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HQ 959725




October 23, 1996
CLA-2 RR:TC:TE 959725 jb

CATEGORY: CLASSIFICATION

Daniel K. Astin, Esq.
Donohue and Donohue
232 South Fourth Street
Philadelphia, PA. 19106

RE: Country of origin determination for elastic tie downs, twine and ropes; Section 102.21(c)(1); wholly obtained or produced; Section 102.21(c)(2); tariff shift; 102.21(c)(4); most important manufacturing process

Dear Mr. Astin:

This is in reply to your letter dated September 9, 1996, on behalf of your client, the Lehigh Group of Allentown, Pennsylvania., requesting a country of origin determination for elastic tie downs, twine and ropes which will be imported into the United States.

FACTS:

The subject merchandise consists of a variety of elastic tie downs, twine and ropes, made of either cotton blends or synthetic materials. You state many of the articles are braided in some way. The articles have a variety of industrial, marine or household uses; the end use will dictate both the component materials used in the finished product and the method of manufacture. All of the articles may be substantially produced and finally manufactured in Country X.

The manufacturing operations for the subject merchandise are as follows:

A. ELASTIC TIE DOWNS

The subject elastic tie downs will be produced using natural rubber strands as a core material and nylon or polypropylene strands braided around the rubber strands as an outer jacket material. The number of rubber strands grouped together to form the core material will vary depending on the desired diameter to be achieved in production, and is directly correlated to the overall elasticity and strength of the article.

Scenario I

COUNTRY A

- natural rubber is extruded for core material.

COUNTRY B

- nylon fibers are spun into yarn for jacket material.

COUNTRY X

- the rubber strands are fed into the center of a braider without braiding or twisting;
- the nylon jacket material is braided circumferentially around the unbraided and untwisted rubber core creating a solid elongated tubular piece of material, commonly known as the "cord"; - cord is cut into desired lengths;
- hooks (manufactured in Country X from wire produced and coated in Country C) are attached uniformly on opposite ends of the cord;
- labels are attached and clear poly-vinyl-chloride heat shrunk sleeves (sourced in Country C as part of the packaging) may be placed on the ends of the elastic tie downs.

Scenario II

COUNTRY A

- natural rubber is extruded for core material.

COUNTRY C or COUNTRY E

- polypropylene yarns are extruded for jacket material.

COUNTRY X

- same production as Scenario I except that the jacket material consists of polypropylene yarns.

* You state in your letter that the yarns and the natural rubber core materials weigh more than seven percent of the total weight of the good and thus do not qualify as De Minimis, as per Section 102.13.

B. TWINE

Twine articles may be categorized as seine twine, cable cord, butcher cord and household twine.

Scenario I- Seine Twine

COUNTRY B OR UNITED STATES

- nylon fibers are spun into yarn.

COUNTRY X

- a number of nylon yarn strands are twisted together once in one direction creating one ply; three plies are then twisted together in the opposite direction.

Scenario II- Cable Cord

COUNTRY C

- fabrics (which may come from a variety of countries) are garnetted and the reclaimed fibers are spun together into cotton-polyester-rayon blend yarns.

COUNTRY X

- a number of cotton-poly-rayon yarn strands are twisted together once in one direction creating one ply; three plies are then twisted together in the opposite direction.

Scenario III- Household Twine and
Butcher Cord

COUNTRY C

- fabrics (which may come from a variety of countries) are garnetted and the reclaimed fibers are spun together into cotton-polyester-rayon blend yarns.

COUNTRY X

- strands are plied and twisted together.

C. ROPE

The majority of braided articles will be produced in Country X of polyester, polypropylene, nylon, cotton-polyester-rayon blend and rayon yarns. Almost all of the articles consist of an outer jacket and an inner core material.

Possible Variations

1. NYLON CORD

Scenario I

COUNTRY B

- nylon fibers are spun into yarn for jacket.

COUNTRY C

- polyester is extruded into yarn for core.

COUNTRY X

1. outer jacket is braided circumferentially around the inner core;
2. braided article is cut to length;
3. braided article is packaged in one of two ways: a. articles are coiled; b. placed in labeled bags and sealed; c. articles (approximately 6 to 12) are placed in a box ready for export; or
a. articles are hanked; b. placed in plastic shrink wrap and labeled; c. articles are boxed.

Scenario II

UNITED STATES

- nylon fibers are spun into yarn for jacket.

