CLA-2-54:RR:NC:N3:351 L86609
Barbara Dawley
Meeks & Sheppard
1735 Post Road
Suite 4
Fairfield, CT 06824
RE: Classification and country of origin determination for synthetic filament yarn imported from Canada; 19 CFR 102.21(c)(2); tariff shift
Dear Ms. Dawley:
This is in reply to your letter dated July 25, 2005, on behalf of your client, Cansew, Inc. (Cansew) requesting a classification and country of origin determination for polyester yarn that will be imported into the United States. In a subsequent telephone conversation, you also asked that the country of origin be ruled on.
FACTS:
The subject merchandise consists of polyester yarn that will be further processed in Canada from U.S.-made yarn that Cansew purchases from a company in South Carolina. You state that the U.S.-made yarn is a 200 denier 27 filament single multifilament (200/27/1) textured polyester yarn that is produced from fiber that is extruded, plied, twisted (“S” twist), and prepared in the U.S. for dying and finishing in Canada. In addition, you explained on the phone that while the yarn is still in the partially oriented state, it is texturized by being stretched under heat; under magnification, the filaments appear crimped.
The manufacturing operations performed in Canada are as follows: after importation into Canada, Cansew will dye the yarn and apply a sewing lubricant to it during the final (“Z” twist) winding process. Cansew will then export the finished yarn to the U.S. on reels weighing less than 1000 grams.
Because it is a singles yarn, it does not meet the tariff definition of sewing thread, found in Note 5 to Section XI, Harmonized Tariff Schedule of the United States (HTS). For the same reason, it cannot be considered put up for retail sale as that term is defined in Section XI, Note 4, HTS.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the synthetic filament yarn will be 5402.33.3000,HTS, which provides for synthetic filament yarn (other than sewing thread), not put up for retail sale, . . . textured yarn, of polyesters, single yarn. The rate of duty will be 8.8 percent ad valorem.
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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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
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 yarn is extruded as filaments in a single country, that is, the United States, as per the terms of the tariff shift requirement, country of origin is conferred in the U.S.
If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the U.S.
HOLDING:
The yarn is classified in subheading 5402.33.3000, HTS. The country of origin of the yarn is the United States.
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