CLA-2-56:RR:NC:N3:351 K86313
Ms. Nancy deVries
Senior Supervisor
Spinrite, Inc.
320 Livingstone Ave. S.
Listowel, Ontario N4W 3H3
Canada
RE: Classification and country of origin determination for yarns from Italy and Taiwan; 19 CFR 102.21(c)(1) and (c)(3)
Dear Ms. deVries:
This is in reply to your letter dated May 20, 2004, requesting a classification and country of origin determination for yarns that will be imported into the United States.
FACTS:
The subject merchandise consists of three samples of yarns.
The manufacturing operations for the yarns are as follows: the first, Bernat Voo Doo, Product No. 161108, is a 92% acrylic, 8% polyamide knit yarn. Every 14” or so, there are 4” of fringe, 1” in length. The fringe is held in the loops of the yarn, creating a chenille effect, by the polyamide yarn sewn the length of the knit yarn. The acrylic originates in Turkey and the tops are spun in Italy; the completed yarn is formed in Italy.
The second sample, Bernat Carmen, Product No. 161107, is 64% nylon, 36% polyester and consists of two knit yarns twisted together. One is a chenille yarn created, apparently, by knitting two lines of yarn with yarns between, then having this cut down the center, creating two chenille yarns. One of these chenille yarns is twisted with what you call a bubble yarn, which is a knit yarn with tufted fibers inserted in the loops every inch or so. This twisted yarn is essentially a chenille yarn. It is made in Taiwan of Taiwanese materials.
The third yarn, Bernat Matrix, Product No. 166102, is a filament yarn of 62% nylon, 38% polyester. It is a knit yarn approximately 1/8” wide, with two knit edges connected every ½” by an 1/8”-wide band of stitches, creating a ladder effect. Each ball weighs 50 grams. It meets the tariff definition of “Put up for retail sale.” It, too, is made in Taiwan of Taiwanese materials.
All yarns are imported into Canada on bulk cones and balled (Voo Doo and Carmen) or wound on a tube (Matrix) in Canada.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for Voo Doo and Carmen will be 5606.00.0090, Harmonized Tariff Schedule of the United States (HTS), which provides for chenille yarn. The general rate of duty will be eight percent ad valorem.
The applicable subheading for Matrix will be 5406.10.0090, HTS, which provides for man-made filament yarn (other than sewing thread), put up for retail sale: synthetic filament yarn . . . other. The duty rate is 7.5 percent ad valorem.
Subheading 5406.10.0090, HTS, falls within textile category designation 200. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.gov. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.
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 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 both Carmen and Matrix are wholly obtained or produced in a single country, Taiwan, paragraph (c)(1) of Section 102.21 applies to them. However, as Voo Doo is not formed in a single country, paragraph (c)(1) is inapplicable to it.
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 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
5606 If the good is of staple fibers, a change of those fibers to heading 5605 through 5606 from any other heading, except from heading . . . 5508 through 5511, and provided that the change is a result of the spinning process.
The acrylic filament yarn is extruded and cut into staple fibers in Turkey, but the change to heading 5606 occurs in Italy, in all likelihood from a yarn of heading 5508 through 5511. Thus, paragraph (c)(2) is inapplicable.
Section 102.21(c)(3) states that, "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 [emphasis added].
As the subject merchandise is not knit to shape and was assembled in a single country, Italy, Section 102.21(c)(3) applies.
HOLDING:
The country of origin of the yarns Carmen and Matrix is Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa. The country of origin of the yarn Voo Doo 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 section 19 CFR 177.9(b)(1). This section states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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.
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 Mitchel Bayer at 646-733-3102.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division