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July 20, 1999

CLA-2-61:RR:NC:3:353 E83340

CATEGORY: CLASSIFICATION

TARIFF NO.: 6117.10.2030, 6117.80.9540, 6214.30.0000

Ms. Ellen A. Sankin
Soller, Shayne & Horn
46 Trinity Place
New York, NY 10006

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), Article 509, country of origin determination, 19 CFR 102.21 (c)(2) and (c)(5), eligibility for Tariff Preference Levels (TPL), for knit and woven scarves, and a headband/collar.

Dear Ms. Sankin:

In your letter dated June 11, 1999, on behalf of Toujours Elegant, you requested a ruling on the classification, status under the NAFTA, country of origin and Trade Preference Levels (TPL) for knit and woven scarves, and a headband/collar.

FACTS:

DESCRIPTION:

The submitted samples are a Coat Scarf – 90 Series, Fashion Scarf – 10 Series, and Faux Fur Headband/Collar – Style Ranges, 77 and 78 which consists of a scarf and a headband/collar.

The Coat Scarf – 90 Series is a lined triangular scarf consisting of woven 100% polyester fabric that is lined with knit 50% polyester/50% cotton fabric. The scarf measures approximately 17x17x17 inches and features a hook and loop closure.

The Fashion Scarf – 10 Series is a triangular scarf consisting of woven 100% polyester fabric. The scarf measures approximately 24x17x17 inches and features a hook and loop closure.

The Faux Fur Headband/Collar – Style Ranges 77 and 78 scarf consists of knit 80% acrylic/20% polyester sliver pile fabric lined with knit 50% polyester/50% cotton fabric. The scarf measures approximately 34x5 inches.

The Faux Fur Headband/Collar – Style Ranges 77 and 78 headband/collar consists of knit 80% acrylic/20% polyester sliver pile fabric lined with knit 50% polyester/50% cotton fabric. The headband/collar measures approximately 24x4 inches and features a hook and loop closure. It is marketed as an item that can be used as a headband and a decorative collar.

MANUFACTURING OPERATIONS:

Coat Scarf – 90 Series

1. Woven 100% polyester fabric is formed in Indonesia. 2. Knit polyester acrylic fabric is formed in Canada. 3. Hook and loop closure origin is Canada. 4. Cutting and sewing, including attaching the hook and loop closure, performed in Canada.

Fashion Scarf – 10 Series

1. Woven 100% polyester fabric is formed in Indonesia. 2. Hook and loop closure origin is Canada. 3. Cutting and sewing, including attaching the hook and loop closure, performed in Canada.

Faux Fur Headband/Collar – Style Ranges 77 and 78 scarf and a headband/collar

1. Fiber originates in Japan (both fabrics). 2. Yarn is spun in Canada (both fabrics). 3. Fabric is knit in Canada (both fabrics). 4. Hook and loop closure origin is Canada (for headband/collar). 5. Cutting and sewing, including attaching the hook and loop closure for headband/collar, performed in Canada.

CLASSIFICATION:

The applicable tariff provision for the Coat Scarf – 90 Series and the Fashion Scarf – 10 Series will be 6214.30.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Shawls, scarves, mufflers, mantillas, veils and the like: Of synthetic fibers.” The general rate of duty will be 5.3% ad valorem.

The applicable tariff provision for the Faux Fur Headband/Collar – Style Ranges 77 and 78 scarf will be 6117.10.2030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Other made up clothing accessories, knitted or crocheted; knitted or crocheted parts of garments or of clothing accessories: Shawls, scarves, mufflers, mantillas, veils and the like: Of man-made fibers...Other.” The general rate of duty will be 11.6% ad valorem.

The applicable tariff provision for the Faux Fur Headband/Collar – Style Ranges 77 and 78 headband/collar will be 6117.80.9540, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Other made up clothing accessories, knitted or crocheted; knitted or crocheted parts of garments or of clothing accessories: Other accessories: Other: Other.... Of man-made fibers: Other.” The general rate of duty will be 15% ad valorem.

NAFTA:

Regarding the North American Free Trade Agreement (NAFTA), General Note (GN) 12(a)(i) states:
a) Goods originating in the territory of a party to the North American Free Trade Agreement (NAFTA) are subject to duty as provided herein. For the purposes of this note??

(i) Goods that originate in the territory of a NAFTA party under the terms of subdivision (b) of this note and that qualify to be marked as goods of Canada under the terms of the marking rules set forth in regulations issued by the Secretary of the Treasury (without regard to whether the goods are marked), when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the "Special" subcolumn followed by the symbol "CA" in parentheses, are eligible for such duty rate, in accordance with section 201 of the North American Free Trade Agreement Implementation Act.

GN 12(b)(ii)(A) states in part:

(b) 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??

(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...

Accordingly the subject merchandise qualifies for NAFTA treatment only if the provisions of General Note 12(b)(ii)(A) are met, that is, if the merchandise is transformed in the territory of Canada so the non-originating materials undergo a change in tariff classification as described in subdivision (t).

As the Coat Scarf – 90 Series and the Fashion Scarf – 10 Series are classified in heading 6214 HTSUS, GN 12(t)/62.38 applies, which states:

A change to headings 6213 through 6217 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or headings 5508 through 5516, 5801 through 5802 or 6001 through 6002, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

The Coat Scarf – 90 Series and the Fashion Scarf – 10 Series do not qualify for preferential treatment under the NAFTA because the polyester fabric is classified under heading 5407, which is excepted from tariff shift consideration. Therefore, one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/62.38, HTSUSA.

