HQ 959472 - Country of origin of embroidered fabric; Section 102.21(c)(2), Customs Regulations - United States International Trade Commision Rulings

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HQ 959472

September 24, 1996

CLA-2 RR:TC:TE 959472 CAB

CATEGORY: CLASSIFICATION

Connie Knuenz
The Austrian Trade Commission
In the United States
150 East 52nd Street
32nd Floor
New York, NY 10022-6017

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

Dear Ms. Knuenz:

This is in response to your inquiry of July 8, 1996, requesting a country of origin determination for embroidered fabric pursuant to Section 102.21, Customs Regulations. Fabric samples were submitted for examination.

FACTS:

The fabric at issue is 100 percent embroidered cotton fabric that is woven in China. This cotton fabric is transported to Austria where it is embroidered with yarns from Switzerland. You state that eventually these yarns will be sourced in Austria. The fabric is also bleached and cut in Austria. At importation into the United States, the fabric measures 51 inches by 10 or 15 yards.

ISSUE:

I. What is the country of origin for the subject fabric?

2. Whether a certificate of origin is requested when the subject merchandise is imported into the United States?

LAW AND ANALYSIS:

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Agreements Act (codified at 19 USC Section 3592), new rules of origin were effective for textile products entered, or withdrawn from warehouse, for consumption on or after July 1, 1996.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 is wholly obtained or produced in a single country, territory, or insular possession. As the subject embroidered fabric is not wholly obtained or produced in a single country, territory, or insular possession, Section 102.21(c)(1) 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 paragraph (c)(1) of this section. Section 102.21(c)(2) states:

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.

Section 102.21(e) states "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.

Heading 5810 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), is the provision for embroidery in the piece, in strips or in motifs. In this instance, the subject embroidered fabric fits within the purview of Heading 5810, HTSUSA. Specifically, the subject material is classifiable in subheading 5810.91, HTSUSA, which provides for other embroidery of cotton.

As the embroidered fabric is not wholly obtained or produced in a single country, we must apply Section 102.21(c)(2) and the applicable requirement of Section 102.21(e) to the proposed scenario to determine the country of origin of the subject goods. Pursuant to the applicable provisions of Section 102.21(e), the country of origin of the subject embroidered fabric is China, the country where the fabric was formed by a fabric-making process. This determination is in accordance with Headquarters Ruling Letter (HRL) 959340, dated July 10, 1996, where Customs determined that the country of origin of embroidered cotton fabric woven in China and embroidered in Thailand, was China, the country where the fabric was woven.

You also question whether a certificate of origin is requested when the subject merchandise is imported into the United States. Pursuant to Section 181.22, Customs Regulations, a certificate of origin is used to certify that a good being exported from a North American Free Trade Agreement (NAFTA) signatory (United States, Mexico, Canada) qualifies as an originating good for purposes of preferential tariff treatment under the NAFTA. In this instance, the subject embroidered fabric is not being exported from a NAFTA signatory nor is preferential duty treatment requested, therefore, a certificate of origin is not required at the time of importation.

HOLDING:

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 section 19 CFR 177.9(b)(1). This section states that 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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