CLA 2-RR:NC:N3:351 M80323
Alan Fellingham
Shibani In Wear
35-37 Royal Road
Phoenix
Mauritius
RE: African Growth and Opportunity Act; classification and country of origin determination for air-covered yarns; 19 CFR 102.21(c)(2) and (c)(3)
Dear Mr. Fellingham:
This is in reply to your letter dated Feb. 3, 2006, requesting classification and country of origin determinations for air-covered yarns that will be imported into the United States. You also sent samples and a further explanation in a letter dated Feb. 28.
FACTS:
The subject merchandise consists of air-covered yarns.
The manufacturing operations for the yarns are as follows: in Mauritius, an air-covering machine is fed a spandex filament (to serve as the core yarn) that has a decitex of 22 or 17, and covering filament yarns that will be either nylon, polyester, or polypropylene. All of these component yarns are imported from other countries, which you have not specified. The covering yarns will have been texturized by a false-twist process and will have decitex ratings between 20 and 60. In each case, it appears from the figures you have supplied that the covering yarn predominates by weight over the spandex. The finished yarns will be wound on spools for commercial use.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the yarn made with nylon covering yarns will be 5402.31.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for synthetic filament yarn, not put up for retail sale, textured yarn, of nylon or other polyamides, measuring per single yarn not more than 500 decitex, multiple (folded) or cabled yarn. The general duty rate will be 8% ad valorem.
The applicable subheading for the yarn made with polyester covering yarns will be 5402.33.6000, HTSUS, which provides for synthetic filament yarn, not put up for retail sale, textured yarn, of polyesters, multiple (folded) or cabled yarn. The duty rate will be 8% ad valorem.
The applicable subheading for the yarn made with polypropylene covering yarns will be 5402.39.6010, HTSUS, which provides for synthetic filament yarn, not put up for retail sale, textured yarn, other, multiple (folded) or cabled yarn of polypropylene. The general duty rate will be 8% ad valorem.
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 http://www.usitc.gov/tata/hts/.
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, “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
5401-5406 A change to heading 5401 through 5406 from any other heading, provided that the change is the result of an extrusion process.
Section 102.21(e) states that if both the core yarn (spandex) and the covering yarns have been extruded in a single country, that country would be the country of origin of the yarn. If, however, the component yarns are produced in different countries, Section 102.21(c)(2) is inapplicable.
Section 102.21(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 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.
As the subject merchandise is not knit to shape and was, in this scenario, assembled in a single country (from component yarns of different countries) Section 102.21(c)(3) applies and Mauritius is the country of origin.
HOLDING:
The country of origin of the air-covered yarns is Mauritius when the component yarns are from different source countries. However, when both the core and covering yarns are from the same country, that country would be the country of origin.
According to Section 10.212, Customs Regulations, for purposes of the African Growth and Opportunity Act, “‘originating’ means having the country of origin determined by application of the provisions of §102.21” (19 C.F.R. 102.21), which we have done above. Based on that determination, where the country of origin of the yarns has been determined to be Mauritius (that is, when the component yarns are from different source countries), the air-covered yarns will be considered originating for purposes of the AGOA.
Subheadings 5402.31.6000, 5402.33.6000, and 5402.39.6010, HTSUS, fall within textile category designation 600. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at www.otexa.ita.doc.gov.
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