CLA-2-52: RR:NC:N3:351 L86265
Jane L. Johnson
Government Relations Manager
Unifi
7201 W. Friendly Ave.
Greensboro, NC 27410
RE: U.S.-Caribbean Basin Trade Partnership Act; Yarn Wholly Formed in the United States
Dear Ms. Johnson:
This is in response to your letter dated July 8, 2005, and a subsequent telephone conversation, requesting a binding ruling on the eligibility of yarn as “wholly formed” under the United States-Caribbean Basin Trade Partnership Act (CBTPA). We assume that you are referring to that term as it appears in Harmonized Tariff Schedule of the United States (HTS) subheading 9802.00.8044 and in the various provisions of HTS chapter 98 subchapter XX.
The item is an air-covered yarn with a core of cotton (English number 80, metric number 135) with a covering of seven plies of nylon (denier 20, decitex 22). The cotton yarn is spun in the United States from U.S. raw cotton. The nylon yarn is of Israeli origin. The cotton and nylon yarns are air-entangled at your plant in North Carolina. The finished yarn is 77% cotton/23% nylon by weight.
The applicable subheading for the yarn will be 5206.45.0000, HTS, which provides for cotton yarn (other than sewing thread), containing less than 85 percent by weight of cotton, not put up for retail sale, multiple (folded) or cabled yarn, of combed fibers, exceeding 80 nm per single yarn.
For purposes of the CBTPA, section 10.222 of the Customs Regulations defines “wholly formed” as follows:
“Wholly formed,” when used with reference to yarns, means that all of the production processes, starting with the extrusion of filament, strip, film, or sheet and including slitting a film or sheet into strip or the spinning of all fibers into yarn or both and ending with a yarn or plied yarn, took place in a single country. . . .
Because the nylon yarn was manufactured in Israel, the air-covered yarn cannot be considered “wholly formed” as it is used in HTS subheading 9802.00.8044 and the various provisions of HTS chapter 98 subchapter XX.
The fact that this yarn is not “wholly formed,” however, does not necessarily preclude apparel made from these yarns from being eligible for preferential treatment under the CBTPA. There are some limited exceptions to the “wholly formed” rule. In this case, U.S. Note 3(d), subchapter II, Chapter 98, may be applicable, but its application is limited to only certain specified provisions of the CBTPA. If you wish to obtain a ruling on whether apparel made from these yarns is otherwise eligible for preferential treatment under the CBTPA, we suggest you provide a sample of the actual apparel which is involved, along with details of all production steps and where they take place.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R.177).
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