CLA-2 RR:TC:TE 960802 jb
Susan D. Klingbeil
Ikea Holding US, Inc
496 West Germantown Pike
Plymouth Meeting, PA 19462
RE: Country of origin determination for nonwoven iron on hem
material; 19 CFR 102.21(c)(2); tariff shift; 12.130(c)
Dear Ms. Klingbeil:
This is in reply to your letter dated May 19, 1997,
requesting a country of origin determination for what is referred
to as "631 485 00 SY iron on hem" which will be imported into the
United States. A sample was submitted to this office for
examination.
FACTS:
The subject merchandise consists of a nonwoven iron on strip
material composed of 100 percent polyamide man-made staple
fibers. The subject merchandise, a thermo-active material,
measures approximately 1-1/4 inches wide and is 32 feet 8 inches
long. The manufacturing operations are as follows:
United States
material is formed and shipped in rolls measuring 100 meters
in length and 100 centimeter widths to the Netherlands
Netherlands
rolls are cut to narrower widths and shorter lengths as per
the description above, and then repackaged for return
shipment to the United States
ISSUE:
1. What is the classification of the subject merchandise?
2. What is the country of origin of the subject merchandise?
LAW AND ANALYSIS:
Classification
Classification of goods under the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA) is governed by the
General Rules of Interpretation (GRI's). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes. Merchandise
that cannot be classified in accordance with GRI 1 is to be
classified in accordance with subsequent GRI's taken in order.
Heading 5603, HTSUS, provides for, among other things,
nonwovens, whether or not impregnated, coated, covered or
laminated. Accordingly, the subject nonwoven iron on strip
material is properly classified in the appropriate provision in
this heading, that is, subheading 5603.91.0090, HTSUS.
Country of Origin
On December 8, 1994, the President signed into law the
Uruguay Round Agreements Act. Section 334 of that Act (codified
at 19 U.S.C. 3592) provides new rules of origin for textiles and
apparel entered, or withdrawn from warehouse, for consumption, on
and 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 shall
be 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." 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 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:"
5602-5603 A change to subheading 5602 through 5603
from any heading
outside that group, provided that the change is
the result of a fabric-making process.
The subject merchandise is classifiable in subheading
5603.91.0090, HTSUS, which provides for nonwovens, whether or not
impregnated, coated, covered or laminated: other: weighing not
more than 25 g/mý: other. As the subject merchandise is formed
by a fabric-making process, the country of origin of the
merchandise is the country where that processing occurs, that is
the United States.
However, there is an exception to products from the United
States that are sent abroad for processing. Section 12.130(c),
Customs Regulations, provides that any product of the United
States which is returned after having been advanced in value or
improved in condition abroad, or
assembled abroad, shall be a foreign article. The subject
article is significantly advanced in value and improved in
condition in the Netherlands once the process of cutting is
performed on the rolls. It is the cutting of the material to the
appropriate width and length which dedicates these articles to
their specific use.
Section 12.130 which remains in effect was originally
intended to be used to determine the country of origin of
textiles and textile products for quota/visa requirement. In
T.D. 90-17, issued February 23, 1990, Customs announced a change
in practice and position. This change resulted in Customs using
Section 12.130 for quota, duty and marking purposes when making
country of origin determinations for textile goods. Therefore,
in accordance with T.D. 90-17 and Section 12.130(c), the country
of origin of the subject merchandise is the Netherlands for
quota, duty and marking purposes.
HOLDING:
The subject merchandise, referenced style "631 485 00 SY
iron on hem", is classified in
subheading 5603.91.0090, HTSUS, which provides for nonwovens,
whether or not impregnated, coated, covered or laminated: other:
weighing not more than 25 g/mý: other. The applicable rate of
duty is 5 percent ad valorem and the quota category is 223.
The country of origin of the subject merchandise is the
Netherlands.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent renegotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report on Current Import Quotas (Restraint Levels), an internal
issuance of the U.S. Customs Service, which is available for
inspection at your local Customs office.
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 importing the merchandise to determine the current status of
any import restraints or requirements.
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 section 19 CFR
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, 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. In the event there is a change in the facts
previously furnished, this may affect the determination of
country of origin. Accordingly, if there is any change in the
facts submitted to Customs, it is recommended that a new ruling
request be submitted in accordance with 19 CFR 177.2.
Sincerely,
John Durant, Director
Commercial Rulings Division