COUNTRY C

- polyester is extruded into yarn for core.

COUNTRY X

- same operations as stated in Country X above.

Scenario III

COUNTRY B

- nylon fibers are spun into yarn for jacket.

COUNTRY C AND COUNTRY F

- polyester is extruded into yarn and nylon is extruded into yarn for core combination.

COUNTRY X

- same operations as stated in Country X above.

Scenario IV

UNITED STATES

- nylon fibers are spun into yarn for jacket.

COUNTRY C AND COUNTRY F

- polyester is extruded into yarn and nylon is extruded into yarn for core combination.

COUNTRY X

- same operations as stated in Country X above.

Scenario V

COUNTRY B

- nylon fibers are spun into yarn for jacket.

COUNTRY C

- rayon is extruded into yarn for core.

COUNTRY X

- same operations as stated in Country X above.

Scenario VI

UNITED STATES

- nylon fibers are spun into yarn for jacket.

COUNTRY C

- rayon is extruded into yarn for core.

COUNTRY X

- same operations as stated in Country X above.

Scenario VII

COUNTRY B

- nylon fibers are spun into yarn for jacket.

COUNTRY X

- polyester is extruded into yarn for core; - same operations as stated in Country X above.

2. ALL PURPOSE CORD

Scenario I

COUNTRY C

- cotton-polyester-rayon fibers are spun into a yarn for jacket;
- polyester is extruded into yarn for core.

COUNTRY X

- same operations as stated in Country X, scenario I of the nylon cord production .

Scenario II

COUNTRY C

- cotton-polyester-rayon fibers are spun into a yarn for jacket.
- rayon is extruded into yarn for core.

COUNTRY X

- same operations as stated in Country X above.

3. BRAIDED POLYESTER

Scenario I

COUNTRY E

- polyester is extruded into yarn for jacket.

COUNTRY C

- polyester is extruded into yarn for core.

COUNTRY X

- same operations as stated in Country X above.

Scenario II

COUNTRY E

- polyester is extruded into yarn for jacket.

COUNTRY C AND COUNTRY F

- polyester is extruded into yarn and nylon is extruded into yarn for core combination.

COUNTRY X

- same operations as stated in Country X above.

Scenario III

COUNTRY C

- polyester is extruded into yarn for jacket; - polyester is extruded into yarn for core.

COUNTRY X

-same operations as stated in Country X above.

4. ALL-PURPOSE CLOTHESLINE

Scenario I

COUNTRY C

- cotton-polyester-rayon fibers are spun into a yarn for jacket;
- rayon is extruded into yarn for core.

COUNTRY X

- same operations stated in Country X above.

5. BRAIDED NYLON MASON'S LINE (no core in this product)

Scenario I

UNITED STATES

- nylon fibers are spun into yarn.

COUNTRY X

- strands are braided together.

Scenario II

COUNTRY B

- nylon fibers are spun into yarn.

COUNTRY X

- strands are braided together.

Scenario III- Braided rope produced wholly of polypropylene

COUNTRY X

- polypropylene strands are extruded into yarn; - strands are braided together.

We assume any reference to Countries A, B, C, E, F and X do not include Israel or a NAFTA party.

ISSUE:

What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) 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) 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". In the case of the braided nylon mason's line, in scenario III, all of the manufacturing operations occur in Country X. Accordingly, as the subject rope is wholly obtained or produced in a single country, Country X, the country of origin is Country X. Section 102.21(c)(1) is inapplicable for the other products at issue because the manufacturing operations occur in more than one country.

Section 102.21(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."

Section 102.21(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":

5604 If the textile component is of continuous filaments, including strips, a change of those filaments, including strips, to heading 5604 from any other heading, except from heading 5001 through 5007, 5401 through 5408, and 5501 through 5502, and provided that the change is the result of an extrusion process.

If the textile component is of staple fibers, a change of those fibers to heading 5604 from any other heading, except from heading 5004 through 5006, 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided that the change is the result of a spinning process.

5607 If the good is of continuous filaments, including strips, a change of those filaments, including strips, to heading 5607 from any other heading, except from heading 5001 through 5007, 5401 through 5406, and 5501 through 5511, and provided that the change is the result of an extrusion process; or

If the good is of staple fibers, a change of those fibers to heading 5607 from any other heading, except from heading 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided that the change is the result of a spinning process.

