OT:RR:NC:N3:351
Ms. Martha Long
J.Crew
3 Clifford Way
Arden, NC 28704
RE: Classification and country of origin determination for a bag charm; 19 CFR 102.21(c)(2); tariff shift
Dear Ms. Long:
In your letter dated April 1, 2025, you requested a tariff classification and country of origin ruling. A sample
of the product was provided to this office and will be returned to you as requested.
Style NV977, described as a “Bag Charm,” is a dangle knotted rope charm designed to hang on a handbag.
The charm is composed of 100 percent polyester filament fiber sheathed with a single braided 100 percent
polyester filament yarn. The rope is threaded through a zinc spring ring, knotted, twisted, and knotted again.
Each end of the rope is finished with a zinc alloy cap. You state the braided rope is sewn inside the twist to
prevent unraveling. The completed charm measures 7 1/8 inches in length by 1 ¼ inches in width.
You state the manufacturing operations for the charm are as follows:
China:
100 percent polyester filament fiber is extruded, braided, sheathed, dyed, and shipped to the
Philippines in a reel.
100 polyester staple thread is produced and shipped to the Philippines in a cone.
Vietnam:
Zinc alloy spring ring and caps are produced and shipped to the Philippines.
Philippines:
Cut and wrap the ends of each rope.
Twist, sew, and knot the rope.
Glue the zinc alloy caps to the end of each rope.
Attach the zinc spring ring to the rope.
Completed charm is packaged and shipped to the United States.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the bag charm will be 5609.00.3000, Harmonized Tariff Schedule of the
United States (HTSUS), which provides for “Articles of yarn, strip or the like of heading 5404 or 5405,
twine, cordage, rope or cables, not elsewhere specified or included: Of man-made fiber. The general rate of
duty will be 4.5 percent.
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 World Wide Web at https://hts.usitc.gov/current.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
Section 334 of the Uruguay Round Agreements Act (“URAA”) (codified at 19 U.S.C. 3592), enacted on
December 8, 1994, provides the rules of origin for textiles and apparel products for purposes of the customs
laws and the administration of quantitative restrictions, unless otherwise provided by the statute, entered, or
withdrawn from warehouse, for consumption on or after July 1, 1996. Section 3592 has been described as
Congress’s expression of substantial transformation as it relates to textile and apparel products. Section
102.21 of the Code of Federal Regulations (19 CFR 102.21), implements the URAA. 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. See 19 CFR 102.21(c).
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:
HTSUS Tariff shift and/or other requirements
5609 If of continuous filaments, including strips, the country of origin of a good
classifiable under heading 5609 is the country, territory, or insular possession
in which those filaments, including strips were extruded.
As the polyester filament rope is extruded in a single country, that is, China, as per the terms of the tariff shift
requirement, country of origin is conferred in China.
HOLDING:
The applicable subheading for the rope charm will be 5609.00.3000, HTSUS, and the country of origin is
China.
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem
rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in
addition to subheading 5609.00.3000, HTSUS, and 9903.88.03 listed above.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong
and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other
countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must
report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.63, in addition to
subheading 5609.00.3000, HTSUS, listed above.
Pursuant to U.S. Note 20(f) to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 5609.00.3000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad
valorem rate of duty under 9903.88.03, HTSUS. At the time of importation, you must report the Chapter
99 subheading, i.e., 9903.88.03, in addition to subheading 5609.00.3000, HTSUS, listed above.
The HTSUSA 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, including
information on exclusions and their effective dates, 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
HTSUSA and the accompanying duty rates are provided on the World Wide Web at
https://hts.usitc.gov/current.
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.
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 the Customs and Border Protection
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, please contact
National Import Specialist Kristine Dodge at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division