CLA-2-54:OT:RR:NC:N3:351
Ted Conlon
Fourstar Group USA Inc.
189 Main St., Ste. 31
Milford, MA 01757
RE: The tariff classification and country of origin of textile curling ribbons
Dear Mr. Conlon:
In your letter dated December 19, 2018, you requested a tariff classification ruling. Samples will be returned as requested.
Item number C2700027 is a pastel curling ribbon [gold]. The ribbon is composed of 100 percent polypropylene (PP). The ribbon measures approximately 5 mm wide and 300 feet long.
Item number C2700029 is a printed pastel curling ribbon [gold]. The ribbon is composed of 80 percent PP and 20 percent polyethylene terephthalate (PET). The ribbon measures approximately 5 mm wide and 100 feet long.
Item number C2700040 is an iridescent metallic curling ribbon [purple]. The ribbon is composed of 80 percent PP and 20 percent PET. The ribbon measures approximately 5 mm wide and 100 feet long. You state that this ribbon is composed of PP and PET film and no metalized yarns or fibers; the curling ribbon has a “metallic sheen,” giving this sample the physical appearance of being composed of metalized fibers.
Plastic strip measuring up to and including 5 mm in width constitutes a textile; items made with plastic strip exceeding 5 mm in width constitute articles of plaiting materials. The applicable subheading for item numbers C2700027, C2700029, and C2700040 will be 5404.90.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Strip and the like (for example, artificial straw) of synthetic textile materials of an apparent width not exceeding 5mm: Other. The rate of duty is Free.
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 https://hts.usitc.gov/current.
You also requested a country of origin determination. The proposed manufacturing operation for all three curling ribbon samples under consideration are as follows:
The Polyproplene (PP)/polyethelene (PE) film sheet is extruded in China and some of the film will undergo an additional printing process also in China. The film is shipped to Cambodia, where it will undergo the following processes:
The extruded film is cut into strips that do not measure more than 5mm in width
The cut strips are placed on a machine to wind them
The finished PP/PE curling ribbon is spooled and packaged for export
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 CFR 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.” Since 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
5401-5406 (1) A change to heading 5401 through 5406 from any other heading, provided that the change is the result of an extrusion process.
Since the film was extruded in China, and subsequently cut, wound, spooled, and packaged in Cambodia, the terms of the tariff shift requirements are not met. Therefore according to the above rule, the country of origin of the finished curling ribbon is China.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 5404.90.0000, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 5404.90.0000, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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 Adleasia Lonesome via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division