The subject elastic tie downs are classified in heading 5604, HTSUS, and the twine and rope are classified in heading 5607, HTSUS. In the case of the elastic tie downs, the core material is made from natural rubber and the outer jacket is made from the textile materials. For both headings 5604 and 5607, HTSUS, the tariff shift directs us to either an extrusion process or a spinning process in determining country of origin. In scenario I, as the nylon yarns are spun for the jacket material in Country B, the country of origin is conferred in Country B. In scenario II, as the polypropylene yarns are extruded for the jacket material in Country C or Country E, the country of origin is conferred in Country C or Country E.

In the case of the seine twine in scenario I, as the nylon yarns are spun in Country B or the United States, country of origin is conferred in either Country B or the United States. In scenarios II and III, for the cable cord, household twine and butcher cord, as the reclaimed fibers are spun into a cotton-polyester-rayon blend yarn in Country C, the country of origin is conferred in Country C.

In the case of the rope, depending on the specific article, different scenarios present themselves. For the nylon cord in scenarios I through VII, there is both an extrusion process and a spinning process occurring in two different countries. Similarly, in the case of the braided polyester rope in scenarios I and II, there is an extrusion process occurring in two different countries. As such, the tariff shift is not applicable in either the case of the nylon cord in scenarios I through VII and the braided polyester rope in scenarios I and II. In the case of the all purpose cord in scenarios I and II, there is a spinning process and an extrusion process occurring in Country C. Accordingly, country of origin is conferred in Country C. In the case of the braided polyester in scenario III, there are two extrusion processes occuring in Country C. Accordingly, country of origin is conferred in Country C. In the case of the all purpose clothesline, there is a spinning process and an extrusion process occurring in Country C. Accordingly, country of origin is conferred in Country C. In the case of the braided nylon mason's line, in scenario I, as the nylon is spun in the United States, country of origin is conferred in the United States. In scenario II, as the nylon is spun in Country B, country of origin is conferred in Country B.

However, in the case of the twine in scenario I, where the nylon yarns are spun in the United States and further processed in Country X, and in the case of the braided nylon mason's line in scenario I, where the nylon is spun in the United States and further processed in Country X, there is an exception to products from the United States that are sent abroad for processing. Section 12.130(c), Customs Regulations, provides that any product of the United States which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article.

Section 12.130 which remains in effect was originally intended to be used to determine the country of origin of textiles and textile products for quota/visa requirements. In Treasury Decision (T.D.) 90-17, issued February 23, 1990, Customs announced a change in practice and position. This change resulted in Customs using Section 12.130 for quota, duty and marking purposes when making country of origin determinations for textile goods. Therefore, in accordance with T.D. 90-17 and Section 12.130(c), in the case of the twine in scenario I and the nylon mason's line in scenario I, the country of origin is Country X.

Section 102.21(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.

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.

In the remaining scenarios, namely the nylon cord in scenarios I through VII and the braided polyester rope in scenarios I and II, as the subject rope is not knit to shape, provision (i) of Section 102.21(c)(3) is not applicable. Additionally, as the processes of twisting and/or braiding are not considered "assembly" operations as per the terms of section 102.21, provision (ii) is also not applicable. Accordingly, the subject merchandise does not satisfy paragraph (c)(3).

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 remaining scenarios, that is, the nylon cord in scenarios I through VII and the braided polyester rope in scenarios I and II, the most important manufacturing process occurs at the time of the braiding of the yarn around the core to form the completed rope. As such, the country of origin of the subject rope is the single country in which that operation occurs, that is, Country X.

HOLDING:

The country of origin of the subject elastic tie downs in scenario I is Country B. In scenario II, the country of origin is Country C or Country E.

The country of origin of the subject twine in scenario I is Country B, where the nylon yarns are spun in Country B. Where the nylon yarns are spun in the United States and sent to Country X for processing, the country of origin is Country X. In scenarios II, for the cable cord, and scenario III, for the household twine and butcher cord, the country of origin is Country C.

The country of origin of the subject rope is as follows: for the nylon cord in scenarios I through VII, the country of origin is Country X; for the all purpose cord in scenarios I and II, the country of origin is Country C; for the braided polyester rope, in scenarios I and II, the country of origin is Country X, in scenario III, the country of origin is Country C; for the all purpose clothesline, the country of origin is Country C; for the braided nylon mason's line, in scenario I the country of origin is the United States, in scenario II the country of origin is Country B; for the wholly polypropylene rope, the country of origin is Country X.

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

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