CLA-2 RR:TC:TE 959339 GGD
Ms. Janan White
Southern Overseas International Expediters
Post Office Box 20189
Charleston, South Carolina 29413-0189
RE: Country of Origin and Classification Determinations for
Cotton Regenerated Fiber Waste and for Cotton/Acrylic
Regenerated Fiber Waste; 19 CFR 102.21(e);
Dear Ms. White:
This letter is in response to your inquiry of June 4, 1996,
concerning the country of origin and classification under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), of regenerated fiber waste of 100 percent cotton, and
regenerated fiber waste of both cotton and acrylic, that will be
imported into the United States on or after July 1, 1996. A
sample of each of the two types of fiber waste was submitted with
the inquiry.
FACTS:
Each of the samples appears to be a collection of fibers
that are twisted, tangled, and of varied lengths. The cotton
fibers are produced by garnetting cotton rags of unspecified
origin. (A garnetting process breaks up material and restores it
to its fibrous condition for reuse.) The acrylic fibers are said
to be virgin (nonwaste) fibers that are extruded in Italy, then
blended with the garnetted cotton. Each of the samples includes
some remnants of yarn not fully broken up by the garnetting -2-
process. Once produced, neither the cotton fibers nor the
acrylic fibers are further worked (i.e., they are not carded,
combed, or otherwise processed for spinning).
ISSUES:
1) What is the classification of each type of regenerated
fiber waste?
2) What is the country of origin of each type of regenerated
fiber waste?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with
the General Rules of Interpretation (GRI). Virtually all goods
are classified according to the terms of the headings of the
tariff schedule and any relative Section or Chapter Notes. In
the event that the goods cannot be classified solely on the basis
of GRI 1, and if the headings and legal notes do not otherwise
require, the remaining GRI may then be applied. The Explanatory
Notes (EN), which represent the official interpretation of the
tariff at the international level, facilitate classification by
offering guidance in understanding the scope of the headings and
GRI.
With respect to the classification issue, heading 5202,
HTSUS, provides for "Cotton waste (including yarn waste and
garnetted stock)." The EN to heading 5202 indicate that, among
other goods, the heading covers waste cotton (including yarn and
fibres) obtained from the garnetting of cotton goods (including
rags). The heading excludes, among other goods, carded or combed
cotton waste (heading 5203). The regenerated fiber waste of 100
percent cotton is classified in subheading 5202.91.0000, HTSUSA,
the provision for "Cotton waste (including yarn waste and
garnetted stock): Other: Garnetted stock." The applicable rate
of duty is 4.8 percent ad valorem.
With regard to the classification of the cotton regenerated
fiber waste that is blended with acrylic fibers, we note that
chapter 55, HTSUS, covers man-made staple fibers. Heading 5503,
HTSUS, provides for "Synthetic staple fibers, not carded, combed
or otherwise processed for spinning," and the heading includes
acrylic fibers. In pertinent part, note 2(A) to Section XI,
HTSUS, states that: -3-
Goods classifiable in chapters 50 to 55 or in heading 5809
or 5902 and of a mixture of two or more textile materials
are to be classified as if consisting wholly of that one
textile material which predominates by weight over each
other single textile material. When no one textile material
predominates by weight, the goods are to be classified as if
consisting wholly of that one textile material which is
covered by the heading which occurs last in numerical order
among those which equally merit consideration.
In this case, if the acrylic fibers predominate by weight over
the cotton material, the goods are classified under heading 5503,
HTSUS. If neither textile material in the cotton/acrylic mixture
predominates by weight over the other, the goods are classified
as if consisting wholly of acrylic fibers, since this is the
material covered by the heading which occurs last of headings
5202 and 5503. Therefore, if the regenerated fiber waste is
composed of 50 percent or less cotton and 50 percent or more
acrylic fibers, it is classified in subheading 5503.30.0000,
HTSUSA, the provision for "Synthetic staple fibers, not carded,
combed or otherwise processed for spinning: Acrylic or
modacrylic." The applicable rate of duty is 4.8 percent ad
valorem. If, however, the cotton/acrylic mixture of regenerated
fiber waste is composed of over 50 percent cotton by weight, the
blend is classified in subheading 5202.91.0000, HTSUSA, the
provision for "Cotton waste (including yarn waste and garnetted
stock): Other: Garnetted stock." The applicable rate of duty is
4.8 percent ad valorem.
