CLA 2-RR:NC:N3:351 K85902
Joanne Burke
Wilson Int’l, Inc.
One Heritage Place
Southgate, MI 48195
RE: Classification and country of origin determination for yarn kits; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 102.21(d); sets
Dear Ms. Burke:
This is in reply to your letter dated May 3, 2004, requesting a country of origin determination for yarn kits which will be imported into the United States. The classifications of the yarn kits, as well as a determination of their eligibility under the NAFTA, were originally issued in our ruling K81242, issued Dec. 16, 2003. In that ruling we stated that we were unable to determine the country of origin of the kits without certain information; you have now provided that information.
FACTS:
The subject merchandise consists of four kits for knitting scarves. The following description of each kit is taken from K81242. Each is labeled “Cool Scarf Kit” and contains three balls of two different yarns.
Kit 421001contains two 50-gram balls of Bernat Boa, a 100% polyester yarn that you state is made in Taiwan, and one 140-gram ball of Bernat Soft Boucle, 98% acrylic, 2% polyester.
Kit 421002 contains two 50-gram balls of Bernat Boa, and one 113-gram ball of Bernat So Soft, a 100% acrylic yarn.
Kit 421003 contains two 50-gram balls of Bernat Eyelash, a 100% nylon yarn that you state is made in Turkey, and one 140-gram ball of Bernat Soft Boucle, 98% acrylic, 2% polyester.
Kit 421004 contains two 50-gram balls of Bernat Eyelash and one 113-gram ball of Bernat So Soft, a 100% acrylic yarn.
The acrylic yarns, Soft Boucle and So Soft, are made from acrylic fibers that you now state are imported from the United Kingdom and spun into yarn in Canada.
In your letter of May 3, you state the manufacturing operations for each yarn, as follows:
Bernat Boa: Made in Taiwan. [We assume this means extruded in Taiwan.]
Bernat Soft Boucle and Bernat So Soft: In the United Kingdom, the fiber is extruded, dyed and stretched to break it into staple fibers. It arrives to Spinrite (Canada) as blended tops, which are then gilled, twisted, spun, balled and packaged for retail sale.
Bernat Eyelash: Made in Turkey. [In a telephone conversation, you told us that this means extruded in Turkey.]
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
In ruling K81242 the kits were classified according to the component which imparts their respective essential character according to Rule 3(b) of the General Rules of Interpretation (GRIs), Harmonized Tariff Schedule of the United States (HTS). In each case, a chenille yarn imparts the respective essential character, so each kit was classified in subheading 5606.00.0090, HTS, which provides for chenille yarn.
However, for the purposes of this ruling, the classification of each individual yarn is required to determine the proper country of origin marking for each set. In K81242, the proper HTS subheadings were determined to be:
Boa and Eyelash: 5606.00.0090, which provides for chenille yarn;
Soft Boucle and So Soft: 5406.10.0020, which provides for man-made filament yarn (other than sewing thread), put up for retail sale, synthetic filament yarn, of acrylic.
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.
Additionally, Section 102.21(d) addresses the treatment of sets for country of origin purposes. Section 102.21(d) provides the following:
Where a good classifiable in the HTSUS as a set includes one or more components that are textile or apparel products and a single country of origin for all of the components of the set cannot be determined under paragraph (c) of this section, the country of origin of each component of the set that is a textile or apparel product shall be determined separately under paragraph (c) of this section.
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 Bernat Boa is wholly produced in Taiwan and Bernat Eyelash is wholly produced in Turkey, paragraph (c)(1) of Section 102.21 is applicable to those yarns. However, as neither Bernat Soft Boucle nor Bernat So Soft is wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable to them.
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.
Accordingly, as the foreign materials incorporated in Soft Boucle and So Soft are formed in a single country, territory, or insular possession, Section 102.21(c)(2) is applicable. Thus, as the filaments are extruded in a single country, that is, the United Kingdom, as per the terms of the tariff shift requirement, country of origin for Soft Boucle and So Soft is conferred in the United Kingdom.
MARKING:
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.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
Although the yarn kits are classifiable as sets, each component of each set retains its own country of origin. Thus the country of origin for Boa and Eyelash remains Taiwan and Turkey, respectively, and for Soft Boucle and So Soft, the U.K. Your letter states that each of the yarns will be packaged in the sets for retail sale to the U.S. consumer in Canada. Please note that when the product is imported as a set, it must be marked so that the ultimate purchaser will be readily informed of the country of origin of each yarn upon casual examination of the unopened package. As stated above, such marking must be legible, permanent, and in a conspicuous place.
HOLDING:
The country of origin of Eyelash is Turkey. The country of origin of Soft Boucle and So Soft is the United Kingdom.
The country of origin of Bernat Boa is Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa.
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.
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