CLA-2-60:RR:NC:TA:351 D80021
Ms. Stacy Bauman
American Shipping Company, Inc.
140 Sylvan Avenue
Englewood Cliffs, NJ 07632
RE: Classification and country of origin determination of an
embroidered fabric; 19 C.F.R. 102.21(c)(2)
Dear Ms. Bauman:
In your letter dated November 3, 1998 you requested a
classification ruling on behalf of ZV II, Inc.
You submitted a sample of a 72% triacetate, 28% rayon woven
fabric which has embroidered and beaded designs on it. In a
telephone conversation you stated that the ground fabric is dyed
and weighs over 100 grams per square meter. Your letter stated
that the ground fabric is woven in Japan. It is shipped to the
United States where it is cut into pieces measuring approximately
12 by 20 inches. These pieces are then shipped to Hong Kong where
embroidery and beading of separate designs on the fabric pieces is
performed. There may or may not be multiple designs/embroideries
to each fabric piece. Some of the pieces also have traced lines of
demarcation on the fabric. You state that in some instances, there
are chalk marks on the fabric, which will indicate where the cut
lines should be. In other cases, there will not be chalk marks,
and in still other cases, the outline of the embroidery will serve
as a guide for cutting. This merchandise is then returned to the
United States where the pieces are cut, further processed and used
as beaded or embroidered parts of wearing apparel, in the forms of
cuffs, collars or pocket flaps. You request the classification
and country of origin of these pieces in condition as they are
exported from Hong Kong to the United States, including those
pieces which have lines of demarcation drawn on them.
The applicable subheading for the knit fabrics will be
5810.92.9080, Harmonized Tariff Schedule of the United States
(HTS), which provides for embroidery in the piece, in strips or in
motifs; other embroidery; of man-made fibers; other; other; other.
The duty rate, which is predicated upon the construction of the
ground fabric, will be 16.2. percent ad valorem.
With regard to the issue of the embroidered fabric's country
of origin, we note that on December 8, 1994, the President signed
into law the Uruguay Round Agreements Act. Section 334 of that Act
provides new rules of origin for textiles and apparel entered, or
withdrawn from warehouse, for consumption, on or after July 1,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." Since the embroidered fabric is not wholly obtained or
produced in a single country, territory or insular possession,
paragraph (c)(1) is not applicable.
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
foreign material 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) 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:"
5810.91-5810.99 (1) For embroidered fabric, the country of
origin is the country, territory, or insular possession in which
the fabric was produced by a fabric-making process.
Since the fabric was produced by the process of weaving in
Japan, the embroidered fabric's country of origin is Japan, and the
merchandise should be marked to indicate this fact.
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 19 C.F.R. 177.9(b)(1), which
states that each ruling letter is issued on the assumption that all
of the information furnished and incorporated in the ruling letter,
either directly, by reference, or by implication, is accurate and
complete in every material respect.
Should it be subsequently determined that the information
furnished is not complete and does not comply with 19 C.F.R.
177.9(b)(1), the ruling will be subject to modification or
revocation. A change in the facts previously furnished may affect
the determination of country of origin. Thus, if there is any
change in the facts provided to Customs, it is recommended that a
new ruling request be submitted in accordance with 19 C.F.R.
177.2.
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 Camille Ferraro at 212-466-5885.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division