OT:RR:NC:N2:350
Elizabeth Morris
Rogers & Brown Custom Brokers, Inc.
9550 Hamburg Road Ladson, SC 29456
RE: Classification and country of origin determination for tire cord; 19 CFR 102.21(c)(2); tariff shift
Dear Ms. Morris:
This is in reply to your letter dated June 15, 2023, requesting a classification and country of origin determination for tire cord on behalf of your client, Cordenka GmbH & Co. KG. Samples were provided and sent for laboratory analysis. The samples will be retained for training purposes.
FACTS:
The subject merchandise is referred to as Cordenka Polyamide 6.6 Dipped Tire Cord Fabric 1880 dtex Z325 X2 S325. In your submission you state that the polyamide/nylon yarn originated in China and is shipped to Poland to be manufactured into fabric. The three-step fabric-making process includes twisting, weaving, and dipping in resorcinol-formaldehyde-latex (RFL) to create the tire cord fabric. The principal use of this fabric in the U.S. is for tire reinforcement.
In subsequent correspondence you state that the yarns are twisted in Poland using two or more yarns until the required cord parameters are reached, such as breaking strength, and elongation at break. The nylon warp yarn is woven into greige fabric with the weft yarn being of low tenacity cotton from Greece. The final step is the dipping of the greige fabric into the RFL.
U.S. Customs and Border Protection (CBP) laboratory analysis has determined that the nylon tire cord is of plain weave construction, composed of a multiple (two ply) nylon yarn in the warp direction and single (one ply) cotton yarn in the weft direction. The fiber content of the fabric by weight is 99.4 percent nylon and 0.6 percent cotton. The sample weighs 329.8 grams per square meter. The warp nylon yarn had an average tenacity of 69.1 centinewtons/tex.
ISSUES:
What is the classification and country of origin of the subject merchandise?
CLASSIFICATION:
Note 6 to Section XI states in pertinent part:
the expression high tenacity yarn means yarn having a tenacity, expressed in cN/tex (centinewtons per tex), greater than the following:
Single yarn of nylon or other polyamides, or of polyesters ................................. 60 cN/tex
Multiple (folded) or cabled yarn of nylon or other polyamides, or of polyesters.. 53 cN/tex
Single, multiple (folded) or cabled yarn of viscose rayon .................................... 27 cN/tex.
The Explanatory Notes to Subheading 5902 specify that high tenacity yarn in the warp direction qualify the fabric as meeting the criteria of high tenacity. The Explanatory Notes state in pertinent part:
This heading covers tyre cord fabric, whether or not dipped or impregnated with rubber or plastics.
These fabrics are used in the manufacture of tyres and consist of a warp of parallel filament yarns, held in place, at specific distances, by weft yarns. The warp always consists of high tenacity yarns of nylon or other polyamides, polyesters or viscose rayon, while the weft, widelyspaced and intended solely to hold the warp in place, may consist of other yarns.
Therefore, the tire cord fabric meets the criteria to be considered of high tenacity yarn.
The applicable subheading for the tire cord fabric will be 5902.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Tire cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon: Of nylon or other polyamides. The rate of duty will be 5.8 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/current.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states, 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, 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:
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:
5901-5903
(1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5901 through 5903 to finished fabric of heading 5901 through 5903 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(2) If the country of origin cannot be determined under (1) above, a change to heading 5901 through 5903 from any other heading, including a heading within that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5803, 5806, 5808, and 6002 through 6006, and provided that the change is the result of a fabric-making process.
The term Fabric-making process is defined in paragraph (b)(2) of Section 102.21 as:
any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarn, twine, cordage, rope, or fabric strips and results in a textile fabric.
In this case, the fabric is woven in Poland from polyamide and nylon yarn produced in China, which confers a tariff shift to heading 5902, HTSUS. Hence, because the change to subheading 5902.10, HTSUS, is a result of a fabric making process, the merchandise complies with the requisite tariff shift rule for heading 5902, HTSUS. Accordingly, the country of origin of the tire cord fabric is the country in which the fabric-making process occurs, that is, Poland.
HOLDING:
Per the terms of the tariff shift the country of origin is conferred in Poland.
The applicable subheading for tire cord fabric will be 5902.10.0000, HTSUS, which provides for Tire cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon: Of nylon or other polyamides. The rate of duty will be 5.8 percent ad valorem.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of Title 19 of the Code of Federal Regulations (19 CFR Part 177).
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, please contact National Import Specialist Michael Capanna at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division