HQ 959339 - Country of Origin and Classification Determinations for Cotton Regenerated Fiber Waste and for Cotton/Acrylic Regenerated Fiber Waste; 19 CFR 102.21(e); - 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 959261 - HQ 959425 > HQ 959339

Previous Ruling Next Ruling
HQ 959339

August 13, 1996

CLA-2 RR:TC:TE 959339 GGD

CATEGORY: CLASSIFICATION

TARIFF NO.: 5503.30.0000; 5202.91.0000

Ms. Janan White
Southern Overseas International Expediters Post Office Box 20189
Charleston, South Carolina 29413-0189

RE: Country of Origin and Classification Determinations for Cotton Regenerated Fiber Waste and for Cotton/Acrylic Regenerated Fiber Waste; 19 CFR 102.21(e);

Dear Ms. White:

This letter is in response to your inquiry of June 4, 1996, concerning the country of origin and classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of regenerated fiber waste of 100 percent cotton, and regenerated fiber waste of both cotton and acrylic, that will be imported into the United States on or after July 1, 1996. A sample of each of the two types of fiber waste was submitted with the inquiry.

FACTS:

Each of the samples appears to be a collection of fibers that are twisted, tangled, and of varied lengths. The cotton fibers are produced by garnetting cotton rags of unspecified origin. (A garnetting process breaks up material and restores it to its fibrous condition for reuse.) The acrylic fibers are said to be virgin (nonwaste) fibers that are extruded in Italy, then blended with the garnetted cotton. Each of the samples includes some remnants of yarn not fully broken up by the garnetting -2-
process. Once produced, neither the cotton fibers nor the acrylic fibers are further worked (i.e., they are not carded, combed, or otherwise processed for spinning).

ISSUES:

1) What is the classification of each type of regenerated fiber waste?

2) What is the country of origin of each type of regenerated fiber waste?

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). Virtually all goods are classified according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied. The Explanatory Notes (EN), which represent the official interpretation of the tariff at the international level, facilitate classification by offering guidance in understanding the scope of the headings and GRI.

With respect to the classification issue, heading 5202, HTSUS, provides for "Cotton waste (including yarn waste and garnetted stock)." The EN to heading 5202 indicate that, among other goods, the heading covers waste cotton (including yarn and fibres) obtained from the garnetting of cotton goods (including rags). The heading excludes, among other goods, carded or combed cotton waste (heading 5203). The regenerated fiber waste of 100 percent cotton is classified in subheading 5202.91.0000, HTSUSA, the provision for "Cotton waste (including yarn waste and garnetted stock): Other: Garnetted stock." The applicable rate of duty is 4.8 percent ad valorem.

With regard to the classification of the cotton regenerated fiber waste that is blended with acrylic fibers, we note that chapter 55, HTSUS, covers man-made staple fibers. Heading 5503, HTSUS, provides for "Synthetic staple fibers, not carded, combed or otherwise processed for spinning," and the heading includes acrylic fibers. In pertinent part, note 2(A) to Section XI, HTSUS, states that: -3-

Goods classifiable in chapters 50 to 55 or in heading 5809 or 5902 and of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over each other single textile material. When no one textile material predominates by weight, the goods are to be classified as if consisting wholly of that one textile material which is covered by the heading which occurs last in numerical order among those which equally merit consideration.

In this case, if the acrylic fibers predominate by weight over the cotton material, the goods are classified under heading 5503, HTSUS. If neither textile material in the cotton/acrylic mixture predominates by weight over the other, the goods are classified as if consisting wholly of acrylic fibers, since this is the material covered by the heading which occurs last of headings 5202 and 5503. Therefore, if the regenerated fiber waste is composed of 50 percent or less cotton and 50 percent or more acrylic fibers, it is classified in subheading 5503.30.0000, HTSUSA, the provision for "Synthetic staple fibers, not carded, combed or otherwise processed for spinning: Acrylic or modacrylic." The applicable rate of duty is 4.8 percent ad valorem. If, however, the cotton/acrylic mixture of regenerated fiber waste is composed of over 50 percent cotton by weight, the blend is classified in subheading 5202.91.0000, HTSUSA, the provision for "Cotton waste (including yarn waste and garnetted stock): Other: Garnetted stock." The applicable rate of duty is 4.8 percent ad valorem.

