CLA-2-56:OT:RR:NC:N3:351
Ms. Hoi Yiu Shek
Silver Timing Limited
8/F Pioneer Place, 33 Hoi Yuen Road
Kwun Tong, Hong Kong
RE: The tariff classification and country of origin of textile curling ribbons; 19 CFR 102.21(c)(3); 19 CFR 102.21(c)(4); wholly assembled; most important assembly
Dear Ms. Shek:
In your original letter received May 10, 2019, and your follow up letter dated on June 6, 2019, you requested a tariff classification and country of origin ruling. You provided samples with your ruling request. The samples were sent to the U.S. Customs and Border Protection laboratory for analysis.
The submitted samples of item G91430 consist of metallized curling ribbon presented on three spools of varying finishes: smooth, textured and holographic. Each spool includes four colors: gold, silver, red and green. The ribbons are composed of two layers of plastic which have been bonded together with a metallic layer in between. You state the ribbons are composed of 90 percent polypropylene (PP) and 10 percent polyethylene terephthalate (PET). Each ribbon measures 5mm in width and 20 feet in length for a total of 80 feet on each spool. This item is used for decoration only.
You provided three scenarios for production:
Scenario 1
Extrude PP film in China.
Extrude PET film in Taiwan.
Laminate PP film and PET film in China.
Ship rolls of laminated film to Cambodia.
Cut film into 5 mm width curling ribbon in Cambodia.
Roll onto spool, package and ship to U.S.
Scenario 2
Extrude PP and PET film in Taiwan.
Laminate PP film and PET film in Taiwan.
Ship rolls of laminated film to Cambodia.
Cut film into 5 mm width curling ribbon in Cambodia.
Roll onto spool, package and ship to U.S.
Scenario 3
Extrude PP film in China.
Extrude PET film in Taiwan.
Laminate PP film and PET film in Cambodia.
Cut film into 5 mm width curling ribbon in Cambodia.
Roll onto spool, package and ship to U.S.
CLASSIFICATION:
The applicable subheading for the metallized curling ribbon, item number G91430, will be 5605.00.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Metallized yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal: Metal coated or metal laminated man-made filament or strip or the like, ungimped, and untwisted or with twist of less than 5 turns per meter.” The rate of duty will be 7.5 percent ad valorem.
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 CFR 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.” Since 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: HTSUS Tariff shift and/or other requirements
5605-5606 If the good is of continuous filaments, including strips, a change to those filaments, including strips, to heading 5605 through 5606 from any other heading, except from heading 5001 through 5007, 5401 through 5408, 5501 through 5502, and provided that the change is the result of an extrusion process.
If the good is of staple fibers, a change of those fibers to heading 5605 through 5606 from any other heading, except from heading 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided the change is the result of a spinning process.
The metallized strip does not contain staple fiber. Further, based on the facts provided, a change to heading 5605, HTSUS, occurs as the result of cutting the extruded laminated film in Cambodia rather than directly from the extrusion process; therefore, section 102.21(c)(2) is inapplicable.
Section 102.21(c)(3) states,
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.
The ribbon is not knit to shape; therefore, paragraph (i) is not applicable. With respect to paragraph (ii), the term “wholly assembled” is defined in Section 102.21(b)(6) as,
(6) Wholly assembled. The term “wholly assembled” when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as “wholly assembled” in a single country, territory, or insular possession.
With respect to scenarios 1 and 2, while the plastic film is combined in a single country through lamination, the film is not combined in essentially the same condition as found in the finished good as it remains plastic film until it is exported and cut into textile strip in Cambodia. Therefore, Section 102.21(c)(3) is inapplicable to scenarios 1 and 2. However, in scenario 3, the ribbon is considered wholly assembled in a single country as the plastic film is both laminated and cut to form the metallized strip in a single country; that is, Cambodia.
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.” In the case of scenarios 1 and 2, the most important assembly or manufacturing occurs at the time the PP and PET film are laminated. In scenario 1, China is the country in which the most important assembly or manufacturing occurs. In scenario 2, Taiwan is the country in which the most important assembly or manufacturing occurs.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 5605.00.1000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 5605.00.1000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of Customs and you should resubmit for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by Customs.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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, contact National Import Specialist Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division