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NY B83273




April 4, 1997

CLA-2-RR:NC:TA:352 B83273

CATEGORY: CLASSIFICATION

Ms. Lois H. Caron
The Caron Collection
67 Poland Street
Bridgeport, Connecticut 06605

RE: Classification and country of origin determination for a needlecraft set of woven fabric and yarn put up in packings for retail sale; 19 CFR 102.21(c)(2); tariff shift

Dear Ms. Caron:

This is in reply to your letter dated March 13, 1997, requesting a classification and country of origin determination for a needlecraft set put up for retail sale which will be imported into the United States.

FACTS:

The subject merchandise consists of needlecraft set put up in packings for retail sale. It contains a rectangular swatch of bleached plain woven cotton fabric, cotton thread, embroidery needles, printed instructions, and an unprinted card and envelope. The kit will be packed in England in packing ready for retail sale. The various components of the set will be manufactured in a variety of countries. The printed instructions, the unprinted greeting card, envelope and the embroidery needles are produced in England, the hand-dyed variegated cotton thread is manufactured in the United States, the solid color cotton thread is manufactured in France and the plain woven fabric is woven in Germany. The use of the kit involves the embroidering of the fabric with a complex design as specified in the instructions and using this embroidered tapestry to decorate the greeting card or for display purposes.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the needlecraft kit will be 6308.00.0020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for needlecraft sets of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered tablecloths or napkins, or similar textile articles, put up in packings for retail sale, other. The rate of duty will be 12.5 percent ad valorem.

However, although the needlecraft set has been determined to be classifiable in subheading 6308.00.0020, HTS, the United States produced yarn which forms one component of the set may be exempted from duty under subheading 9801.00.10, HTS, as a product of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. The fact that the yarn has been packed with other items in a set does not preclude the United States manufactured yarn from classification in 9801.00.10, HTS. That is to say, the United States produced yarn may be separately classified in subheading 9801.00.10, HTS, free of duty upon compliance with the documentary requirements of Section 10.1 of the Customs Regulations.

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

6308 The country of origin of a good classifiable under heading 6308 is the country, territory, or insular possession in which the woven fabric component of the good was formed by a fabric-making process.

As the fabric in this needlecraft set was woven in a single country, that is, Germany, as per the terms of the tariff shift requirement or rule specified for heading 6308, HTS, country of origin is conferred in Germany.

HOLDING:

The country of origin of the needlecraft set is Germany. It is classifiable in subheading 6308.00.0020, HTS, with a duty rate of 12.5 percent ad valorem. However the United States produced yarn is separately classifiable under subheading 9801.00.10, HTS, which is free of duty.

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 Alan Tytelman at 212-466-5896.

Sincerely,

Paul K. Schwartz
Chief, Textile and Apparel Branch

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