CLA-2-98:S:N:N6:351 888693
Mr. Steve Liptak
Inter-Maritime Forwarding Co. Inc.
156 William Street
New York , NY 10038
RE: The tariff classification and country of origin of re-
embroidered lace fabric from the Philippines.
Dear Mr. Liptak:
In your letter dated July 29, 1993, on behalf of Val Mode
Lingerie, you requested a country of origin ruling.
You have submitted two samples of lace fabrics, as follows:
first, a swatch of American-made lace purchased in yardage on rolls
and, second, a swatch of the same fabric after it has been re-
embroidered in the Philippines. It will be returned to Val Mode on
rolls and no cutting will be done to this lace while in the
Philippines. The re-embroidery work done in the Philippines
consists of sewing gimped yarns on to the base material to
highlight and outline the lace pattern. The U.S. ground material
appears to be of real lace construction, and it has an open-work
floral pattern. The fabrics, with scalloped edges, measure 3 3/4
inches in width.
The applicable subheading for the re-embroidered lace
imported from the Philippines will be 5810.92.0080, Harmonized
Tariff Schedule of the United States (HTS), assuming that the
ground fabric is of man-made fibers and not knitted. This
subheading provides for embroidery in the piece, ..., other
embroidery, of man-made fibers, other, other. The rate of duty
will be 16 percent ad valorem.
The re-embroidered lace falls within textile category
designation 229. Based upon international textile trade agreements
products of the Philippines are subject to quota and the
requirement of a visa.
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. Since 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.
Also, because the lace's original ground fabric is of U.S.
origin, an allowance may be made for the value of this supplied
American-made portion of the material returned from the
Philippines, if the requirements of the Customs Regulations are
met, under subheading 9802.00.8060, HTS. This subheading provides
for articles assembled abroad in whole or in part of fabricated
components, the product of the United States.
Val Mode indicates their intent is to make garments in Mexico
under "807 Special Regime" (i.e. under 9802.00.8010, HTS). Besides
the re-embroidered lace described above, all materials to be used
in the garments will be made in the United States. The fabrics,
including the lace, are sent to El Paso, Texas for cutting before
shipment to Mexico for assembly. You ask, on behalf of your
client, whether the re-embroidering of the lace in the Philippines
excludes these garments from qualifying under "807 Special Regime",
or whether the lace is still considered to be formed and finished
in the United States.
The country of origin of the American-made lace re-embroidered
in the Philippines will be the Philippines, not the United States.
In HTS chapter 98, which covers "Articles Exported and Returned,
Advanced or Improved Abroad"; Subchapter II, U.S. Note 2 (a) states
that "... any imported article which has been assembled abroad in
whole or in part of products of the United States, shall be treated
for the purposes of this Act as a foreign article."
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport