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HQ 084272


August 18, 1989

CLA-2 CO:R:C:G 084272 CMR

CATEGORY: CLASSIFICATION

TARIFF NO.: 6214.40.0000

Ms. Ann Williams
A.N. Deringer, Inc.
30 West Service Road
Champlain, New York 12919-9703

RE: Country of origin of certain scarves

Dear Ms. Williams:

This ruling is in response to your letter of April 20, 1989, on behalf of your client, Zandraz Accessoires Canada Inc., requesting a determination of the country of origin of certain scarves. A sample scarf has been submitted for our review.

FACTS:

The submitted scarf is made in Canada of 100 percent woven rayon fabric imported from India. The finished scarf measures approxi- mately 66-1/2 inches by 33-1/2 inches. The imported fabric has two selvage edges and it is stated in your letter that it is ripped to 36 inch lengths so that the fabric may be packed flat for shipping purposes. In fact, the fabric is ripped to approximately 66-1/2 inches in length and 34 inches in width.

When the fabric reaches Canada, it will be cut and sewn on all four sides to make scarves. The scarves will be labeled, pre- ticketed and pre-packed. The cost of the work performed in Canada represents approximately 60 percent of the selling price of the scarf while the fabric value is 40 percent of the cost.

ISSUE:

Has a substantial transformation occurred making Canada the country of origin for the scarf?

What are the country of origin labeling requirements for the scarf?

What restrictions, if any, apply to the scarf?

LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations pertains to country of origin determinations for textiles and textile products. The pertinent portion of Section 12.130 provides:

(e) Manufacturing or processing operations

(2) An article or material usually will not be considered to be a product of a particular foreign territory or country, or insular possession of the U.S. by virtue of merely having undergone any of the following:

(i) Simple combining operations, labeling, pressing, cleaning or dry cleaning, or packaging operations, or any combination thereof;

(ii) Cutting to length or width and hemming or overlocking fabrics which are readily identifiable as being intended for a particular commercial use * * * *

A sample of the imported fabric was submitted for our review with a sample scarf. It appears from examining both samples that the fabric is not cut on the two selvage edges, but only on the other two sides. All sides are hemmed.

The cutting and hemming operations which take place in Canada are simple operations which do not significantly change the scarves. The additional operations, labeling, pre-ticketing and pre-packaging, are also simple operations. We do not believe the country of origin of the scarves is changed within the requirements of 19 CFR 12.130. The country of origin remains India.

It is necessary to determine if these scarves might nonetheless be considered as "originating" from Canada within the terms of the U.S./Canada Free Trade Agreement (FTA). Under the FTA, a change to any heading of Chapter 62 from any heading outside that chapter other than headings 5111-5113, 5208-5212, 5309-5311, 5407-5408, 5512-5516 or 6001-6002, would qualify a garment as "originating" from Canada provided that the goods are both cut and sewn in the territory of either Party or both Parties.

The rayon fabric imported into Canada from India falls within the headings which are excluded above. Simply importing the fabric, cutting and hemming it in Canada, will not qualify it for treatment as a Canadian product under the FTA.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), requires that every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. Additional labeling requirements are applicable to textile products under the Textile Fiber Products Identification Act (15 U.S.C. 70).

A label securely affixed to the scarf indicating India as the country of origin will satisfy the requirements of 19 U.S.C. 1304. However, you indicate some packaging is done prior to importation to the U.S. If such packaging obscures the labeling affixed to the scarf, the country of origin disclosure must be repeated on that packaging. If the packaging also contains a U.S. address, or reference to any place not the country of origin of the scarf, the origin disclosure must be in close proximity to that reference in comparable size print (see 19 CFR 134.46).

We believe that scarves are subject to 15 U.S.C. 70, so we urge you to contact the Federal Trade Commission directly for guidance on complying with the pertinent regulations administered by that agency.

As to the classification of the submitted article, it is somewhat larger than usual for consideration as a scarf. It is made of light, transparent fabric, and, we believe, should be considered a veil under heading 6214, HTSUSA.

HOLDING:

The country of origin for the submitted scarf is India. The scarf is classifiable under the provision for shawls, scarves, mufflers, mantillas, veils and the like, of artificial fibers, in subheading 6214.40.0000, HTSUSA, textile category 659, dutiable at 10.6 percent ad valorem. This merchandise is presently subject to a visa requirement and quota restraints based upon international textile trade agreements.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,

John Durant, Director
Commercial Rulings Division

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