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HQ 960580




October 22, 1997
CLA-2 RR:TC:TE 960580 jb

CATEGORY: CLASSIFICATION

TARIFF NO.: 5607.90.2000

Susan D. Klingbeil
IKEA
1105 North Market Street, Suite 1044
Wilmington, DE 19899

RE: Country of origin determination for cotton twine; Section 102.21(c)(4); most important manufacturing process

Dear Ms. Klingbeil:

This is in reply to your letter dated May 19, 1997, requesting a classification under the Harmonized Tariff Schedule of the United States (HTSUS) and country of origin determination for cotton twine which will be imported into the United States. A sample was received by this office for examination.

FACTS:

The subject merchandise, referenced SY cotton twine, article number 431 018 10, consists of 100 percent cotton braided twine. The manufacturing operations for the twine are as follows:

Thailand cotton yarn is made ( we assume this means it was "spun")

France cotton yarns of heading 5205 are braided to form twine

Sweden cotton twine is cut and packaged

ISSUE:

What is the proper classification and country of origin of the subject merchandise?

LAW AND ANALYSIS:

Classification

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order.

Heading 5607, HTSUS, provides for twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics. The subject merchandise is thus, properly classified in subheading 5607.90.2000, HTSUS.

Country of Origin

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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". As the subject merchandise was not wholly obtained or produced in a single country, section (c)(1) is not applicable.

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":

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 twine, classified in heading 5607, HTSUS, undergoes a change to this heading from heading 5205, HTSUS. As heading 5205, HTSUS is excepted by the terms of the tariff shift, section 102.21(c)(2) is inapplicable to the subject merchandise.

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.

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 considered manufacturing processes and not "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.

The Section 334 rules of origin for textile and textile apparel products (19 U.S.C. ?3592 (b)(1)) state, in pertinent part, that a textile or apparel product originates in a country and is the growth, product, or manufacture of that country if:

(B) the product is a yarn, thread, twine, cordage, rope, cable, or braiding and-

(i) the constituent staple fibers are spun in that country, territory or possession, or

(ii) the continuous filament is extruded in that country, territory or possession,

The section 334 rules explicitly state what is considered "important processing" in regard to this commodity. Accordingly, as per section 102.21(c)(4), the most important manufacturing process occurs at the time of the spinning of the fibers, that is, in Thailand.

HOLDING:

The subject merchandise is classified in subheading 5607.90.2000, HTSUSA, which provides for, twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics: other: other. The applicable rate of duty is 6.9 percent ad valorem and the quota category is 201.

The country of origin of the subject twine is Thailand.

The designated textile and apparel category may be subdivided into parts. If so, visa and quota requirements applicable to the subject merchandise may be affected. Since 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.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories applicable to textile merchandise, you should contact your local Customs office prior to importing the merchandise to determine the current status of any import restraints or requirements.

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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