HQ 959201 - Country of origin determination for a woven scarf; 19 CFR - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1996 HQ Rulings > HQ 959031 - HQ 959256 > HQ 959201

Previous Ruling Next Ruling
HQ 959201

June 6, 1996
CLA-2 RR:TC:TE 959201 jb

CATEGORY: CLASSIFICATION

Alexandra M. Stoianovici
Associated Merchandising Corporation
1440 Broadway
New York, NY 10018

RE: Country of origin determination for a woven scarf; 19 CFR

Dear Ms. Stoianovici:

This is in reply to your letter dated May 2, 1996, requesting a country of origin determination for a woven scarf which will be imported into the United States both at the present time or sometime on or after July 1, 1996. A sample was submitted to this office for examination.

FACTS:

The submitted garment consists of a woman's woven, 100 percent polyester charmeuse scarf. The manufacturing operations are as follows:

Korea

- fabric sourced;
- fabric is dyed and/or printed.

China

- fabric is finished;
- fabric is cut;
- fringe is attached;
- borders are hemmed;
- finishing.

ISSUE:

What is the country of origin of the submitted merchandise?

LAW AND ANALYSIS:

Section 12.130 of the Customs Regulations

Section 12.130 of the Customs Regulations (19 CFR 12.130) sets forth the principles of country of origin for textiles and textile products subject to Section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854).

Pursuant to 19 CFR 12.130(b), the standard of substantial transformation governs the country of origin determination where textiles and textile products are processed in more than one country. The country of origin of textile products is deemed to be that foreign territory or country where the article last underwent a substantial transformation. Substantial transformation is said to occur when the article has been transformed into a new and different article of commerce by means of substantial manufacturing or processing.

The factors to be applied in determining whether or not a manufacturing operation is substantial are set forth in 19 CFR 12.130(d)(2). The following are considered:

(i) The physical change in the material or article; (ii) The time involved in the manufacturing or processing;
(iii) The complexity of the manufacturing or processing;
(iv) The level or degree of skill and/or technology required in the manufacturing or processing operations; (v) The value added to the article or material;

Section 12.130(e)(1) describes manufacturing or processing operations from which an article will usually be considered a product of the country in which those operations occurred:

(i) Dyeing of fabric and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting; permanent embossing, or moireing; (ii) Spinning fibers into yarn;
(iii) Weaving, knitting or otherwise forming fabric; (iv) Cutting of fabric into parts and the assembly of those parts into the completed article; or (v) Substantial assembly by sewing and/or tailoring of all cut pieces of apparel articles which have been cut from fabric in another foreign territory or country, or insular possession, into a completed garment (e.g., the complete assembly of all cut pieces of suit-type jackets, suits, and shirts).

In the case of the subject scarf, a substantial transformation occurs at the time of the forming of the fabric. Accordingly, the country of origin for the subject scarf is the country in which the fabric is sourced, that is, Korea.

Section 102.21 of the Customs Regulations

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":

6213-6214 (3) The country of origin of a good classifiable under heading 6213 through 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

The subject merchandise is a women's woven scarf classifiable in heading 6214, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The country of origin of the scarf is the single country in which the fabric was formed by a fabric-making process- that is, Korea.

HOLDING:

The country of origin of the subject woman's scarf, under Section 12.130, is Korea.

The country of origin of the subject woman's scarf, under Section 102.21, is Korea.

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 is issued on the assumption that all of the information furnished 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 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, is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

Sincerely,

John Durant, Director
Tariff Classification Appeals

Previous Ruling Next Ruling