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CLA?2-RR:NC:TA:349 B82292

CATEGORY: CLASSIFICATION

Mr. Peter J. Fitch
Fitch, King and Caffentzis
116 John Street
New York, NY 10038

RE: Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for blankets; 19 CFR 102.21(c)(2); tariff shift; Article 509

Dear Mr. Fitch:

This is in reply to your letters dated February 6 and 25, 1997, on behalf of NOVATEXTIL RIVERA HNOS y ASOS. S.A. DE C.V., requesting a classification, status under the NAFTA and country of origin determination for blankets which will be imported into the United States.

FACTS:

The subject merchandise consists of an 85 percent acrylic and 15 percent polyester woven blanket. A sample of the blanket was not submitted. The manufacturing operations for the blanket are as follows:

Germany:
-acrylic staple fiber or acrylic filament tow is manufactured and exported to Mexico.

Mexico:
-acrylic fiber and polyester fiber of Mexican origin are spun into yarn.
-the blended yarn is woven into fabric.
-fabric is printed with various designs and napped. -fabric is cut and sewn into blankets.

ISSUE:

What are the classification, eligibility under NAFTA and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the blanket will be 6301.40.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for blankets (other than electric blankets) and traveling rugs, of synthetic fibers: woven. The general rate of duty will be 11.6 percent ad valorem.

NAFTA ELIGIBILITY:

The subject blanket undergoes processing operations in Mexico, which is a country provided for under the North American Free Trade Agreement (NAFTA). General Note 12, HTSUSA, incorporates Article 401 of the North American Free Trade Agreement (NAFTA) into the HTSUSA. Note 12(a) provides, in pertinent part:

(ii) Goods that originate in the territory of a NAFTA party under subdivision (b) of this note and that qualify to be marked as goods of Mexico under the terms of the marking rules... and are entered under a subheading for which a rate of duty appears in the "Special" subcolumn followed by the symbol "MX" in parentheses, are eligible for such duty rate... .

Accordingly, the blanket at issue will be eligible for the "Special" "MX" rate of duty provided it is a NAFTA "originating" good under General Note 12(b), HTSUSA, and it qualifies to be marked as a good of Mexico. Note 12(b) provides, in pertinent part:

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if??

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that??

(A) except as provided in subdivision (f) of this note, each of the non?originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or, (B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or

The creation of the woven fabric from staple fibers or filament tow converts the foreign fiber into an originating material. As the subject blanket is made entirely in the territory of Mexico using materials which themselves were originating, it meets the criteria set out in General Note 12(b)(iii). Accordingly, the blanket qualifies as a good originating in the territory of a NAFTA party. Assuming that the blanket qualifies to be marked as a good of Mexico, it is entitled to the special "MX" duty rate, provided that a Certificate of Origin is completed and submitted in accordance with 19 CFR 181.11.

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 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

6301-6306 The country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric making process.

As the fabric comprising the blanket is formed in a single country, that is, Mexico, as per the terms of the tariff shift requirement, country of origin is conferred in Mexico.

HOLDING:

The subject blanket is classified in subheading 6301.40.0010, HTSUSA, which provides for blankets (other than electric blankets) and traveling rugs, of synthetic fibers, woven.

The country of origin of the blanket is Mexico. It will be entitled to the NAFTA "MX" special duty rate of 4.5 percent ad valorem upon compliance with all applicable laws, regulations and agreements.

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 181.100(a)(2). 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 181 of the Customs Regulations (19 C.F.R. 181). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 181.100(a)(2), 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 and the NAFTA eligibility. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted.

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 John Hansen at 212-466-5854.

Sincerely,

Paul K. Schwartz
Chief, Textiles & Apparel Branch

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