HQ 955087: Country of origin under 19 CFR 12.130 for certain textile travel bags and backpacks.

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 955087

                        December 22, 1993

CLA-2 CO:R:C:T 955087 ch

CATEGORY:  Classification

Diane L. Weinberg, Esq.
Sandler, Travis & Rosenberg, P.A.
505 Park Avenue
New York, New York  10022-1106

RE:  Country of origin under 19 CFR 12.130 for certain
     textile travel bags and backpacks.

Dear Ms. Weinberg:

     This is in response to your letter of September 17, 1993, on
behalf of Jong Lih Plastic Enterprise Co., Ltd., requesting a
country of origin determination for certain textile travel bags.

FACTS:

     The submitted samples are two textile travel bags, styles
204204 and 204205, and a textile backpack, style 204203.  They
are primarily composed of a heavy duty 420 denier nylon fabric
and are lined with a 210 denier nylon fabric.  

     The containers are comprised of components which are
manufactured in Taiwan.  These materials include yarn that is
spun from filaments and woven into fabric.  The resulting fabric
is dyed and finished and then cut to shape for use as panels,
pockets and straps.  All other components used to manufacture the
bags, including rivets, threads, velcro, plastic hooks, nylon
net, paperboard, zippers, cords, padding, labels and webbing, are
produced in Taiwan.  Some of the materials will be printed and
embroidered with logos prior to exportation.  In China, the
components will be assembled by sewing and riveting operations
and the finished articles are then packaged.

     You have submitted time and cost calculations for style
204204 indicating that the time required to fabricate and finish
the materials in Taiwan is approximately 86.5 minutes, while the
cost of these operations is $5.93.  In addition, the assembly and
packing operations taking place in China require approximately 62
minutes, at a cost of $1.35.  This time and cost estimate is said
to be roughly representative of the remaining styles as well.

ISSUE:

     What is the country of origin for the subject merchandise?

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
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.

     In this instance, the major operations of spinning the nylon
filaments into yarn, weaving the yarn into fabric, cutting the
fabric to shape and fabricating the remaining components are
performed in Taiwan.  These operations convert raw materials into
component parts dedicated for use in the finished containers. 
The labor and material costs incurred in Taiwan are significantly
greater than those incurred in China.  The time necessary to
perform the operations in Taiwan exceed that needed in China.

     In addition, Subsection 12.130(e)(2) states in part that an
article usually will not be considered to be a product of a
particular foreign country by virtue of merely having undergone:

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

                         *      *      *

     (ii) 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.

The operations performed in China in this case appear to be the
simple assembly, combining and packaging operations identified in
Subsection 12.130(e)(2).  Therefore, these activities are not
substantial operations which would transform the articles into
textile goods originating in China.  

     Finally, our prior country of origin determinations for
containers similar to the instant merchandise support the
conclusion that these goods originate in Taiwan.  See
Headquarters Ruling Letter (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 on the foregoing, we conclude that the operations
performed in China do not result in a substantial transformation. 
Accordingly, the country of origin of the instant tote bags and
backpack is Taiwan.

HOLDING:

     The country of origin of the subject merchandise 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)), 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