OT:RR:NC:N3: 351
Nancy Davenport
Kayser-Roth Corporation
102 Corporate Center Boulevard Greensboro, NC 27408
RE: Country of origin determination of gimped elastomeric filament yarns from Peru; 19 CFR 102.21(c)(3)
Dear Ms. Davenport:
In your letter dated November 16, 2022, you requested a country of origin ruling Samples were provided and sent for laboratory analysis. The samples will be retained for reference purposes.
SKU# 1818SACL22-D155, described as “S-1470 Black,” and SKU# 1818SACL22-D121, described as “S-1470 White,” are gimped elastomeric filament yarns stated to be composed of 83.5 percent nylon and 16.5 percent spandex. The yarns will be used in commercial settings to produce socks.
The manufacturing steps for the gimped elastomeric filament yarns are as follows:
China
- 100 percent nylon filament yarn is extruded and spooled.
- Nylon yarn (heading 5402) is shipped to Peru.
Brazil
- 100 percent spandex filament yarn is extruded and spooled.
- Spandex yarn (heading 5402) is shipped to Peru.
Peru:
- 100 percent nylon yarn is wrapped around a 100 percent spandex core yarn to create a gimped yarn.
- The gimped yarn is packaged on a cone and exported to the United States.
ISSUES:
What is the tariff classification and country of origin of the subject merchandise?
CLASSIFICATION:
According to U.S Customs and Border Protection (“CBP”) laboratory analysis, the sample described as “S-1470 Black” is a single gimped yarn where nylon filaments are wrapped around an untwisted elastomeric filament core with a decitex of 613. The weight of the sample with support is 479.9 grams.
According to CBP laboratory analysis, the sample described as “S-1470 White,” is a single gimped yarn where nylon filaments are wrapped around an untwisted elastomeric filament core with a decitex of 592.6. The weight of the sample with support is 420.7 grams.
The applicable subheading for the gimped elastomeric filament yarns will be 5606.00.0010, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for “Gimped yarn, and strip and the like of heading 5404 or 5405, gimped (other than those of heading 5605 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale-yarn: Containing elastomeric filaments.” The rate of duty will be 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 on the World Wide Web 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 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
5605-5606 If the good is of continuous filaments, including strips, a change of those filaments, including strips to heading 5605 through 5606 from any other heading, except from heading 5001 through 5007, 5401 through 5408, and 5501 through 5502, and provided that the change is the result of an extrusion process; or
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 gimped elastomeric filament yarns do not contain staple fiber. However, since the nylon and spandex filament yarns are classified within heading 5402, HTSUS, the finished gimped yarn does not meet the terms of the tariff shift and thus 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. As the subject merchandise is not knit to shape and is wholly assembled in a single country, that is, Peru, Section 102.21(c)(3) applies.
HOLDING:
The country of origin of the gimped elastomeric filament yarns is Peru.
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 Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division