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HQ 959340




July 10, 1996

CLA-2 RR:TC:TE 959340 GGD

CATEGORY: CLASSIFICATION

TARIFF NO.: 5810.92.9080

Ms. Laura Denny
CBT International, Inc.
110 West Ocean Boulevard, Suite 1003
Long Beach, California 90802

RE: Country of Origin and Classification Determinations for Embroidered Fabric; 19 CFR 102.21

Dear Ms. Denny:

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 embroidered fabric that will be imported into the United States on or after July 1, 1996. A sample of the embroidered fabric (as well as the unfinished "grey" or "greige" fabric) was submitted with your inquiry.

FACTS:

The submitted sample consists of 65 percent polyester and 35 percent cotton fabric that is woven in China, then sent to Thailand, where it is bleached, embroidered, and finished. The fabric is woven with single yarns of yarn number 45, with 88 yarns in the warp and 64 yarns in the filling. There are 35.2 threads per square centimeter in the warp and 25.6 threads per square centimeter in the filling.

The bleached, embroidered, finished fabric sample measures approximately 114.3 centimeters (45 inches) in width by 96.5 centimeters (38 inches) in length, and weighs approximately 115.4 grams (4.07 ounces). The fabric therefore weighs approximately 104.6 grams per square meter. -2-

ISSUES:

1) What is the classification of the embroidered fabric?

2) What is the country of origin of the fabric?

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 5810, HTSUS, provides for "Embroidery in the piece, in strips or in motifs." Subheading Note 2(A) to Section XI, HTSUS, states that "Products of chapters 56 to 63 containing two or more textile materials [in this case, polyester and cotton fabric and embroidery yarns] are to be regarded as consisting wholly of that textile material which would be selected under note 2 [below] to this section for the classification of a product of chapters 50 to 55 consisting of the same textile materials." Subheading Note 2(B)(c) to Section XI, HTSUS, states that "[f]or the application of this rule: In the case of embroidery of heading 5810 and goods thereof, only the ground fabric shall be taken into account. However, embroidery without visible ground, and goods thereof, shall be classified with reference to the embroidering threads alone."

In pertinent part, note 2(A) to Section XI, HTSUS, states that "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." Chapter 55, HTSUS, covers man-made staple fibers, e.g., polyester. In this case, the polyester textile material predominates by weight over the cotton. If not embroidered, the fabric would be covered under chapter 55. -3-

Statistical note 1(c) to chapter 55, HTSUS, states that "For the purposes of the woven fabrics of chapter 55: The term "printcloth" means plain weave fabrics, weighing not more than 170 grams per square meter, of average yarn numbers 43-68, containing more than 33 singles yarns per square centimeter and not containing multiple (folded) or cabled yarns, of square construction, whether or not napped, of the following types: (i) Fabrics, not combed; and (ii) Other fabrics, measuring less than 168 cm in width." The ground fabric (not embroidered) would thus be classified in subheading 5513.11.0060, HTSUSA, textile category 615, the provision for "Woven fabrics of synthetic staple fibers, containing less than 85 percent by weight of such fibers, mixed mainly or solely with cotton, of a weight not exceeding 170 grams per square meter: Unbleached or bleached: Of polyester staple fibers, plain weave, Printcloth," with an applicable column one duty rate of 16.6 percent ad valorem.

The embroidered fabric is classified in subheading 5810.92.9080, HTSUSA, textile category 229, the provision for "Embroidery in the piece, in strips or in motifs: Other embroidery: Of man-made fibers: Other, Other: Other." In pertinent part, Additional U.S. note 3 to chapter 58, HTSUS, states that "The rates of duty applicable to subheading 5810.92.90 are: column 1 (general)- 8.2 percent, but in the case of embroidery in the piece not less than the rate which would apply to such product if not embroidered." The rate of duty is therefore the rate applicable to the classification of the ground fabric above, or 16.6 percent ad valorem.

With regard to the issue of the embroidered fabric's country of origin, 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 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." Since the embroidered fabric is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) is not applicable. -4-

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:"

5810.91-5810.99 (1) For embroidered fabric, the country of origin is the country, territory, or insular possession in which the fabric was produced by a fabric-making process.

Since the fabric was produced by the process of weaving in China, the embroidered fabric's country of origin is China.

HOLDING:

The embroidered fabric is classified in subheading 5810.92.9080, HTSUSA, textile category 229, the provision for "Embroidery in the piece, in strips or in motifs: Other embroidery: Of man-made fibers: Other, Other: Other." The applicable rate of duty is 16.6 percent ad valorem.

The country of origin of the embroidered fabric is China.

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

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report On Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office.

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

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