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Hello,
I have read the reference of 102.21, and I’m not understanding the differences between these two questions. If both were cut and assembled in Hong Kong, what is the identifiable difference between these two manufacturing processes I am not seeing?
1. Question 1 point
Wilderness Inc. wants to begin importing tents. The material comprising the roof and walls is polyester fabric from Taiwan. One hundred percent plastic sheeting from Macau is used to make the tent floor. The cutting and assembly process is performed in Hong Kong. After the tents are assembled, they are shipped to China where they are packed in carrying bags along with the tent poles. The carrying bags are made in China and the poles are made in Germany. Which ONE of the following is the correct country of origin for the tents?A. Taiwan
B. Macau
C. Hong Kong
D. China
E. Germany
Correct. Correct choice is: A
Explanation: 19 CFR 102.21(c)(2)7. Question 1 point
Wacky Campers Inc. imports tents that are correctly classified under HTS subheading 6205.20.2046. The polyester fabric used for the tent roof is made in Taiwan. The polyester fabric used for the walls and the floor is made in Macau. The material is cut and assembled into tents in Hong Kong. After the tents are assembled, they are shipped to China where they are packed into a carrying bag along with the tent poles. The carrying bag is made in China and the tent poles are made in Germany. Which ONE of the following is the correct country of origin for the tents?A. Hong Kong.
B. Macau.
C. Taiwan.
D. China.
E. Germany.
Correct. Correct choice is: A
Explanation: 19 CFR 102.21(c)(2)Thanks for you help
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) of Section 102.21states that “[t]he 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.” Here, the tents are not wholly obtained or produced in a single country, territory or insular possession, and so paragraph (c)(1) of Section 102.21 is inapplicable.
Paragraph c(2)states that “[w]here 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.”Further, paragraph (e) states that “[t]he following rules will apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2).”
(1) If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
In the October 2002 exam question, the subject tents are classified in heading under HTS subheading 6205.20.2046. However, in the two scenarios described in both questions, none of the fabric for the tents’ outer shell is sourced in a single country. Accordingly, the terms of the tariff shift are not applicable.Paragraph c(3) states that [w]here 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 fabrics of chapter 59 and 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.Here the tents are not knit to shape and heading 6205 HTSUSA, is not excepted from provision (ii). In such cases where 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. Here the goods were cut and assembled in Hong Kong in both cases. The correct answer choice would be Hong Kong which is answer choice C in the April 2002 exam and answer choice A in the October 2002 exam. Question 10 of the April 2002 exam appears to be appealable.
Playing devil’s advocate on this posting (forgive me) – Maybe these notes hit the mark and align with how Customs would respond to an appeal to this question:
The Tariff provided (Heading 6205 – “Men’s or boys’ shirts”) in Question 7 – Wacky Campers Inc was inaccurate for tents but we were told that it was ‘correctly classified’, so we could not question it. Heading 6205 must follow provision (ii) and, as such, we are to determine the country of origin of the good is the country in which the good was wholly assembled (i.e., Hong Kong).
We were not provided a Tariff in Question 1 – Wilderness Inc. and, therefore, had to determine the Tariff ourselves. Tents are correctly classifiable under Heading 6306 (i.e., provision ‘ii’ would not apply to us), and we had to review §102.21 for additional Rules of Origin. Here we find that Heading 6306 goods are classifiable where the good was formed by fabric-making process. According to Question 1 – Wilderness Inc., the polyester fabric was made in Taiwan.
The correct answer to Question 7 – Wacky Campers Inc is A. Hong Kong; and
The correct answer to Question 1 – Wilderness Inc. is A. Taiwan.Yes, the classification of tents under heading 6205 is a forced classification and not a correct one but as you pointed out, that is likely to influence how the specific rules of origin to goods falling under heading 6205 are to be applied.
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