CLA 2-OT:RR:NC:TA:352
Mr. Richard Tinelli
Mastercargo Inc.
161-15 Rockaway Boulevard
Jamaica, NY 11434
RE: Classification and country of origin determination for two embroidered fabrics; 19 CFR 102.21(c)(2); tariff shift
Dear Mr. Tinelli:
This is in reply to your letter dated October17, 2007, on behalf of your client Maharam Fabric Corporation, requesting a classification and country of origin determination for two embroidered fabrics which will be imported into the United States.
FACTS:
The subject merchandise consists of two embroidered fabric. The first, designated as style “Small Vineyard”, is an embroidered fabric consisting of a woven ground fabric which has been embroidered with polyester embroidery yarns. The ground fabric is a dobby woven fabric composed of 96% wool and 4% nylon. This fabric has been felted and is characterized by a dense fibrous surface on both sides of the ground fabric. The fabric has been embroidered with polyester yarns that form an intricate pattern featuring circles and arcs of circles. The ground fabric weighs approximately 399.5 g/m2, while the finished embroidered fabric weighs approximately 410.6 g/m2. The ground fabric has been subjected to abrasion resistance testing and has shown no appreciable wear after 45,000 cycles using the Martindale testing method. This testing result is consistent with the standard for medium duty upholstery use. The finished product will be imported into the United States in 140 centimeter widths. Your correspondence indicates that this item will be marketed as an upholstery fabric.
Style “Garden Double” is an embroidered fabric which is formed by using the same ground fabric as described above for style ”Small Vineyard”. A second layer of the same fabric is stitched to the ground fabric and the upper layer of fabric is cut creating an appliqué which features a floral motif. The ground fabric and the cut appliqué are in contrasting colors and embroidery stitches both hold the cut fabric in place and add accent to the design. The ground fabric weighs 399.5 g/m2, while the finished embroidered fabric including the ground fabric, the embroidery thread and the appliquéd fabric pieces which have been cut from the upper layer of fabric weighs approximately 578 g/m2. This product will be imported in 145 centimeter widths. Your correspondence indicates that this product will be marketed as an upholstery fabric.
The manufacturing operations for the embroidered fabric designated as style “Small Vineyard” are as follows:
The wool fiber was produced in Australia. After harvesting, the wool was combined the nylon fiber produced in Australia.
The blended fiber is shipped to Great Britain where it was spun into yarn and then woven into a fabric. The fabric is finished in Great Britain.
The ground Fabric is shipped to Germany where it is embroidered with 100% polyester embroidery thread that was produced in Italy.
The manufacturing operations for the embroidered fabric designated as style “Garden Double” are as follows:
1, The wool fiber was produced in Australia. After harvesting the wool was combined the nylon fiber produced in Australia.
The blended fiber is shipped to Great Britain where it was spun into yarn and then woven into a fabric. The fabric is finished in Great Britain.
The ground fabric is shipped to Germany where it is doubled and embroidered with 100% polyester embroidery thread that was produced in Italy. The top fabric is then cut out forming the appliquéd final product.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the two embroidered fabric designated as styles “Small Vineyard “ and “Garden Double” will be 5810.991000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for embroidery in the piece, in strips or in motifs, other embroidery, of other textile materials, of wool or fine animal hair. The duty rate for this provision is governed by additional U.S. Note 4 to Chapter 58 which provides that the rate of duty is 7.4 percent ad valorem but in the case of embroidery in the piece not less than the rate which would apply to the fabric if not embroidered. Since the base fabric without the embroidery is classifiable in subheading 5111.19.1000, HTSUS, which provides a rate of duty of 7 percent ad valorem, the rate of duty for the embroidered fabric will be 7.4 percent 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
5810.91-5810.99 For embroidered fabric, the country of origin is the country, territory or insular possession in which the fabric was produced by a fabric making process.
As the two embroidered fabrics were produced by a fabric making process in a single country, that is, Great Britain, as per the terms of the requirements set forth in Section 102.21 paragraph (e) of the Customs Regulations, country of origin is conferred in Great Britain.
HOLDING:
The country of origin of the two embroidered fabrics designated as styles “Small Vineyard” and “Garden Double” is Great Britain.
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 Alan Tytelman at 646-733-3045.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division