CLA 2-OT:RR:NC:N3:351
Raymond Morency
Cansew, Inc.
111 Chabanel West, Suite 101
Montreal, Quebec
Canada H2N 1C9
RE: Classification and country of origin determination for sewing thread; 19 CFR 102.21(c)(4)
Dear Mr. Morency:
This is in reply to your letter dated April 16, 2010, requesting a country of origin determination for sewing thread that will be imported into the United States.
FACTS:
The subject merchandise consists of sewing thread.
The manufacturing operations for the sewing thread are as follows, according to your letter:
Nomex fiber, originating in DuPont's Spain or USA production facility is stretch-broken and spun into yarn (5509.12.0000) in France. This stretch-broken tow spun yarn is then exported to Canada, where we wind the yarn on to dye tubes, dye the yarn, apply a finish to make the yarn suitable for use as sewing thread, then wind the finished product on cones. At this point, the finished product is considered sewing thread (meets the definition of sewing thread as defined in the tariff) and is classified under 5508.10.0000.
We assume the definition you mention is Legal Note 5 to Section XI, Harmonized Tariff Schedule of the United States (HTSUS), wherein sewing thread is defined for tariff purposes. For purposes of this ruling, we accept your statement that the instant sewing thread meets the terms of Legal Note 5, based on the information you have supplied.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
According to the above description, the applicable subheading for the sewing thread upon importation into the United States will be 5508.10.0000, HTSUS, which provides for sewing thread of manmade staple fibers, whether or not put up for retail sale; of synthetic staple fibers. The rate of duty will be 11.4% 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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 the result of a spinning process.
Section 102.21(e) states that for articles of heading 5508, HTSUS, yarns of heading 5509, HTSUS are excepted. Accordingly, as the yarn for the subject synthetic staple fiber sewing thread does not undergo the requisite change in tariff classification since, according to your statement, the sewing thread is made from a yarn classifiable in heading 5509. Section 102.21(c)(2) is thus 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.
As the subject merchandise is not knit to shape and the sewing thread does not undergo an assembly process, Section 102.21(c)(3) is not applicable.
Section 102.21(c)(4) states that, “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.” In the case of the subject sewing thread, the most important manufacturing process occurs at the time of the spinning of the yarn. Consequently, the country of origin of the subject sewing thread is France, where the original yarn was spun.
HOLDING:
The country of origin of the sewing thread is 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