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NY C86155


June 17, 1998

CLA-2-RR:NC:TA:350 C86155

CATEGORY: CLASSIFICATION

Mr. Peter Jay Baskin

Sharretts, Paley, Carter & Blauvelt, P.C.

Sixty-seven Broad Street

New York, NY 10004

RE: Classification and country of origin status for a laminated material produced in the United States from Canadian and U.S. components. U.S.. 19

Dear Mr. Baskin:

This is in reply to your letters dated April 2 and June 3rd, 1998, on behalf of Wolverine World Wide, Inc. which concerns the country of origin and classification of a woven fabric of Canadian origin which will be imported into the United States and then laminated with U.S. supplied components. Samples were furnished with the subsequent letter from Mr. Paley.

FACTS:

According to your correspondence, a woven fabric of Canadian manufacture will be imported into the United States. You indicate in your letter that this fabric is composed of a 50% acrylic/50% polyester man-made fiber blend. This particular sample is of a yarn dyed plaid fabric with a slightly brushed top surface. In the United States, the Canadian material is laminated with a U.S. - made polyurethane foam and a plain woven fabric of 100% polyester man-made fibers. The U.S. fabric is of woven construction and not of a tricot knit, as indicated in your letter (the particular fabric construction would not affect the outcome of the ruling). The materials are laminated together using a flame treatment; no adhesives would be required.

The Canadian fabric will make up the face of the material and the U.S. polyester the back. The plastic foam, in the middle, would be a non-clickable type and measures about 1/16" in thickness. The overall material measures about 1/8" thick.

This laminated material will be ultimately exported to the Dominican Republic where it will be combined with other materials of U.S. origin to produce finished footwear for exportation back to the United States.

CLASSIFICATION:

The applicable subheading for the Canadian supplied fabric is 5512.99.0005, Harmonized Tariff Schedules of the United States Annotated (HTSUSA), which provides for woven fabrics of synthetic staple fibers, containing 85 percent by weight of synthetic staple fibers, ... of yarns of different colors. The general rate of duty is 15 percent ad valorem. The laminated material manufactured in the U.S. is classifiable under HTS subheading 5903.20 as textile fabrics laminated, with polyurethane plastic.

ISSUE:

What is the country of origin of the laminated material as processed in the U.S.?

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."

Since the Canadian supplied fabric is further processed in the U.S. paragraph (c) (1) is inapplicable since the material is not produced in a single country or territory, etc. 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 the 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

5901 - 5903 A change to heading 5901 through 5903 from any other heading, including a heading within that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5803, 5806, 5808, and 6002, and provided that the change is the result of a fabric-making process.

The Canadian woven fabric does not under go a tariff shift or meet the definition of fabric making process as outlined in CFR§102.21 (b) (2), which states "a fabric making process is any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric."

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.

While the subject material is not knit, but was wholly assembled in a single country, i.e., the U.S., Section 102.21 (c)(3)(ii) is applicable.

HOLDING:

The country of origin of the laminated material is the United States. This 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 C.F.R. §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 C.F.R. §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 C.F.R. §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 George Barth at 212-

466-5884.

Sincerely,


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