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 > 1998 NY Rulings > NY C85108 - NY C85176 > NY C85128

Previous Ruling Next Ruling
NY C85128




March 27, 1998

CLA-2-56:RR:NC:TA:351 C85128

CATEGORY: CLASSIFICATION

TARIFF NO.: 5606.00.0090

Mr. Tom Galphin
Geotri, Inc.
5960 Fairview Rd., Suite 420
Charlotte, NC 28210

RE: Classification and country of origin determination for chenille yarn: 19 CFR 102.21(c)(4)

Dear Mr. Galphin:

This is in reply to your letter dated February 17, 1998, requesting a classification and country of origin determination for chenille yarn which will be imported into the United States. You also requested information on the documentary requirements for entry of this merchandise into the United States.

FACTS:

The subject merchandise consists of chenille yarn, composed of 100 percent rayon fiber. The spun rayon yarn, NE 30/1, is a manufacture of Thailand. This yarn is then shipped to Korea and further manufactured into chenille yarn.

The manufacturing operations for the chenille yarn were described as follows:

"Make loop the spun yarn by twisting machine and cutting the both edges of the loop properly according to the needing yarn count"

The description for this manufacturing process was provided by the Korean producer of the chenille yarn.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the chenille yarn will be 5606.00.0090, Harmonized Tariff Schedule of the United States (HTS), which provides for ... chenille yarn. The duty rate will be 10.1 percent ad valorem.

This merchandise falls within textile category designation 201. Based upon international textile trade agreements products of Thailand are subject to visa requirements. 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

5605-5606 If the good is of staple fibers, a change of those fibers to heading 5605 through 5606 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 a result of the spinning process."

Section 102.21(e) states that the change must be as a result of a spinning process. Accordingly, as the chenille yarn does not undergo such a process in Korea, Section 102.21(c)(2) is inapplicable.

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.

As the subject merchandise is neither knit, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable.

Section 102.21(c)(4) states that "Where the country of origin of a textile aor 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 merchandise, the spinning of the fiber into yarn constitutes the most important assembly process. Accordingly, the country of origin of the chenille yarn is Thailand.

HOLDING:

The country of origin of the chenille yarn is Thailand. Based upon international textile trade agreements products of Thailand require a visa.

The visa must be issued by the Government of Thailand or its designated issuing authority in category 201. Customs Telex 02036, dated February 18, 1987 states in part "Visas issued in calendar year 1986 or later, by countries which the Commerce Department has notified Customs have agreed to use the standard 9-digit visa number, must have a visa number which matches the calendar year in which the shipment was exported from that country...In this regard, the first digit of the 9-digit number must be a "6" if the calendar year of export was 1986 and a "7" if exported on or after January 1, 1987. The date of issuance does not have to match the year of export...(e.g.) A visa may be accepted if the merchandise was exported on December 27, 1986, the visa number was 6TW123456, and the date the visa was issued was January 2, 1987."

Further noted is Customs Regulation 12.130(i) which states "For quota, visa or export license requirements, and statistical purposes, the date of exportation for textile or textile produces, subject to section 204, Agricultural Act of 1956, as amended, shall be the date the vessel or carrier leaves the last port in the country of origin, as defined by this section. Contingency of diversion in another foreign territory or country shall not change the date of exportation for quota, visa or export license requirements or for statistical purposes."

Only an original visa (or properly issued visa waiver) will be accepted for purposes of entry of the merchandise into the United States.

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, either directly, or 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 Camille Ferraro at 212-466-5885.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: