Mr. Ronald Osborne
Globus Mercantile Co., Inc.
10 East 40th Street, #3612
New York, NY 10016
RE: Classification and country of origin determination for yarn; 19 C.F.R. §102.21(c)(4)
Dear Mr. Osborne:
This is in reply to your letter dated January 6, 1999, requesting a classification and country of origin determination for viscose rayon yarn which will be imported into the United States.
The subject merchandise consists of plied 100 percent viscose rayon yarn.
The manufacturing operations for the yarn are as follows: Yarn will be spun in the Philippines into a single yarn. The yarn will then be shipped to Indonesia, where it will be plied into a multiple yarn and put up on cones weighing in excess of 4 pounds each cone.
What are the classification and country of origin of the subject merchandise?
The applicable subheading for the yarn will be 5510.12.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for yarn(other than sewing thread) of artificial staple fibers, not put up for retail sale, containing 85 percent or more by weight of artificial staple fibers, multiple (folded) or cabled yarn. The rate of duty will be 11.3 percent ad valorem.
The yarn falls within textile category designation 603. The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.
COUNTRY OF ORIGIN - 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Section 334 of that Act (codified at 19 U.S.C. §3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 of the foreign materials 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) in pertinent part 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":
HTSUS Tariff shift and/or other requirements
5508-5511 A change to heading 5508 through 5511 from any heading outside that group, provided that the change is a result of a spinning process.
Section 102.21(e) states that the change must be from any heading outside of headings 5508 through 5511 and be the result of a spinning process. Accordingly, as the yarn does not undergo the required change, Section 102.21(c)(2) is inapplicable.
Section 102.21(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”.
Section 334 rules of origin for textile and apparel products state, in pertinent part, that a textile or apparel product originates in a country and is the growth, product, or manufacture of theat country if:
“(B) the products is a yarn, thread, twine, cordage, rope, cable, or braiding and-
(i) the constituent staple fibers are spun in that country, territory or possession, or
(ii)the continuous filament is extruded in that country, territory or possession,”
In the case of the subject merchandise, the spinning constitutes the most important assembly process. Accordingly, the country of origin of the yarn is the Philippines.
The country of origin of the yarn is the Philippines. Based upon international textile trade agreements products of the Philippines are subject to quota and the requirement of a visa.
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 sections states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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.
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Camille Ferraro at 212-466-5885.
Robert B. Swierupski