CLA 2-RR:NC:TA:351 G86022
Mr. Michael McCarthy
Circle International, Inc.
985 Sullivan Road
College Park, GA 30349
RE: Classification and country of origin determination for rayon thread from Germany and polyester thread from Taiwan; 19 CFR 102.21(c)(2); tariff shift.
Dear Mr. McCarthy:
This is in reply to your letter dated December 29, 2000, on behalf of your client, MESCO, Ltd., requesting a classification and country of origin determination for rayon thread and polyester thread which will be imported into the United States.
FACTS:
The subject merchandise consists of two samples. The first is described as rayon computerized embroidery thread, 120 denier (133 decitex), 2 ply, not textured, not high tenacity, dressed with silicone 0.5g/100g of thread. The second is described as polyester computerized embroidery thread, with all the same specifications.
The manufacturing operations for the rayon thread are as follows: the thread is extruded in Germany and shipped to Taiwan for twisting, dying, and packaging.
The manufacturing operations for the polyester thread are as follows: the thread is extruded in Taiwan and shipped to the Philippines for twisting, dying, and packaging.
ISSUES:
What are the classification and country of origin of the subject merchandise?
CLASSIFICATION:
The applicable subheading for the rayon thread will be 5403.41.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for artificial filament yarn (other than sewing thread), not put up for retail sale...; other yarn, multiple (folded) or cabled; of viscose rayon. The rate of duty will be 9.1 percent ad valorem.
The applicable subheading for the polyester thread will be 5402.62.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for synthetic filament yarn (other than sewing thread), not put up for retail sale...; other yarn, multiple (folded) or cabled; of polyesters. The rate of duty will be eight percent ad valorem.
Both threads fall within textile category designation 606. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.GOV. In addition, the designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected and should also be verified at the time of shipment.
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.
As the rayon thread is of heading 5403 and the polyester thread is of heading 5402, and
each is extruded in a single country (Germany for the rayon thread and Taiwan for the polyester
thread), as per the terms of the tariff shift requirement, country of origin in each case is
conferred in that source country.
HOLDING:
The country of origin of the rayon thread is Germany and the country of origin of the polyester thread is Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa.
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 212-637-7086.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division