CLA-2-63:OT:RR:NC:N3:349
Mr. Richard L. Writsman
Continental Agency Inc.
1768 W. 2nd Street
Pomona, CA 91766
RE: The tariff classification and country of origin determination for surgical towels; 19 CFR 102.21(c)(2); tariff shift
Dear Mr. Writsman:
In your letter dated August 1, 2019, you requested a country of origin ruling on behalf of your client, A Plus International Group. Two identical samples were submitted with your ruling request and will be retained by this office.
The subject merchandise consists of surgical towels which you referred to as operating room (O.R.) towels. The blue towels are made from 100 percent cotton huck weave fabric and measure approximately 17 x 26 inches. The towels are hemmed on all four sides. In your request, you indicated the towels will also be offered in green and white. The manufacturing operations for the surgical towels are as follows:
VIETNAM:
-fabric is woven.
-rolls of greige (or gray) fabric are shipped to China.
CHINA:
-fabric is dyed.
-fabric is cut into rectangles.
-fabric is hemmed and finished.
The applicable subheading for the surgical towels will be 6307.90.8910, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other made up articles,
including dress patterns: other: other: surgical towels. The rate of duty will be 7 percent ad valorem.
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apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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
6307.90 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 fabric comprising the surgical towels is formed in a single country, that is, Vietnam, as per the terms of the tariff shift requirement, country of origin is conferred in Vietnam.
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 the World Wide Web at https://hts.usitc.gov/current.
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 Kim Wachtel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division