HQ 959014 - Country of origin determination for woven fabric logo labels; 19 CFR ?102.21(c)(2); tariff shift - United States International Trade Commision Rulings

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HQ 959014

April 26, 1996
CLA-2 RR:TC:TE 959014 jb

CATEGORY: CLASSIFICATION

Arthur W. Bodek, Esq.
Brett Harris, Esq.
Siegel, Mandell & Davidson, P.C.
One Astor Place
1515 Broadway, 43rd Floor
New York, NY 10036-8901

RE: Country of origin determination for woven fabric logo labels; 19 CFR ?102.21(c)(2); tariff shift

Dear Mr. Bodek and Mr. Harris:

This is in reply to your letter dated March 6, 1996, on behalf of your client, Liz Claiborne, Inc., requesting a country of origin determination for woven fabric logo labels which will be imported into the United States sometime on or after July 1, 1996. Additionally, you request information regarding the visa and applicable quota category for this merchandise. Samples were submitted to this office for examination.

FACTS:

The submitted samples consist of textile labels made out of woven nylon fabric which will bear one of the Liz Claiborne trademarked logos. The logos will either be printed on to the preexisting fabric or the label will be woven contemporaneously with a logo using a jacquard weaving process. After importation the labels will be sewn into various articles of the Liz Claiborne apparel line. The manufacturing processes are as follows:

SCENARIO I

Country A Country B

- roll of narrow fabric is woven. - fabric is cut lengthwise to form individual label blanks; - label blanks are adorned with a logo which will be printed on to the label blanks.

SCENARIO II

Country A Country B

- roll of narrow fabric is woven to - labels are cut and hemmed to form the form contemporaneously, the label finished labels. and a logo, by a jacquard weaving process.

ISSUE:

What is the country of origin of the submitted merchandise?

LAW AND ANALYSIS:

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 Section 334 of that Act provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 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":

5807 The country of origin of a good classifiable under heading 5807 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

The subject merchandise are woven fabric labels classified in heading 5807, HTSUSA. As the fabric-making process for this merchandise occurs in one country in both scenarios, that is, Country A, it meets the requirements set out by the tariff shift.

HOLDING:

The country of origin of the subject woven fabric labels is Country A. In connection with the importation of this merchandise a visa will be required from Country A. The applicable quota category for this merchandise will be that associated with the finished labels.

This ruling is issued pursuant to the provisions of Part 177, Customs Regulations (19 CFR Part 177). If the specific factual situation is not as described above, this ruling may not be valid. In such an event, it is recommended that a new ruling request be submitted.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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