HQ 959478: Country of origin determination for cosmetic bags; 19 CFRSection 102.21(c)(5); HRL 958626

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 959478
                    
                    August 20, 1996

CLA-2 RR:TC:TE 959478 NLP

CATEGORY: Classification

Leonard L. Rosenberg, Esq.
Sandler, Travis & Rosenberg, P.A.
The Waterford
5200 Blue Lagoon Drive
Miami, FLA 33126-2022

RE:  Country of origin determination for cosmetic bags; 19 CFR
Section 102.21(c)(5); HRL     958626

Dear Mr. Rosenberg:

     This is in reply to your letter, dated July 12, 1996, on
behalf of your client, Jaclyn, Inc., in which you requested a
country of origin determination for three styles of bags which
will be imported into the United States.  This office was
provided with samples of the finished bags.

FACTS:

     The merchandise and the production processes are described
as follows:

     Style No. L-2682

     This style is a small cosmetic bag measuring approximately
8-1/2 inches by 6-1/4 inches and it is 2-1/2 inches wide at the
bottom.  The bag is primarily made from a single panel of woven
polyethylene lined with PVC.  It has a zippered closure that is
on the front panel about « inch from the top of the bag.  A
grosgrain loop is inserted into each side seam near the zipper
opening and a country of origin label is inserted into an inner
side seam.  The production processes are as follows:

          Country A

          Cut material into body panel
          Fold and sew body panel to lining and zipper
          Sew grosgrain loops
          Add zipper and pull and turn bag



          Country B

          Sew country of origin label 
          Join main body parts together (close sides by sewing)
          Stitch binding over seams for clean finish 
          Turn bag, trim loose threads, finish and pack into
polybags/export cartons

     Style No. L-2746

     This style is also a small cosmetic bag and is made from a
single panel of woven polyethylene lined with PVC.  It measures
approximately 8-1/2 inches across by 4-1/2 inches in height and
it expands to two inches in width at the bottom.  The bag has a
top zippered opening and a grosgrain loop is inserted into an
outer seam.  A country of origin label is sewn into an inner
seam.  The production processes are as follows:

          Country A

          Cut material into body panel
          Fold and sew body panel to lining and zipper
          Sew grosgrain loop
          Add zipper and pull and turn bag

          Country B

          Sew country of origin label 
          Join main body parts together (close sides by sewing)
          Stitch binding over seams for clean finish
          Turn bag, trim loose threads, finish and pack into
polybags/export cartons

     Style No. L-2645

     This style is a small flat rectangular-shaped cosmetic bag. 
The outer surface of the bag is made of woven polyethylene and is
lined with PVC.  The bag is approximately 8 inches across and 6
inches in length.   It has a top opening which is secured by a
zipper with a pull tab and the interior seams are covered with
PVC binding.  The production processes are as follows:

          Country A

          Cut material into two body panels
          Sew body panels to lining and zipper
          Add zipper and pull tab and turn bag inside


          Country B

          Sew country of origin label
          Close sides and bottom by sewing
          Stitch binding over seams for clean finish
          Turn bag to right side
          Cut loose thread, finish and pack into polybags/export
cartons

ISSUE:

     What is the country of origin of the subject cosmetic bags?


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
foreign material 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) 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:"

     4202.92.60-4202.92.90    A change to subheading 4202.92.60
through 4202.92.90                           from any other
heading, provided that the change is the                         result of the good being wholly assembled in a single                           country, territory, or insular
possession.


     The cosmetic bags are classifiable in subheading 4202.92,
HTSUS.  As the subject cosmetic bags are assembled in both
Country A and Country B, they are not wholly assembled in a
single country.  Accordingly, Section 102.21(c)(2) is
inapplicable in determining the country of origin of these bags.

     Paragraph (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."  We note that in Headquarters Ruling Letter (HRL)
958626, dated May 2, 1996, also issued to you, on behalf of
Jaclyn, Inc., Customs dealt, inter alia, with the country of
origin of a cosmetic bag, style no. L-1665-16, that was produced
in a very similar manner to the bags at issue herein.  For
example, in HRL 958626, in the first scenario presented, the
production processes were as follows: in Country A, the material
was cut into a body panel, the panel was folded and sewn to the
lining and zipper, the zipper tab was added and the bag was
turned.  In Country B, the country of origin label was sewn on,
the sides were closed by sewing, stitch binding over the seams
was performed, the bag was turned, loose threads were trimmed and
the bags were finished and packed.  In the second scenario
presented, the only difference was that in the first country
(Country B ) the bag was not turned and it was turned twice in
the second country (Country A).   Customs stated the following in
determining the country of origin of the bag:

          In the case of Style L-1665-16, the assembly operations
occurring in countries A           and B are equally important. 
Because this particular style is made primarily of one           body panel, both the process of folding the body panel and
connecting it to the          zipper, and the process of closing
the side seams are equally important.




     Accordingly, Customs determined that Section 102.21 (c)(4)
was not applicable and we based our country of origin
determination on Section 102.21 (c)(5), which states the
following:  "Where the country of origin of a textile or apparel
product cannot be determined under paragraph (c)(1), (2), (3) or
(4) of this section, the country of origin of the good is the
last country, territory or insular possession in which an
important assembly or manufacturing process occurred."  
Therefore, Customs held that the country of origin for the bag
was based on the last country in which an important manufacturing
operation occurred, and that was, respectively, Country B and
Country A.  

     In the case of the subject merchandise, the production
processes and assembly operations occurring in Country A and B
are almost identical to the ones performed in the production
scenarios presented for style L-1665-16 in HRL 958626. 
Therefore, the analysis used in that case is applicable in the
instant case.  As the assembly operations occurring in Countries
A and B are equally important, the country of origin for these
bags cannot be determined by application of Section 102.21
(c)(4).  Thus, Section 102.21 (c)(5) directs us to the last
country in which an important manufacturing operation occurred,
that is, in Country B.  Accordingly, for all three styles of
bags, the country of  origin is Country B.

HOLDING:

     The country of origin for Style Nos. L-2682, L-2746 and L-2645 is Country B.

     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 C.F.R.
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.

     Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 C.F.R.
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 C.F.R. 177.2.



                              Sincerely,



                              John Durant, Director
                              Tariff Classification Appeals
Division