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NY D85732




December 17, 1998

CLA-2-56:RR:NC:TA:351 D85732

CATEGORY: CLASSIFICATION

TARIFF NO.: 5606.00.0090

Mr. Frank Prackler
Harold I. Pepper Co., Inc.
181 South Franklin Avenue, Suite 218
Valley Stream, NY 11581

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

Dear Mr. Prackler:

This is in reply to your letter dated December 7, 1998, requesting a classification and country of origin determination of chenille yarn which will be imported into the United States for the account of Flastex, Inc.

FACTS:

The subject merchandise consists of chenille yarn, composed of 100 percent cotton. The cotton is a manufacture of Australia. This yarn is then shipped to Indonesia and further manufactured into chenille yarn.

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

In Australia the raw cotton is spun into a twisted, plied yarn and wound onto bobbins. The yarn is then shipped to Indonesia where it is placed on a creel and fed into a chenille machine where it is twisted with two ends at the same time with a third end to its final (chenille) state and then wound on cones for shipment.

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.

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 Section 334 of that Act (codified at 19 U.S.C 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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

5605-5 606 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 Indonesia, 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 Australia.

HOLDING:

The country of origin of the chenille yarn is Australia.

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,

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