CLA 2-RR:NC:N3:351 M83860
Vincent Diaz
Atlantic Thread & Supply Co., Inc.
8515 Kelso Drive
Baltimore, MD 21221-3140
RE: Classification and country of origin determination for aramid yarns; 19 CFR 102.21(c)(2); tariff shift
Dear Mr. Diaz:
This is in reply to your letter dated May 19, 2006, and a telephone conversation between you and National Import Specialist Mitchel Bayer requesting a classification and country of origin determination for aramid yarns that will be imported into the United States.
FACTS:
The subject merchandise consists of staple fiber aramid yarns.
The manufacturing operations for the yarns are as follows: U.S.-manufactured continuous filaments are shipped to yarn processors in either Italy or France where the filaments are processed into staple fibers that are spun into staple fiber yarns using a modified worsted process. You import the staple fiber yarns and further process them into sewing thread by dyeing, dressing, finishing, winding, and packaging. You have stated that the yarns will be imported on spools weighing more than one kilogram.
ISSUES:
What are the classification, country of origin, and proper marking of the subject merchandise?
CLASSIFICATION:
By application of Note 12 to Section XI, Harmonized Tariff Schedule of the United States (HTSUS), aramids are polyamides; further, Note 1(a) to Chapter 54, HTSUS, states that polyamides are considered to be synthetic fibers for tariff purposes. According to Note 4 to Section XI, HTSUS, the yarns as imported are not considered put up for retail sale. You have stated that these are multiple yarns.
The applicable subheading for the staple fiber aramid yarns will be 5509.12.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for yarn (other than sewing thread) of synthetic staple fibers, not put up for retail sale, containing 85 percent or more by weight of staple fibers of nylon or other polyamides, multiple (folded) or cabled yarn. The general rate of duty will be 10.6% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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." 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, "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
5508-5511 A change to heading 5508 through 5511 from any heading outside that group, provided that the change is a result of a spinning process.
Section 102.21(e) states that the change must be from any heading outside of headings 5508 through 5511 and be the result of a spinning process. As the yarns of heading 5509 are spun in Italy or France from staple fibers that would be classified in heading 5503, HTSUS, they meet the tariff shift requirements of Section 102.21(c)(2) and country of origin is conferred in either Italy or France.
MARKING:
You ask if the yarns need to be marked with country of origin when your company imports them into the U.S. for processing at your facility. 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.
Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. In this case, your company is the ultimate purchaser of the aramid yarns.
An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs is satisfied that the article will remain in its container until it reaches your company, the ultimate purchaser, and if the country of origin of the aramid yarns can be determined by viewing the container in which they are packaged, the individual spools of yarn would be excepted from marking under this provision.
In addition, you also ask, in light of the processing your company performs at your facility in the U.S., if you can mark the finished yarns to indicate the U.S. processing. A phrase such as "Made in is Italy [or France, as the case may be] and Further Processed in the U.S." indicates that the country of origin of the finished yarns is Italy (or France), which is consistent with the origin rules for yarns under Section 102.21, Customs Regulations. Marking the yarns as "Made in Italy [or France], Further Processed in the U.S." will satisfy the marking requirements of 19 U.S.C. 1304 and would be an acceptable country of origin marking for the finished yarns
It should also be noted that textile fiber products imported into the United States must be labeled in accordance with the Textile Fiber Products Identification Act (15 U.S.C. 70 through 70k) and the rules promulgated thereunder by the Federal Trade Commission. These rules concern required information such as country of origin, fiber content and the placement of that information. Therefore, we suggest that you contact the Federal Trade Commission, Textile Program, Division of Enforcement, Bureau of Consumer Protection, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to the yarns.
HOLDING:
The country of origin of the aramid yarns is either Italy or France.
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