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HQ 959523




November 13, 1996

CLA-2 RR:TC:TE 959523 NLP

CATEGORY: CLASSIFICATION

Mr. Stephen W. Marlow
Tower Group International
205 West Service Road
Champlain, NY 12919

RE: Classification and country of origin determination of contact lens cleaning discs for polishing machines; Legal Note 7(b) to heading 5911; subheading 5911.90; Section 102.21(c)(4)

Dear Mr. Marlow:

This is in response to your letter dated July 10, 1996, on behalf of your client, Itochu Canada Limited, requesting the classification of contact lens cleaning discs for polishing machines under the Harmonized Tariff Schedule of the United States (HTSUS). In addition, you requested a country of origin determination for these articles. Samples of the articles were provided for our examination.

FACTS:

The articles at issue are discs that measure 1.5 inches in diameter and are made of a multifilament circular knit fabric composed of 50% nylon and 50% polyester. In the United States, the discs are fitted onto polishing machines and are used to polish contact lenses. The manufacturing operations for the discs are as follows:

JAPAN

Textile fabric is formed

CANADA

Layer rolls of fabric and slit them into large squares Cut the fabric into small circles of 1.5 inches each Pack the discs

ISSUES:

What is the classification of the discs?

What is the country of origin of the discs?

LAW AND ANALYSIS:

ISSUE #1- CLASSIFICATION OF THE POLISHING DISCS

Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1 requires that classification be determined according to the terms of the chapter notes and, unless otherwise required, according to the remaining GRI's. Where 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's may be applied, taken in order.

Heading 5911, HTSUS, provides for "Textile products and articles, for technical uses, specified in note 7 to this chapter." Legal Note 7(b), to Chapter 59, HTSUS, provides that heading 5911, HTSUS, applies to :

(b) Textile articles (other than those of heading 5908 to 5910) of a kind used for technical purposes (for example, textile fabrics and felts, endless or fitted with linking devices, of a kind used in papermaking or similar machines (for example, for pulp or asbestos-cement), gaskets, washers, polishing discs and other machinery parts).

Polishing discs are provided for as specific exemplars in the above Legal Note. As the subject article is a disc that will be used in a polishing machine to polish contact lenses, it is of a class or kind with those described in Legal Note 7(b), to Chapter 59, HTSUS. Therefore, the disc is classifiable within heading 5911, HTSUS. Specifically, the disc is classified in subheading 5911.90.00, HTSUS, which provides for "Textile products and articles, for technical uses, specified in note 7 to this chapter: Other: Other."

ISSUE #2- COUNTRY OF ORIGIN DETERMINATION

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act, codified in 19 U.S.C. 3925, 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.

Section 102.21(c)(1) sets forth the following: "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.

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

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:"

5911.90 (3) If the good is a made up article other than a good of yarn, rope, cord, or braid, a change to subheading 5911.90 from any heading, including a change from another good of heading 5911, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

Section 102.21(b)(6) defines wholly assembled as :

The term "wholly assembled" when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as "wholly assembled" in a single country, territory, or insular possession.

While the polishing disc is a made up article and the change to subheading 5911.90, HTSUS, is from another heading, the change is not a result of the good being wholly assembled in a single country. The change to this subheading is as a result of the fabric being cut into circular discs and the discs cannot be considered to be "wholly assembled" pursuant to the above definition, as each disc consists of only one component. Therefore, Section 102.21(c)(2) is inapplicable and our hierarchical application of Section 102.21(c) continues.

Paragraph (c)(3) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

The subject article is not knit to shape and provision (i) of Section 102.21(c)(3) is not applicable. Provision (ii) of Section 102.21(c) is also not applicable because the subject article does not meet the definition of "wholly assembled", which requires that the good consist of at least two components.

Section 102.21(c)(4) states that, "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 the case of the subject disc, the most important manufacturing process occurs at the time of the fabric making. Consequently, the country of origin of the subject article is Japan, as that is the country where the fabric is formed.

HOLDING:

The polishing disc is classified in subheading 5911.90.0080, HTSUS. The rate of duty is 6.8% ad valorem.

The country of origin of the disc is Japan.

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 C.F.R. 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 C.F.R. 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 C.F.R. ?177.2.

Sincerely,

John Durant, Director
Tariff Classification Appeals

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