With respect to the country of origin of the merchandise, we note that 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 or 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 is 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." Since the origin of the cotton rags from which the regenerated fiber waste is produced is unspecified, the -4-
merchandise cannot be found to have been wholly obtained or produced in a single country, territory or insular possession. Paragraph (c)(1) is therefore not applicable.

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:"

5202 ... A change to heading 5202 from any other heading outside that group, provided that the change is the result of garnetting. If the change to heading 5202 is not the result of garnetting, the country of origin of the good is the country of origin of the good prior to its becoming waste.

5503-5504 ... A change to heading 5503 through 5504 from any other chapter, except from Chapter 54.

As previously noted, the cotton regenerated fiber waste is classified under heading 5202, HTSUS. The first rule above requires that a tariff shift to heading 5202 occur. A tariff shift to heading 5202 occurs as the result of garnetting in Italy, from merchandise classifiable in heading(s) 6310 and/or 6309, which cover(s), among other goods, rags and worn textile articles, respectively. Since the tariff shift occurring in Italy meets the requirements of the rule, the country of origin of the cotton regenerated fiber waste is Italy.

As determined above, the cotton regenerated fiber waste that is blended with acrylic fibers is classified under either heading 5202 or heading 5503, HTSUS. If classified under heading 5202, HTSUS, the first rule above again applies and the tariff shift that occurs in Italy meets the rule's requirements. Thus, the country of origin of the cotton/acrylic mixture of regenerated fiber waste that is classified under heading 5202 is Italy. -5-

If the cotton/acrylic blend is classified under heading 5503, HTSUS, the second rule above requires that a tariff shift to heading 5503 from any other chapter occur. In pertinent part, the General EN to chapter 55, HTSUS, states that:

"[m]an-made staple fibres are usually manufactured by extrusion through spinnerets (jets) having a large number of holes (sometimes several thousand); the filaments from a large number of spinnerets (jets) are then collected together in the form of a tow. This tow may be stretched and then cut into short lengths...according to the particular man-made fibre concerned, the type of yarn to be manufactured and the nature of any other textile fibres with which they are to be mixed."

Heading 3906 covers "Acrylic polymers in primary forms." The acrylic fibers of heading 5503, HTSUS, are produced by the conversion of acrylic polymers into acrylic fibers in Italy, through manufacturing processes similar to those described above. Since the tariff shift to heading 5503 from chapter 39 occurs in Italy, the requirements of the second rule above are met. Therefore, the country of origin of the cotton/acrylic mixture of regenerated fiber waste that is classified under heading 5503 is Italy.

HOLDING:

The cotton regenerated fiber waste is classified in subheading 5202.91.0000, HTSUSA, the provision for "Cotton waste (including yarn waste and garnetted stock): Other: Garnetted stock." The applicable rate of duty is 4.8 percent ad valorem.

If the cotton/acrylic mixture of regenerated fiber waste is composed of 50 percent or less cotton and 50 percent or more acrylic fibers, it is classified in subheading 5503.30.0000, HTSUSA, the provision for "Synthetic staple fibers, not carded, combed or otherwise processed for spinning: Acrylic or modacrylic." The applicable rate of duty is 4.8 percent ad valorem.

If the cotton/acrylic mixture of regenerated fiber waste is composed of over 50 percent cotton by weight, it is classified in subheading 5202.91.0000, HTSUSA, the provision for "Cotton waste (including yarn waste and garnetted stock): Other: Garnetted stock." The applicable rate of duty is 4.8 percent ad valorem. -6-

The country of origin of the cotton regenerated fiber waste is Italy.

The country of origin of the regenerated fiber waste composed of both cotton and acrylic fibers is Italy.

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 19 CFR 177.9(b)(1), which states that each ruling letter is issued on the assumption that all of the information furnished and incorporated 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. A change in the facts previously furnished may affect the determination of country of origin. Thus, if there is any change in the facts provided to Customs, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, 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

Previous Ruling Next Ruling

See also: