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NY C89549

July 1, 1998

CLA-2-RR:NC:TA:351 C89549

CATEGORY: CLASSIFICATION

Mr. Joseph R. Hoffacker

Barthco Trade Consultants, Inc.

7575 Holstein Avenue

Philadelphia, PA 19153

RE: Clarification of NY Ruling C87233

Dear Mr. Hoffacker:

This Ruling letter is being issued to clarify certain issues which were the subject of NY ruling C87233. Ruling C87233 addressed the country of origin of yarn which will be shipped from either Canada, Korea, Japan, China, Taiwan or the United States to Macau, then braided in Macau and returned to the United States. This letter will address that portion of the letter which dealt with yarn of U.S. origin which was sent to Macau.

In our original letter we stated:

"In the case where yarn of U. S. origin is sent abroad for braiding, a different set of rules applies. Customs Regulations, Section 12.130 (c) (1) states:

'Chapter 98, Subchapter II, Note 2, Harmonized Tariff

Schedule of the United States, provides that any product of
the U.S. which is returned after having been advanced in
value or improved in condition abroad, or assembled abroad,
shall be a foreign article for the purposes of the Tariff

Act of 1930, as amended. In order to have a single
definition of the term 'product of' and, therefore, a single country of origin for a textile or textile product,
notwithstanding paragraph (b), merchandise which falls
within the purview of Chapter 98, Subchapter II, Note 2,

Harmonized Tariff Schedule of the United States, may not,
upon its return to the U.S., be considered a product of the

U.S.'

Section 102.21(c)(5) states that 'Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1),(2),(3), or (4) of this section, the country of origin of the good is the last country, territory, or insular possession in which an important assembly or manufacturing process occurred.' For the case of yarn of U.S. origin, braided in Macau, the last country of assembly or processing would be Macau. Macau is therefore, the country of origin of yarn of U.S. origin sent to Macau for braiding."

No reference to Section 102.21(c)(5) should appear in this context. This entire section should read:

"In the case where yarn of U. S. origin is sent abroad for braiding, a different set of rules applies. Customs Regulations, Section 12.130 (c) (1) states:

'Chapter 98, Subchapter II, Note 2, Harmonized Tariff

Schedule of the United States, provides that any product of
the U.S. which is returned after having been advanced in
value or improved in condition abroad, or assembled abroad,
shall be a foreign article for the purposes of the Tariff

Act of 1930, as amended. In order to have a single
definition of the term 'product of' and, therefore, a single country of origin for a textile or textile product,
notwithstanding paragraph (b), merchandise which falls
within the purview of Chapter 98, Subchapter II, Note 2,

Harmonized Tariff Schedule of the United States, may not,
upon its return to the U.S., be considered a product of the

U.S.'

For the case of yarn of U.S. origin which is braided in Macau, ('advanced in value...improved in condition abroad'), Macau becomes the originating country."

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

A copy of both the original ruling and this ruling, or their respective control numbers as 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,


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