CLA 2-RR:NC:N3:351 J80758
Kim Lamberton
Import Supervisor
Norman G. Jensen, Inc.
102 W. Service Road
Champlain, NY 12919
RE: Classification and country of origin determination for texturized nylon yarn; 19 CFR 102.21(c)(4)
Dear Ms. Lamberta:
This is in reply to your letter dated February 4, 2002, requesting a classification and country of origin determination for texturized nylon yarn that will be imported into the United States. You state that you recognize that the yarn does not qualify under NAFTA.
FACTS:
The subject merchandise consists of texturized nylon filament yarn. Your documentation, specifically the country of origin declaration, also mentions polyester yarn, but it appears from the information you have supplied that your request concerns the nylon yarn only.
The manufacturing operations for the yarn are as follows: partially oriented yarn (POY) of nylon is manufactured (extruded) in Great Britain. It is imported into Canada by Bermatex, Inc., of Montmagny, Quebec. Bermatex texturizes the yarn in the following manner: a false-twist machine simultaneously twists, heat-sets, and untwists the yarn to modify the continuous filament yarn to develop stretch and bulk.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the texturized nylon yarn will be 5402.31.3000, 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 . . . ; textured yarn; of nylon or other polyamides, measuring per single yarn not more than 500 decitex; single yarn.. The rate of duty will be 8.9 percent ad valorem.
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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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.
Section 102.21(e) states that if there is a change to the yarn, it must result from extrusion. Accordingly, as the texturizing does not result from extrusion, Section 102.21(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.
As the subject merchandise is neither knit, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable.
Section 102.21 (c)(4) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred.”
In the case of the subject merchandise, the extrusion of the yarn constitutes the most important assembly process. The yarn in question is extruded in Great Britain and, while it is texturized in Canada, the yarn is considered to have been wholly produced in Great Britain. Accordingly, Great Britain is the country of origin of the yarn, and it must be marked as such.
With regard to variations of, or abbreviations for, the country of origin, it has been determined that the following are acceptable markings for country of origin Great Britain: England, Gt. Britain, United Kingdom and U.K.
You ask if the phrases “Processed in Canada” or “Transformed in Canada” may be used.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the
U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
However, please note that separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. You should contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to this item, particularly the use of the phrases “Processed in Canada” and “Transformed in Canada.”
HOLDING:
The country of origin of the texturized nylon yarn is Great Britain.
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