CLA 2-RR:NC:N3:351 K86011
Nancy deVries
Senior Supervisor
Spinrite, Inc.
320 Livingstone Ave. S.
Listowel, Ontario N4W 3H3
Canada
RE: Classification and country of origin determination for chenille yarn; 19 CFR 102.21(c)(2); tariff shift
Dear Ms. deVries:
This is in reply to your letter dated May 2, 2004, requesting a classification and country of origin determination for chenille yarn which will be imported into the United States.
FACTS:
The subject merchandise, Bernat Velour, product no. 161061, consists of chenille yarn. It is manufactured by twisting together two yarns and trapping short tufts of yarn, creating the chenille effect.
The manufacturing operations for the chenille yarn are described as follows: 100% acrylic fiber is manufactured in Germany and exported to Romania where it is ring spun and then wound on cones. The cones are exported to Canada where the chenille yarn is reeled, dyed, wound into balls, and packaged for retail sale. We take this to mean that the staple fibers are formed in Germany and spun and manufactured into the chenille yarn in Romania; our ruling will be based on this interpretation.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the chenille yarn Bernat Velour will be 5606.00.0090, Harmonized Tariff Schedule of the United States Annotated (HTS), which provides for chenille yarn. The rate of duty will be eight percent ad valorem.
Subheading 5606.00.0090 falls within textile category designation 201. 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.
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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 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
5605 – 5606 If the good is of staple fibers, a change of those fibers to heading 5605 through 5606 from any other heading, except from heading 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided that the change is a result of the spinning process.
As the acrylic staple fibers, which would be classifiable in heading 5506, are spun in a single country, that is, Romania, as per the terms of the tariff shift requirement, country of origin is conferred in Romania.
HOLDING:
The country of origin of the chenille yarn Bernat Velour is Romania. Based upon international textile trade agreements products of Romania that are classified in subheading 5606.00.0090, HTS, are subject to the requirement of a visa.
The holding set forth above applies only to our interpretation, as stated above, of 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