CLA-2-54:S:N:N6:351 892788
Mr. William J. LeClair
Trans-Border Customs Services, Inc.
P.O. Box 800
Champlain, NY 12919
RE: The tariff classification and country of origin of filament yarns made in Taiwan, South Korea, Malaysia, Indonesia, Italy or the United States, and texturized in Canada.
Dear Mr. LeClair:
In your letter dated November 19, 1993, on behalf of Bermatex Inc., you requested a tariff classification ruling.
You have submitted two sample tubes of 100% polyester textured multifilament yarns, items "B" and "E", which will be exported to the United States from Canada. Both yarns measure 150 denier (167 decitex); they are not put up for retail sale, not sewing thread, and not high tenacity. Item "B" is a two-ply yarn and item "E" is a high twist singles "crepe" yarn. Bermatex, a Canadian texturizing company, obtains untextured, continuous, extruded multifilament yarns made in Taiwan, South Korea, Malaysia, Indonesia, Italy or the United States, and texturizes, twists and plies them in Canada.
The country of origin of the subject yarns, except for those made from U.S.-made raw material, is the country where the original yarns were produced: Taiwan, South Korea, Malaysia, Indonesia or Italy.
The yarns produced in the United States and texturized, twisted and plied in Canada, will be considered products of Canada, and will not be entitled to the partial duty exemption under subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTS).
The applicable subheading for sample "B" will be 5402.33.6000, HTS, which provides for synthetic filament yarn ..., textured yarn, 2
of polyesters, multiple (folded) or cabled yarn. The duty rate will be 9.1 percent ad valorem.
Sample "E" will be classifiable under the provision for synthetic filament yarn, ..., textured yarn, of polyesters, single yarn, in subheading 5402.33.3000, HTS. The rate of duty will be 10 percent ad valorem.
The goods, if made from yarns originating in the United States, will be considered as originating in Canada. Goods classifiable under subheadings 5402.33.3000 and 5402.33.6000, HTS, which have originated in the territory of Canada, and are imported on or prior to December 31, 1993, will be entitled to 5% and 4.5% rates of duty, respectively, under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations. Effective January 1, 1994, with the implementation of the North American Free Trade Agreement (NAFTA), preferential tariff treatment for goods under the FTA will be discontinued.
The yarns fall within textile category designation 600. Based upon international textile trade agreements, products of Taiwan, South Korea, Malaysia and Indonesia are subject to quota and the requirement of a visa.
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. 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.
This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport