CLA 2-RR:NC:TA:351 F84221
Mr. George W. Stockton
Coats American
P.O. Box 729
Old Fort, NC 28762
RE: Classification and country of origin determination for yarn; 19 CFR 102.21(c)(2); tariff shift
Dear Mr. Stockton:
This is in reply to your letter dated March 6, 2000, requesting a classification and country of origin determination for viscose rayon filament yarn which will be imported into the United States.
FACTS:
The subject merchandise consists of plied 100 viscose rayon yarn. .
The manufacturing operations for the yarn are as follows: Rayon XX, of a heading outside of Chapter 54, HTS, will be extruded in Germany into a single yarn of heading 5403. The yarn will be shipped to Turkey, where it will be twisted into a two ply yarn of the same heading. The yarn will then be shipped to Vietnam where it will be dyed, lubed and packaged into finished cones weighing 145 grams. In fax and telephone communications, you stated that the thread has a final “Z” twist and is dressed for use (“lubed”), as sewing thread.
ISSUE:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the yarn will be 5401.20.0000, Harmonized Tariff Schedule of the United States, (HTS), which provides for sewing thread of man-made filaments, whether or not put up for retail sale, of artificial fibers. The rate of duty will be 12 percent ad valorem.
COUNTRY OF ORIGIN - LAW AND ANALYSIS:
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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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
5401 – 5406 A change to heading 5401 through 5406 from any other heading, provided that the change is the result of an extrusion process
Section 102.21(e) states that the change must be from any heading outside of heading 5401 through 5406 and be the result of an extrusion process. As the rayon yarn is extruded from material outside of heading 5401 to yarn of heading 5401, and is extruded in a single country, that is, Germany, as per the terms of the tariff shift requirement of Section 102.21(c) (2), country of origin is conferred in Germany.
HOLDING:
The country of origin of the yarn is Germany.
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 Camille Ferraro at 212-637-7086.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division