CLA 2-OT:RR:NC:N3:351
Sunil Hassamal
Shibani In Wear
35-37 Royal Road
Phoenix
Mauritius
RE: RE: African Growth and Opportunity Act; classification and country of origin determination for air-covered yarns; 19 CFR 102.21(c)(2) and (c)(3)
Dear Mr. Hassamal:
This is in reply to your letter dated Oct. 3, 2007, requesting a classification and country of origin determination for air-covered yarns which will be imported into the United States. You cite NY Ruling Letter M80323, issued to you on March 8, 2006, in which this office ruled on similar yarns.
FACTS:
The subject merchandise consists of air-covered yarns.
In your original ruling request, you described the manufacturing operations for the yarns as follows, as amended for the newer yarns: in Mauritius, an air-covering machine is fed a spandex filament (to serve as the core yarn) that has a decitex of 13, 17, or 22, and covering cotton yarns. In each case, the figures you have supplied indicate that the cotton covering yarn predominates by weight (between 91% and 96%) over the spandex (4-9%). According to the terms of Note 2(A) of Section XI, Harmonized Tariff Schedule of the United States (HTSUS), the yarns are considered to be of cotton. The finished yarns will be wound on spools for commercial use.
The spandex yarns are imported into Mauritius from Japan or the United States and the cotton yarns are imported from India, Greece, or Portugal. The cotton yarns will be 50, 60, or 70 English cotton counts (nE). These convert to 84.67, 101.60, and 118.53, respectively, in the metric count (nm). You state that the cotton yarns are of combed fibers and are compact spun.
ISSUE:
What are the classifications and country (or countries) of origin of the subject yarns?
CLASSIFICATION:
The applicable subheading for the air-covered yarns with 84.67 nm will be 5205.46.0021, which provides for Cotton yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale:
Multiple (folded) or cabled yarn, of combed fibers: Measuring per single yarn, less than 125 decitex but not less than 106.38 decitex (exceeding 80 metric
number but not exceeding 94 metric number) Ring spun: Compact. The general rate of duty will be 12% ad valorem.
The applicable subheading for the air-covered yarns with 101.60 nm will be 5205.47.0021, which provides for Cotton yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale:
Multiple (folded) or cabled yarn, of combed fibers: Measuring per single yarn, less than 106.38 decitex but not less than 83.33 decitex (exceeding 94 metric
number but not exceeding 120 metric number): Ring spun: Compact, not exceeding 102 nm. The general rate of duty will be 12% ad valorem.
The applicable subheading for the air-covered yarns with 118.53 nm will be 5205.47.0029, which provides for Cotton yarn (other than sewing thread), containing 85 percent or more by weight of cotton, not put up for retail sale:
Multiple (folded) or cabled yarn, of combed fibers: Measuring per single yarn, less than 106.38 decitex but not less than 83.33 decitex (exceeding 94 metric
number but not exceeding 120 metric number) Ring spun: other. The general rate of duty will be 12% 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.
(Please note that the spandex, when it does not exceed 7% of the weight of the finished air-covered yarn, is considered de minimis and is not part of the country of origin determination, according to Section 102.13(c). As such, the spandex yarn is to be disregarded when determining the country of origin of the finished yarns except the following yarns: 22-decitex spandex mixed with cotton of 101.60 and 118.53 nm.)
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 yarns are 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.
For the yarns with 7% or less spandex (by weight), only the cotton component is considered, as described above; as the cotton yarns are spun in a single country, that is, India, Greece, or Portugal, from cotton fibers (classifiable in headings 5201-5203) that fall outside the group (5204-5207), as per the terms of the tariff shift requirement, country of origin of these yarns is conferred in India, Greece, or Portugal, as applicable.
However, where the spandex is greater than 7% by weight, as detailed above, and thus must be considered, the finished air-covered yarns do not meet the requirements of the above rule so Section 102.21(c)(2) is inapplicable.
Section 102.21(c)(3) states,
Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section:
(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or
(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.
The yarns are not knit to shape, as per (i) above, but they are wholly assembled in a single country, Mauritius, so Section 102.21(c)(3)(ii) applies.
HOLDING:
The country of origin of the yarns with 7% or less by weight spandex is the country where the cotton yarns are spun, India, Greece, or Portugal. The country of origin of the yarns with greater than 7% spandex is the country where the air-covered yarn is assembled, Mauritius.
According to Section 10.212, Customs Regulations, for purposes of the African Growth and Opportunity Act, “‘originating’ means having the country of origin determined by application of the provisions of §102.21” (19 C.F.R. 102.21), which we have done above. Based on that, where the country of origin of the yarns has been determined to be Mauritius, the air-covered yarns will be considered originating for purposes of the AGOA.
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