MAR-2 OT:RR:NC:N3:350
Brian Kavanaugh
Deringer Logistics Consulting Group
1 Lincoln Blvd., Suite 225
Rouses Point, NY 12979
RE: THE COUNTRY OF ORIGIN MARKING OF WOVEN TEXTILE RIBBONS; 19 CFR 102.21(c)(4); MANUFACTURING PROCESS
Dear Mr. Kavanaugh:
This is in response to your letter dated February 6, 2009, on behalf of Hubschercorp, requesting a ruling on whether any of the proposed markings “Ribbon produced in Canada from Fabric made in South Korea”, “Ribbon processed in Canada from fabric made in South Korea”, “Ribbon produced in Canada/Fabric made in South Korea”, or “Fabric made in South Korea/Ribbon processed in Canada” are acceptable country of origin markings for imported woven textile ribbons. A marked sample was not submitted with your letter for review.
FACTS:
The subject merchandise consists of woven textile ribbon, measuring from 1 inch to 2 inches in width, on cardboard rolls usually in 200 yard lengths. The request letter does not specify the fiber content but the sample appears to be of man-made fibers. Based on this observation, classification of the ribbons would be in heading 5806, HTSUS, which provides for among other things, narrow woven fabric ribbons of man-made fibers. In Chapter 58 Note 5, “narrow woven fabrics” are defined in part as woven fabrics of a width not exceeding 30cm, whether woven as such or cut from wider pieces, provided with selvages (woven, gummed or otherwise made) on both edges.
The manufacturing operations for the ribbons are as follows:
South Korea:
fabric is woven, you state classified in heading 5408
55 inch wide fabric shipped to Canada
Canada:
55 inch wide fabric is hot slit, on a rotary fuse slitting machine, to 1 inch and 2 inch widths
slit ribbon is processed in a machine that embosses the edges to give the appearance of finished selvage edges
cardboard side flanges are applied to the complete roll of ribbon, usually 200 yards long
COUNTRY OF ORIGIN:
On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by 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
5806
(1) Except for fabric of wool or fine animal hair, a change from greige fabric of heading 5806 to a finished fabric of heading 5806 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing or moireing; or (2) If the country of origin cannot be determined under (1) above a change to heading 5806 form any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, and 5801 through 5803, and provided that the change is the result of a fabric-making process.
Since the processes mentioned in (1) do not occur in this instance, and your request letter indicates the South Korean fabric, in 55 inch widths, is classified in heading 5408, the exclusion noted in (2) applies. Therefore, paragraph (c)(2) of Section 102.21 is inapplicable.
Paragraph (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.”
Since these ribbons are neither knit to shape nor “wholly assembled” within the meaning of 19 CFR 102.21 (b)(6), paragraph (c)(3) is not applicable.
Paragraph (c)(4) states “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory, or insular possession in which the most important assembly or manufacturing process occurred.” For these ribbons, the most important manufacturing process is the fabric-making process, which was performed in South Korea. Therefore, the country of origin of these woven textile ribbons is South Korea.
MARKING:
You have requested a ruling on whether your proposed markings “Ribbon produced in Canada from Fabric made in South Korea”, “Ribbon processed in Canada from fabric made in South Korea”, “Ribbon produced in Canada/Fabric made in South Korea”, or “Fabric made in South Korea/Ribbon processed in Canada” are acceptable country of origin markings for imported woven textile ribbons.
The origin rules indicate that the country of origin of the 1inch and 2 inch wide woven textile ribbons is South Korea, the country where the fabric was formed by a fabric-making process. None of your proposed markings “Ribbon produced in Canada from Fabric made in South Korea”, “Ribbon processed in Canada from fabric made in South Korea”, “Ribbon produced in Canada/Fabric made in South Korea”, or “Fabric made in South Korea/Ribbon processed in Canada” are acceptable country of origin markings for the woven textile ribbons. All of your proposed markings only indicate that the fabric is from South Korea, not that the origin of the woven ribbons is South Korea as determined above. Since the proposed marking is in direct conflict with the origin determination made pursuant to Section 102.21, it does not satisfy the marking requirements of 19 U.S.C. 1304 and, thus, is not acceptable country of origin marking for the ribbons.
However, a phrase such as "Made in South Korea, Further Processed in Canada" indicates that the country of origin of the woven ribbons is South Korea which is consistent with the origin rules for ribbons under Section 102.21, Customs Regulations. Marking the ribbons “Made in South Korea, Further Processed in Canada” will satisfy the marking requirements of 19 U.S.C. 1304 and would be an acceptable country of origin marking for the ribbons. Other markings that incorporate the words “Made in South Korea…” and “Product of South Korea…” with reference to further processing in Canada may, upon review by this office, also be acceptable. 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 there under 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, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to the submitted items.
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.
As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
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 CFR Part 177).
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 Deborah Walsh at (646) 733-3044.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division