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HQ 959471




September 24, 1996

CLA-2 RR:TC:TE 959471 CAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 5810.92.1000

Arthur Speier
Speier Trading Company
7343 Mimosa Lane
Dallas, Texas 75230

RE: Country of origin of an embroidered motif; Section 102.21(c)(2), Customs Regulations

Dear Mr. Speier:

This is in response to your inquiry of July 2, 1996, requesting a country of origin determination pursuant to Section 102.21, Customs Regulations, and a tariff classification determination under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), for an ornamental motif. A sample was submitted for examination. The port of entry is Dallas, Texas.

FACTS:

The article at issue is a hand-made decorative embroidered motif that is constructed of polyester material. The polyester fabric is either produced in Thailand or Singapore. The fabric is then sent to Viet Nam where the finished motif is manufactured.

ISSUE:

I. What is the country of origin of the subject embroidered motif?

II. What is the proper tariff classification for the subject embroidered motif?

LAW AND ANALYSIS:

TARIFF CLASSIFICATION

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's, taken in order.

Heading 5810, HTSUSA, is the provision for embroidery in the piece, in strips or in motifs. Subheading 5810.92, HTSUSA, is the provision for other embroidery of man-made fibers. The subject embroidered motif fits squarely within the cited subheading.

COUNTRY OF ORIGIN

Pursuant to Section 334 of the Uruguay Round Agreements Act (codified at 19 USC Section 3592), new rules of origin were effective for textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. These rules were published in the Federal Register, 60 Fed. Reg. 46188 (September 5, 1995). Section 102.21, Customs Regulations (19 CFR Section 102.21), sets forth the general rules to determine country of origin. Thus, the country of origin of a textile product is determined by a hierarchy of rules set forth in paragraphs (c)(1) through (c)(5) of Section 102.21.

Section 102.21(c)(1) sets forth the general rule for determining the country of origin of a textile or apparel product when the good was wholly obtained or produced in a single country, territory, or insular possession. As the subject motif has not been wholly obtained or produced in a single country, territory, or insular possession, this section is inapplicable.

Section 102.21(c)(2) provides for instances where the country of origin of a textile or apparel product cannot be determined under Section 102.21(c)(1).

Section 102.21(c)(2) provides, in pertinent part:

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.

As stated above, the subject embroidered motif fits squarely within the subheading 5810.92, HTSUSA.

Section 102.21(e) provides, in pertinent part:

Specific rules by tariff classification. 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 (3) For embroidered badges, emblems, insignia, and the like, not comprised of multiple components, a change to subheading 5810.91 through 5810.99 from any other chapter, except from heading
5007, 5111 through 5113, 5208 through
5212, 5309 through 5311 5407 through
5408, 5512 through 5516, 5602, through
5603, 5608, 5903, 5907, 6001 through
6002, and provided that the change is the result of a fabric-making process.

In this case, the change to subheading 5810.92, HTSUSA, results from Heading 5407, HTSUSA, which is an excepted heading. Therefore, the tariff shift requirement of the Section 102.21(e) is not met, and Section 102.21(c)(2) is inapplicable.

Section 102.21(c)(3) provides for goods that have been wholly assembled (with certain enumerated exceptions) in a single country, insular possession, or territory or which are knit to shape. Section 102.21(c)(3) is therefore inapplicable to the subject merchandise as it has not been wholly assembled in a single country, insular possession, or territory, nor is it a knit to shape good.

Section 102.21(c)(4) provides the first multi-country rule. Section 102.21(c)(4), states the following:

Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or 3 of this section, the country of origin of the good is the single country, territory, or insular possession in which the most important assembly or manufacturing process occurred.

In this instance, the background fabric for the embroidered motif will be woven either in Thailand or Singapore; the fabric will then be transported to Viet Nam for manufacturing into the finished motif. When comparing the production of the fabric in Thailand or Singapore with the assembly operation performed in Viet Nam, it is Customs position that the making of the fabric is the most important manufacturing process. Consequently, in accordance with Section 102.21(c)(4), the country of origin of the subject motif is either Thailand or Singapore.

HOLDING:

The embroidered motif is classifiable in subheading 5810.92.1000, HTSUSA, which is the provision for embroidery in the piece, in strips or in motifs, of man-made fibers, badges, emblems, and motifs. The applicable rate of duty is 7.6 percent ad valorem and there is no textile restraint category.

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, you should contact your local Customs office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

The country of origin of the embroidered motif is Thailand or Singapore in accordance with Section 102.21(c)(4).

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, it is recommended that a new ruling request be submitted in accordance with 19 CFR 177.2.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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