CLA 2-RR:NC:N3:351 L88076
Nancy deVries
Spinrite, Inc.
320 Livingstone Ave. S.
Litowel, Ontario N4W 3H3
Canada
RE: Classification and country of origin determination for yarns; 19 CFR 102.21(c)(2); tariff shift
Dear Ms. deVries:
This is in reply to your letter dated Oct. 4, 2005, requesting a classification and country of origin determination for yarns that will be imported into the United States.
FACTS:
The subject merchandise consists of two yarns, Patons Lacette, Product No. 243030, and Bernat Cool Crochet, No. 161074.
Lacette is described as 39% nylon filament, 36% acrylic staple, and 25% mohair (Angora), and it is manufactured entirely in China. We note that the nylon filament predominates over either the acrylic or mohair. Each ball weighs 50 grams. The yarn is considered “put up for retail sale,” as per Note 4 to Section XI, Harmonized Tariff Schedule of the United States Annotated (HTS).
Cool Crochet is a knit yarn described as 70% combed cotton and 30% nylon filament. The fibers are said to originate in China.
The manufacturing operations for Cool Crochet are as follows: The cotton is spun in China and sent with the nylon to Taiwan. There, the cotton and nylon are twisted together and knit on miniature knitting machines into the finished yarn, dyed, and balled.
ISSUE:
What are the classification and country of origin of the subject yarns?
CLASSIFICATION:
The applicable subheading for Lacette will be 5406.10.0090, HTS, which provides for man-made filament yarn (other than sewing thread), put up for retail sale: synthetic filament yarn, other. The general rate of duty will be 7.5 percent ad valorem.
The applicable subheading for Cool Crochet will be 5207.90.0000, HTS, which provides for cotton yarn (other than sewing thread) put up for retail sale, other. The rate of duty will be five 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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, "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." The country of origin of Lacette is China. However, as Cool Crochet 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, "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, "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
5204-5207 A change to heading 5204 through 5207 from any heading outside that group, provided that the change is the result of a spinning process.
As Cool Crochet is spun in a single country, that is, China, as per the terms of the tariff shift requirement, country of origin is conferred in China.
HOLDING:
The country of origin of both yarns is China.
Both yarns fall within textile category designation 200. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at www.otexa.ita.doc.gov.
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