As the Faux Fur Headband/Collar – Style Ranges 77 and 78 scarf and headband/collar are classified in heading 6117, HTSUS, GN 12(t)/61.39 applies, which states:

A change to headings 6113 through 6117 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapter 54, or heading 5508 through 5516 or 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

The man-made staple fibers made in Japan are classified in Chapters 54 or 55. The staple fiber yarn spun in Canada is classified in heading 5509. GN 12(t)55.1 requires “A change to headings 5501 through 5511 from any other chapter, except from headings 5201 through 5203 or 5401 through 5405.” As the fibers are from the same heading or headings 5401 through 5405, the yarn is not considered originating. The knit acrylic/polyester fabric formed in Canada is classified in heading 6001. GN 12(t)60 requires “A change to headings 6001 through 6002 from any other chapter, except from headings 5106 through 5113, chapter 52, headings 5307 through 5308, or 5310 through 5311, or chapters 54 through 55.” As the yarn is classified in Chapter 55, the fabric is not considered originating in Canada.

The fabric is not considered originating and is classified under heading 6001, which is an excepted heading. Therefore, one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by under GN 12(t)61.39, HTSUSA. The Faux Fur Headband/Collar – Style Ranges 77 and 78 scarf and headband/collar are not NAFTA eligible.

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.

Regarding the Fashion Scarf – 10 Series, 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

6213–6214 The country of origin of a good classifiable under heading 6213 through 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

As the subject Fashion Scarf – 10 Series is comprised of fabric formed by a fabric making process in a single country, that is, Indonesia, the country of origin of the subject scarf is Indonesia.

The Fashion Scarf – 10 Series falls within textile category designation 659. Based upon international textile trade agreements products of Indonesia are subject to quota and the requirement of a visa.

The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.USTREAS.GOV. In addition, 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 and should also be verified at the time of shipment.

Regarding the Coat Scarf – 90 Series, 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

6213–6214 The country of origin of a good classifiable under heading 6213 through 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

As the subject Coat Scarf – 90 Series is comprised of fabric formed in both Indonesia and Canada, the material does not meet the requirements of Section 102.21(e). Thus, 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.

The subject merchandise has not been knit to shape and has been wholly assembled in Canada. In accordance with Section 102.21(c)(3)(ii), goods that are classifiable in Headings 6213 and 6214, HTSUSA, are excepted from the assembly rule and thus, Section 102.21(c)(3) is inapplicable.

Section 102.21(c)(4) states, “Where the country of origin of a textile or 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.” As the forming of the fabrics is the most important process in the production of the scarf, a single country of origin determination cannot be made based on Section 102.21(c)(4).

Paragraph (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.” Accordingly, in the case of the subject Coat Scarf – 90 Series, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Canada.

Regarding the Faux Fur Headband/Collar – Style Ranges 77 and 78 scarf and headband/collar, 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

6101-6117 (1) If the good is not knit to shape and consists of two or more component parts, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

As the subject Faux Fur Headband/Collar – Style Ranges 77 and 78 scarf and headband/collar are not knit to shape, consist of at least two component parts, are wholly assembled in one country, that is, Canada, the tariff shift rule is applicable. Accordingly, the country of origin of the merchandise is Canada.

TPL:

The scarves and headband/collar are considered apparel goods and are thus eligible for consideration under Trade Preference Levels (TPL). Additional U.S. Note 3(a) applies, which states:

The rate of duty in the “Special” subcolumn of rates of duty column 1 followed by the symbol “CA” in parentheses shall apply to imports from Canada, up to the annual quantities specified in subdivisions (f) of this note, of apparel goods provided for in chapters 61 and 62 that are both cut (or knit to shape) and sewn or otherwise assembled in the territory of a NAFTA party from fabric or yarn produced or obtained outside the territory of one of the NAFTA parties.

Accordingly, as per the terms of Additional U.S. Note 3(a), the subject merchandise which is cut and sewn in Canada from fabric that is non-originating, is eligible for tariff preference levels.

SUMMARY:

The subject merchandise is classified as noted above.

The subject merchandise does not qualify for NAFTA treatment.

The subject merchandise is eligible for TPL.

The Fashion Scarf – 10 Series is country of origin Indonesia; the balance of the merchandise is country of origin Canada.

This ruling is being issued under the provisions of Parts 177 and 181 of the Customs Regulations (19 C.F.R. 177 and 181).

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 Kenneth Reidlinger at 212-637-7084.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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See also:

• Tariff No.: 6117.10.20 - Shawls, scarves, mufflers, mantillas, veils and the like, knitted or crocheted, of man-made fibers
• Tariff No.: 6117.80.95 - Made up clothing accessories (excl shawl, scarve, and like, tie, cravat, headband, ponytail holder and like), cont < 70% wt of silk, k/c
• Tariff No.: 6209.20.50 - Babies' garments & clothing acc. nesoi, of cotton, incl. sunsuits & sim app, sets & parts of sets, & diapers, not knitted or crocheted
• Tariff No.: 6214.30.00 - Shawls, scarves, mufflers, mantillas, veils and the like, not knitted or crocheted, of synthetic fibers