CLA-2-RR:NC:TA:351 D86184
Ms. Pamela Gruszczynski
Midwest Transatlantic Lines, Inc.
1230 West Bagley Road
Berea, OH 44017-2910
RE: Classification, country of origin determination and country of origin marking for filament yarn; 19 C.F.R. §102.21(c)(2); tariff shift
Dear Ms. Gruszczynski:
This is in reply to your letter dated December 18, 1998, requesting a classification and country of origin determination for filament yarn which will be imported into the United States.
FACTS:
The subject merchandise consists of two-ply 100% rayon thread or two-ply 100% polyester thread.
The rayon thread, from the paperwork you submitted, is stated to be 120 denier, 2 ply multifilament thread. The thread has a decitex number of 133. It is dressed, has a final “z” twist and is put up on supports in excess of 85 grams in weight. The thread is extruded in Germany and shipped to Taiwan for twisting, dying and packaging.
The polyester thread, from the paperwork you submitted, is stated to be 120 denier, 2 ply, multifilament thread. The thread has a decitex number of 133. It is dressed, has a final “z” twist and is put up on supports in excess of 85 grams in weight. The thread is extruded in Taiwan and shipped to the Philippines for twisting, dying and packaging.
ISSUE:
What are the classification, country of origin and proper marking of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the rayon thread will be 5403.41.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for artificial filament yarn (other than sewing thread), not put up for retail sale...; other yarn, multiple (folded) or cabled; of viscose rayon. The rate of duty will be 9.1 percent ad valorem.
The applicable subheading for the polyester thread will be 5402.62.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for synthetic filament yarn (other than sewing thread), not put up for retail sale...; other yarn, multiple (folded) or cabled; of polyesters. The rate of duty will be 8.3 percent ad valorem.
The polyester thread falls within textile category designation 606. 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. 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.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
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 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
5401-5406 A change to heading 5401 through 5406 from any other heading, provided that the change is the result of an extrusion process.
As the rayon thread is of heading 5402 and the polyester thread is of heading 5403, and each is extruded in a single country (Germany for the rayon thread and Taiwan for the polyester thread), as per the terms of the tariff shift requirement, country of origin is conferred in that source country.
MARKING:
Section 304 of the Tariff Act of 1930 (19 U.S.C. §1304) provides that articles of foreign origin imported into the United States must be legibly, conspicuously and permanently marked to indicated the country of origin to the ultimate purchaser in the United States.
Part 134, Customs Regulations (19 C.F.R. Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304. Section 134.33, Customs Regulations (19 C.F.R. §134.33), lists particular articles excepted from individual country of origin marking in accordance with 19 U.S.C. §1304(a)(3)(J). The outermost container in which the article ordinarily reaches the ultimate purchaser must however, be marked with the country of origin. Pursuant to 19 U.S.C. §1304(a)(3)(J) the Secretary of the Treasury is authorized to exempt by regulation any article from individual country of origin marking if the article is of a kind or class that were imported in substantial quantities during the five year period immediately preceding January 1, 1937, and were not required during such period to be marked to indicate their origin. One category of the articles of a class or kind included in the list, which is set forth at 19 C.F.R. §134.33 ("J-list”) is rope, including wire rope; cordage; cords; twines; threads; and yarns.
Because yarn is included on the J-list, it is excepted from individual country of origin marking. The ultimate purchaser of the imported yarn is the party who uses the yarn in producing embroidered or decorated products. The shipping box in which the cones of yarn are packaged is the outermost container of the yarn in which it ordinarily reaches the ultimate purchaser. Assuming that the shipping boxes are conspicuously and legibly marked with the country of origin of the yarn, the provisions of 19 C.F.R. §134.33 are satisfied.
As the country of origin of the rayon yarn is Germany, Germany is the country name to be used for product marking. As the country of origin of the polyester yarn is Taiwan, Taiwan is the country name to be used for product marking.
HOLDING:
The country of origin of the rayon thread is the country where it is extruded - Germany. The country of origin of the polyester thread is the country where it is extruded - Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa.
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 C.F.R. §177.9(b)(1). This sections 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 C.F.R. §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 C.F.R. §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 Camille Ferraro at 212-466-5885.
Sincerely,
Robert B. Swierupski
Director
National Commodity
Specialist Division