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January 8, 1999

CLA?2-RR:NC:TA:351 D85955

CATEGORY: CLASSIFICATION

Mr. Rafael Hernandez
The Disney Store, Inc.
101 North Brand Boulevard, Suite 1000
Glendale, CA 91203-2671

RE: Classification and country of origin determination for labels; 19 CFR 102.21(c)(2); tariff shift; 19 CFR 12.130(c)

Dear Mr. Hernandez:

This is in reply to your letter received December 16, 1998, requesting a classification and country of origin determination for printed labels which will be imported into the United States.

FACTS:

The subject merchandise consists of printed labels in the piece. They are made from 100 percent polyester fabric which is woven to an approximate width of one inch.

The manufacturing operations for the labels are as follows:

In the United States long strips of 100 percent polyester ribbon are woven to an approximate width of one inch.

In China these strips are printed with a logo and returned to the United States.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the labels will be 5807.10.0520, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for labels, badges and similar articles of textile materials, in the piece, woven, labels of cotton or man-made fibers, other. The rate of duty will be 8.4 percent ad valorem.

The labels fall within textile category designation 669. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa.

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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

5807 The country of origin of a good classifiable under heading 5807 is the country, territory or insular possession in which the fabric comprising the good was formed by a fabric making process.

Accordingly, the merchandise complies with the tariff shift requirement for heading 5807, HTSUSA. The country of origin of the subject merchandise is thus, the single country where the fabric comprising the good was formed by a fabric making process, that is, the United States.

However, there is an exception to products from the United States that are sent abroad for processing. Section 12.130(c), Customs Regulations, provides that any product of the United States which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be considered a foreign article.

Section 12.130(c) which remains in effect was originally intended to be used to determine the country of origin of textiles and textile products for quota/visa requirements. In T.D. 90-17, issued February 23, 1990, Customs announced a change in practice and position. This change resulted in Customs using Section 12.130(c) for quota, duty, and marking purposes when making country of origin determinations for textile goods. Therefore, in accordance with T.D. 90-17 and Section 12.130(c), the country of origin of the labels made from U.S. polyester fabric is China, for quota, marking and duty purposes.

HOLDING:

The subject labels are classified in subheading 5807.10.0520, HTSUSA, which provides for labels, badges and similar articles of textile materials, in the piece, woven, labels of cotton or man-made fibers, other.

The country of origin of the labels is China. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa.

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 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 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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