CLA-2 RR:TC:TE 959472 CAB
Connie Knuenz
The Austrian Trade Commission
In the United States
150 East 52nd Street
32nd Floor
New York, NY 10022-6017
RE: Country of origin of embroidered fabric; Section
102.21(c)(2), Customs Regulations
Dear Ms. Knuenz:
This is in response to your inquiry of July 8, 1996,
requesting a country of origin determination for embroidered
fabric pursuant to Section 102.21, Customs Regulations. Fabric
samples were submitted for examination.
FACTS:
The fabric at issue is 100 percent embroidered cotton fabric
that is woven in China. This cotton fabric is transported to
Austria where it is embroidered with yarns from Switzerland. You
state that eventually these yarns will be sourced in Austria.
The fabric is also bleached and cut in Austria. At importation
into the United States, the fabric measures 51 inches by 10 or 15
yards.
ISSUE:
I. What is the country of origin for the subject fabric?
2. Whether a certificate of origin is requested when the
subject merchandise is imported into the United States?
LAW AND ANALYSIS:
Pursuant to Section 334 of the Uruguay Round Agreements Act
(codified at 19 USC Section 3592), new rules of origin were
effective for textile products entered, or withdrawn from
warehouse, for consumption on or after July 1, 1996. These rules
were published in the Federal Register, 60 Fed. Reg. 46188
(September 5, 1995). Section 102.21, Customs Regulations (19 CFR
Section 102.21), sets forth the general rules to determine
country of origin. Thus, the country of origin of a textile
product is determined by a hierarchy of rules set forth in
paragraphs (c)(1) through (c)(5) of Section 102.21.
Section 102.21(c)(1) sets forth the general rule for
determining the country of origin of a textile or apparel product
when the good is wholly obtained or produced in a single country,
territory, or insular possession. As the subject embroidered
fabric is not wholly obtained or produced in a single country,
territory, or insular possession, Section 102.21(c)(1) is
inapplicable.
Section 102.21(c)(2) provides for instances where the
country of origin of a textile or apparel product cannot be
determined under paragraph (c)(1) of this section. Section
102.21(c)(2) states:
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.
Section 102.21(e) states "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:"
5810.91-5810.99 (1) For embroidered fabric, the country
of origin is the country, territory, or
insular possession in which the fabric
was produced by a fabric-making process.
Heading 5810 of the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), is the provision for embroidery in the
piece, in strips or in motifs. In this instance, the subject
embroidered fabric fits within the purview of Heading 5810,
HTSUSA. Specifically, the subject material is classifiable in
subheading 5810.91, HTSUSA, which provides for other embroidery
of cotton.
As the embroidered fabric is not wholly obtained or produced
in a single country, we must apply Section 102.21(c)(2) and the
applicable requirement of Section 102.21(e) to the proposed
scenario to determine the country of origin of the subject goods.
Pursuant to the applicable provisions of Section 102.21(e), the
country of origin of the subject embroidered fabric is China,
the country where the fabric was formed by a fabric-making
process. This determination is in accordance with Headquarters
Ruling Letter (HRL) 959340, dated July 10, 1996, where Customs
determined that the country of origin of embroidered cotton
fabric woven in China and embroidered in Thailand, was China, the
country where the fabric was woven.
You also question whether a certificate of origin is
requested when the subject merchandise is imported into the
United States. Pursuant to Section 181.22, Customs Regulations,
a certificate of origin is used to certify that a good being
exported from a North American Free Trade Agreement (NAFTA)
signatory (United States, Mexico, Canada) qualifies as an
originating good for purposes of preferential tariff treatment
under the NAFTA. In this instance, the subject embroidered
fabric is not being exported from a NAFTA signatory nor is
preferential duty treatment requested, therefore, a certificate
of origin is not required at the time of importation.
HOLDING:
The country of origin of the embroidered fabric is China.
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 CFR
177.9(b)(1). This section states that ruling letter is issued on
the assumption that all of the information
furnished in the 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 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, 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 CFR
177.2.
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division