United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1997 HQ Rulings > HQ 959805 - HQ 959939 > HQ 959917

Previous Ruling Next Ruling
HQ 959917





March 24, 1997
CLA-2 RR:TC:TE 959917 jb

CATEGORY: CLASSIFICATION

Judy Kearney
Network Brokers International, Inc.
Airport Industrial Office Park, Building C-1D 145th Avenue & Hook Creek Blvd.
Valley Stream, NY 11581

RE: Country of origin determination for balloon string made of polypropylene strip; 19 CFR ?102.21(c)(4); most important assembly or manufacturing process; section 12.130(c)

Dear Ms. Kearney:

This is in reply to your letter, dated October 16, 1996, on behalf of Berwick Industries Inc., requesting a country of origin determination for balloon string made of polypropylene strip which will be imported into the United States. A sample was submitted to this office for examination.

FACTS:

The subject item consists of 3/16 inch wide polypropylene strip which is sold as "balloon string". The manufacturing operations are as follows:

UNITED STATES
polypropylene resin is extruded into a 1-1/4 inch wide strip

CHINA
strip is slit to the final 3/16 inch width and cut to length ribbon is rolled up to form small disks approximately 1 inch in diameter and packed in polybags

UNITED STATES
disks are repackaged into smaller polybags on cards for retail sale

ISSUE:

What is the proper country of origin for 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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.

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." 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.

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":

5401-5406 A change to heading 5401 through 5406 from any other heading, provided that the change is the result of an extrusion process.

When the subject balloon string is in the form of a strip 3/16 inch in width it is classified in heading 5404, Harmonized Tariff Schedule of the United States. Although a tariff change does occur in China, it is not as a result of an extrusion process as required by the tariff shift, but as a result of a slitting process. As such, section 102.21(c)(2) is not applicable.

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;

(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 single country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is neither knit to shape nor wholly assembled in a single country, territory, or insular possession, Section 102.21(c)(3) is inapplicable.

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 balloon string the most important manufacturing process occurs at the time the plastic resin is extruded into the form of the strip, in the United States. However, 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 textile 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 requirement. In 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), the country of origin of the subject balloon string is China for quota, duty and marking purposes.

The marking statute (19 U.S.C. 1304) requires articles of foreign origin imported into the U.S. to be marked to indicate the name of the country of origin of the article. In the case of the subject balloon string, "Made in China of U.S. Ribbon" is an acceptable marking for this product.
HOLDING:

The country of origin of the subject balloon string 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

This section states that a 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

Previous Ruling Next Ruling

See also: