND ANALYSIS:

     Country of origin determinations for textile products are subject to Section 12.130,
Customs Regulations (19 CFR 12.130).  Section 12.130 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 subsequent
manufacturing or processing operations into a new and different article of commerce.

     Section 12.130(d), Customs Regulations, sets forth criteria for determining whether a
substantial transformation of a textile product has taken place.  This regulation states 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), Customs Regulations, 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), Customs Regulations, states that for 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;

     (ii) The time involved in the manufacturing or processing operation;

     (iii)     The complexity of the manufacturing or processing operation;

     (iv) The level or degree of skill and/or technology in the manufacturing or processing         operations; and

     (v)  The value added to the article or material.

     Section 12.130(e)(1), Customs Regulations, describes manufacturing or processing
operations from which an article will usually be considered a product of the country in which
those operations occurred.  Section 12.130(e)(1)(iv), Customs Regulations, specifically provides 


that the cutting of fabric into parts and the assembly of those parts into the completed article will
be a manufacturing operation that will usually result in an article being considered a product of the
country in which those operations occurred.

     In this instance, fabric is cut to length and width and size in Taiwan.  The significant
hardware is sourced in Taiwan.  The materials will then be transported to China where they will
be assembled into the finished luggage pieces.  The issue is whether the assembly and packing of
these components constitute a substantial transformation in China.  In prior instances, Customs
has determined that such processing is simple and does not amount to a substantial
transformation.  In the recent Headquarters Ruling Letter (HRL) 957872, dated April 24, 1995,
Customs determined that luggage constructed of fabric woven and cut in Taiwan and assembled 
in China with hardware sourced from Taiwan was a product of Taiwan.  See also, HRL 956377,
dated August 9, 1994, where suitcases comprised of components manufactured, cut and partially
assembled in Taiwan and further assembled by gluing, sewing, riveting, heat sealing and bending a
frame to shape in China were goods originating in Taiwan.  In light of the prior rulings with
similar facts, we find that the assembly and packing operation of the instant luggage in China does
not amount to a substantial transformation.  The subject luggage pieces are products of Taiwan.

HOLDING:

     The country of origin of the subject luggage pieces is Taiwan.  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 177.9(b)(1), Customs Regulations (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 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.  

                                   Sincerely,



                                   John Durant, Director
                                   Commercial Rulings Division