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 NY Rulings > NY B86334 - NY B86409 > NY B86351

Previous Ruling Next Ruling
NY B86351




July 10, 1997

CLA-2-RR:NC:TA:351 B86351

CATEGORY: CLASSIFICATION

Mr. Raymond F. Sullivan, Jr.
Wilkie Farr and Gallagher
Three Lafayette Center
1155 21st Street, NW
Washington, D.C. 20036-3384

RE: Classification and country of origin determination for rayon embroidery thread; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Sullivan:

This is in reply to your letter dated June 6, 1997, requesting a classification and country of origin determination for embroidery thread which will be imported into the United States.

FACTS:

The subject merchandise consists of two-ply 100% rayon embroidery thread. We assume it is viscose rayon and that it is packaged/sold as embroidery thread for non-retail sale. The manufacturing operations for the embroidery thread are as follows:

1. Single 120 denier rayon yarn with 30-40 filaments with 2-3 turns per inch and an "S" twist is produced in China, Poland or Russia. (We assume the yarn is extruded in the same country from which it is sourced.)

2. In Korea the yarn is further twisted in the "S" direction, approximately 13-17 turns per inch, doubled into 2-ply yarns and twisted 12-15 turns per inch in the "Z" direction, steamed to set the twist and dyed and packaged on a one kilogram cone. The thread is then shipped to the United States for commercial use.

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the embroidery thread will be 5403.41.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for artificial filament yarn (other than sewing thread), not put up for retail sale...; other yarn, multiple (folded) or cabled; of viscose rayon. The rate of duty will be 9.1 percent ad valorem.

The embroidery thread falls within textile category designation 606. The designated textile and apparel categories may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. 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.

COUNTRY OF ORIGIN - 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 of the foreign materials 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) in pertinent part 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":

HTSUS Tariff shift and/or other requirements

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

As the embroidery thread is of heading 5403, and we assume it is extruded in a single country, that is, either China, Russia or Poland, as per the terms of the tariff shift requirement, country of origin is conferred in that source country.

HOLDING:

The country of origin of the embroidery thread is the country where it is extruded - China, Russia or Poland. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa.

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 sections states that a ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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.

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Jeff Konzet at 212-466-5885.

Sincerely,

Paul K. Schwartz
Chief, Textiles & Apparel Branch

Previous Ruling Next Ruling

See also: