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HQ 960802




October 27, 1997
CLA-2 RR:TC:TE 960802 jb

CATEGORY: CLASSIFICATION

TARIFF NO.: 5603.91.0090

Susan D. Klingbeil
Ikea Holding US, Inc
496 West Germantown Pike
Plymouth Meeting, PA 19462

RE: Country of origin determination for nonwoven iron on hem material; 19 CFR ?102.21(c)(2); tariff shift; 12.130(c)

Dear Ms. Klingbeil:

This is in reply to your letter dated May 19, 1997, requesting a country of origin determination for what is referred to as "631 485 00 SY iron on hem" which will be imported into the United States. A sample was submitted to this office for examination.

FACTS:

The subject merchandise consists of a nonwoven iron on strip material composed of 100 percent polyamide man-made staple fibers. The subject merchandise, a thermo-active material, measures approximately 1-1/4 inches wide and is 32 feet 8 inches long. The manufacturing operations are as follows:

United States material is formed and shipped in rolls measuring 100 meters in length and 100 centimeter widths to the Netherlands

Netherlands rolls are cut to narrower widths and shorter lengths as per the description above, and then repackaged for return shipment to the United States

ISSUE:

1. What is the classification of the subject merchandise?

2. What is the country of origin of the subject merchandise?

LAW AND ANALYSIS:

Classification

Classification of goods under the Harmonized Tariff Schedule of the United States Annotated (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 5603, HTSUS, provides for, among other things, nonwovens, whether or not impregnated, coated, covered or laminated. Accordingly, the subject nonwoven iron on strip material is properly classified in the appropriate provision in this heading, that is, subheading 5603.91.0090, 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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.

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:"

5602-5603 A change to subheading 5602 through 5603 from any heading outside that group, provided that the change is the result of a fabric-making process.

The subject merchandise is classifiable in subheading 5603.91.0090, HTSUS, which provides for nonwovens, whether or not impregnated, coated, covered or laminated: other: weighing not more than 25 g/mý: other. As the subject merchandise is formed by a fabric-making process, the country of origin of the merchandise is the country where that processing occurs, that is 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 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. The subject article is significantly advanced in value and improved in condition in the Netherlands once the process of cutting is performed on the rolls. It is the cutting of the material to the appropriate width and length which dedicates these articles to their specific use.

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 merchandise is the Netherlands for quota, duty and marking purposes.

HOLDING:

The subject merchandise, referenced style "631 485 00 SY iron on hem", is classified in subheading 5603.91.0090, HTSUS, which provides for nonwovens, whether or not impregnated, coated, covered or laminated: other: weighing not more than 25 g/mý: other. The applicable rate of duty is 5 percent ad valorem and the quota category is 223.

The country of origin of the subject merchandise is the Netherlands.

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
Commercial Rulings Division

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