CLA 2-OT:RR:NC:N3:351
Jim Mylius
Trade Services of Texas, Inc.
2210 N. Veterans Blvd., Ste. 140
Eagle Pass, TX 78852
RE: Classification and country of origin determination for burlap bags and burlap fabric in rolls; 19 CFR 102.21(c)(2); tariff shift
Dear Mr. Mylius:
This is in reply to your letter dated March 31, 2011, requesting a classification and country of origin determination for burlap bags and burlap rolls which will be imported into the United States. Your request was made on behalf of your client, Single Source Apparel of
Greenwood, S.C.
FACTS:
The subject merchandise consists of burlap bags and rolls of burlap fabric. No samples were included with your ruling request, but photographs of a burlap bag and a roll of burlap were included. We also researched the product at www.fbbag.com. For purposes of this ruling, we assume that the burlap is composed of jute fibers.
The manufacturing operations for the burlap bags and burlap fabric are as follows:
Single Source Apparel (SSA) purchased burlap bags and rolls of burlap fabric in the United States from a supplier located in Ohio who had previously imported Indian-origin burlap fabric directly from India and paid duties on the fabric when it was imported into the U.S. The Ohio supplier cut the Indian burlap fabric at his U.S. facility and created rolls of burlap approximately 18” (45.72 cm) wide and 500 yards long. The Ohio supplier also cut and sewed some of the Indian burlap to create bags approximately 14” by 24”.
SSA purchased a large quantity of these burlap bags and the burlap fabric from the Ohio supplier. SSA exported the burlap bags and fabric to factories in Mexico to be used as components in the manufacture of a new product called the Floodbloc bag. Due to changing business conditions, SSA was not able to complete the planned manufacturing process to utilize all the burlap bags and fabric to make Floodbloc bags in Mexico.
SSA now wants to import into the U.S. from Mexico the unused burlap bags and burlap fabric that were previously exported from the U.S. to Mexico.
ISSUE:
What are the classification, country of origin, and marking requirements of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the burlap fabric in rolls 18” (45.72 cm) wide will be 5310.10.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for woven fabrics of jute or of other textile bast fibers of heading 5303: unbleached, not over 130 cm in width. The rate of duty will be Free.
The applicable subheading for the burlap bags will be either 6305.10.0000, HTSUS, which provides for sacks and bags, of a kind used for the packing of goods: of jute or of other textile bast fibers of heading 5303 (the duty rate would be Free) or 6307.90.9889, HTSUS, which provides for other made up textile articles, other (the general rate of duty would be 7% ad valorem). We are unable to specifically classify the bags in either subheading because we lack certain information. (We will still be able to determine the country of origin; see below.) If you would like a classification ruling on the bags, please supply the following information regarding the bags as imported from Mexico into the United States:
provide a sample;
verify the fiber content;
identify the contents of the bag, if any;
explain how they are packaged for sale by SSA (e.g., specifically packaged or according to individual orders; retail packaging or plain shipping cartons; etc.);
provide any printed advertising or sales literature.
If you decide to submit a request with a sample and your replies to the above, please include copies of your original submission and this letter, and mail your request to U.S. Customs and Border Protection, Customs Information Exchange, 10th Floor, One Penn Plaza, New York, NY 10119, attn: Binding Rulings Section.
Without more information it is difficult to discern whether the exportation and importation may qualify as drawback-eligible. If you wish to obtain a ruling on drawback eligibility, you may submit a request to the following address:
Entry Process and Duty Refunds Branch
Attn: Carrie Owens, Branch Chief
Mint Annex
799 9th Street NW
Washington, D.C. 20229
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 burlap fabric was wholly obtained or produced in a single country, that is, India, country of origin of the fabric is conferred in India.
However, as the bags are not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable to them.
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
6305 The country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
6307 The country of origin of a good classifiable under subheading 6307.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
As the burlap fabric was woven in a single country, that is, India, as per the terms of the tariff shift requirement for either heading 6305 or subheading 6307.90, country of origin of the bags is conferred in India.
MARKING:
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.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. 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. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the bags is the consumer who purchases the product at retail. SSA is the ultimate purchaser of the fabric.
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 the ultimate purchaser and if the ultimate purchaser can tell the country of origin of the article by viewing the container in which it is packaged, the individual article would be excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d). We assume this will be the circumstance with the fabric. Accordingly, marking the container in which the fabric will be imported by SSA in lieu of marking the article itself is an acceptable country of origin marking for the imported fabric, provided the port director is satisfied that the fabric rolls will remain in the marked container until they reach the ultimate purchaser, SSA. If, however, the fabric rolls will be sold after being removed from the marked containers, they will have to be individually marked or repackaged in a container that says, “Made in India.”
The bags, however, must be marked “Made in India,” either individually or in marked containers (as detailed above) so that the retail purchaser can identify the country of origin.
HOLDING:
The country of origin of the burlap fabric and the bags made from this fabric is India.
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