With respect to the country of origin of the merchandise, we
note that on December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act provides
new rules of origin for textiles and apparel entered, or
withdrawn from warehouse, for consumption, on or after July 1,
1996. On September 5, 1995, Customs published Section 102.21,
Customs Regulations, in the Federal Register, implementing
Section 334 (60 FR 46188). Thus, effective July 1, 1996, the
country of origin of a textile or apparel product is determined
by sequential application of the general rules set forth in
paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states that "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 origin of the cotton rags from which the
regenerated fiber waste is produced is unspecified, the -4-
merchandise cannot be found to have been wholly obtained or
produced in a single country, territory or insular possession.
Paragraph (c)(1) is therefore not applicable.
Paragraph (c)(2) states that "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
foreign material 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) 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:"
5202 ... A change to heading 5202 from any other heading
outside that group, provided that the change is the result
of garnetting. If the change to heading 5202 is not the
result of garnetting, the country of origin of the good is
the country of origin of the good prior to its becoming
waste.
5503-5504 ... A change to heading 5503 through 5504 from any
other chapter, except from Chapter 54.
As previously noted, the cotton regenerated fiber waste is
classified under heading 5202, HTSUS. The first rule above
requires that a tariff shift to heading 5202 occur. A tariff
shift to heading 5202 occurs as the result of garnetting in
Italy, from merchandise classifiable in heading(s) 6310 and/or
6309, which cover(s), among other goods, rags and worn textile
articles, respectively. Since the tariff shift occurring in
Italy meets the requirements of the rule, the country of origin
of the cotton regenerated fiber waste is Italy.
As determined above, the cotton regenerated fiber waste that
is blended with acrylic fibers is classified under either heading
5202 or heading 5503, HTSUS. If classified under heading 5202,
HTSUS, the first rule above again applies and the tariff shift
that occurs in Italy meets the rule's requirements. Thus, the
country of origin of the cotton/acrylic mixture of regenerated
fiber waste that is classified under heading 5202 is Italy. -5-
If the cotton/acrylic blend is classified under heading
5503, HTSUS, the second rule above requires that a tariff shift
to heading 5503 from any other chapter occur. In pertinent part,
the General EN to chapter 55, HTSUS, states that:
"[m]an-made staple fibres are usually manufactured by
extrusion through spinnerets (jets) having a large number of
holes (sometimes several thousand); the filaments from a
large number of spinnerets (jets) are then collected
together in the form of a tow. This tow may be stretched
and then cut into short lengths...according to the
particular man-made fibre concerned, the type of yarn to be
manufactured and the nature of any other textile fibres with
which they are to be mixed."
Heading 3906 covers "Acrylic polymers in primary forms." The
acrylic fibers of heading 5503, HTSUS, are produced by the
conversion of acrylic polymers into acrylic fibers in Italy,
through manufacturing processes similar to those described above.
Since the tariff shift to heading 5503 from chapter 39 occurs in
Italy, the requirements of the second rule above are met.
Therefore, the country of origin of the cotton/acrylic mixture of
regenerated fiber waste that is classified under heading 5503 is
Italy.
HOLDING:
The cotton regenerated fiber waste is classified in
subheading 5202.91.0000, HTSUSA, the provision for "Cotton waste
(including yarn waste and garnetted stock): Other: Garnetted
stock." The applicable rate of duty is 4.8 percent ad valorem.
If the cotton/acrylic mixture of regenerated fiber waste is
composed of 50 percent or less cotton and 50 percent or more
acrylic fibers, it is classified in subheading 5503.30.0000,
HTSUSA, the provision for "Synthetic staple fibers, not carded,
combed or otherwise processed for spinning: Acrylic or
modacrylic." The applicable rate of duty is 4.8 percent ad
valorem.
If the cotton/acrylic mixture of regenerated fiber waste is
composed of over 50 percent cotton by weight, it is classified in
subheading 5202.91.0000, HTSUSA, the provision for "Cotton waste
(including yarn waste and garnetted stock): Other: Garnetted
stock." The applicable rate of duty is 4.8 percent ad valorem. -6-
The country of origin of the cotton regenerated fiber waste
is Italy.
The country of origin of the regenerated fiber waste
composed of both cotton and acrylic fibers is Italy.
The holding set forth above applies only to the specific
factual situation and merchandise identified in the ruling
request. This position is clearly set forth in 19 CFR
177.9(b)(1), which states that each ruling letter is issued on
the assumption that all of the information furnished and
incorporated in the ruling letter, either directly, by reference,
or by implication, is accurate and complete in every material
respect.
Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 CFR
177.9(b)(1), the ruling will be subject to modification or
revocation. A change in the facts previously furnished may
affect the determination of country of origin. Thus, if there is
any change in the facts provided to Customs, it is recommended
that a new ruling request be submitted in accordance with 19 CFR
177.2.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories applicable to textile
merchandise, you should contact your local Customs office prior
to importation of this merchandise to determine the current
status of any import restraints or requirements.
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division