OT:RR:NC:N2:349
Mr. Adrian Bächi
Bächi-Cord AG
Herrengasse 19
Oberneunforn 8526
Switzerland
RE: Classification and country of origin determination for a textile covered rubber yarn; 19 CFR
102.21(c)(3); wholly assembled
Dear Mr. Bächi:
This is in reply to your letter dated August 27, 2025, requesting a classification and country of origin
determination for a textile covered rubber yarn which will be imported into the United States.
FACTS:
The subject yarn, Item No. 606.130.21, described as “BC-Spiraltwist No. 1300 food twine, white,” consists
of polyester filament yarn wound spirally, once in the Z direction and once in the S direction (double
covered), around a core of three, untwisted, parallel rubber thread filaments. The gimped yarn is used in the
food industry for binding poultry during processing and packing.
The manufacturing operations for the yarn are as follows:
Turkey
Natural rubber thread (heading 4007) is produced.
Polyester filament yarn (heading 5402) is extruded and textured.
Rubber thread and polyester filament yarn are exported to Switzerland.
Switzerland
Polyester filament yarn (heading 5402) is gimped around the rubber thread (heading 4007).
The assembled yarn is rewound onto spools and packaged for export to the United States.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the yarn will be 5604.10.0000, Harmonized Tariff Schedule of the United
States (HTSUS), which provides for “Rubber thread and cord, textile covered; textile yarn, and strip and the
like of heading 5404 or 5405, impregnated, coated, covered or sheathed with rubber or plastics. The general
rate of duty will be 6.3 percent ad valorem.
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withdrawn from warehouse, for consumption on or after July 1, 1996.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
5604 (1) If the textile component is of continuous filaments, including strips, a
change of those filaments, including strips, to heading 5604 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.
(2) If the textile component is of staple fibers, a change of those fibers to
heading 5604 from any other heading, except from heading 5004 through
5006, 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508
through 5511, and provided that the change is the result of a spinning
process.
Since the polyester filament yarn is 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.
Paragraph (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 fabrics of chapter 59 and goods of headings 5609, 5807, 5811, 6213, 6214, 6301
through 6306, and 6308, and subheadings 6307.10, 6307.90, 9404.90 and 9619.00.31-33, 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 wholly assembled in a single country, Section 102.21(c)(3) applies. The
country of origin of the gimped yarn is the country in which the rubber thread and polyester filament yarn are
assembled, that is, Switzerland.
HOLDING:
The yarn, Item No. 606.130.21, is classified under subheading 5604.10.0000, HTSUS. The country of origin
of the yarn is Switzerland.
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. At this time, products of Switzerland will
be subject to an additional ad valorem rate of duty of 39 percent. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.02.58, in addition to subheading
5604.10.0000, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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/.
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 Kimberly Wachtel at [email protected].
Sincerely,
(for)
Denise Faingar
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division