NY E84864 - Country of origin determination for a fake fur collar and scarf; 19 CFR 102.21 (c) (2) and (c)(5); eligibility for Tariff Preference Levels (TPL). - United States International Trade Commision Rulings

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August 16, 1999

CLA?2-RR:NC:3:353 E84864

CATEGORY: CLASSIFICATION

Ms. Dody Tombley
The Omnitrans Group
407 McGill Street
Montreal, PQ
J2Y 2G3

RE: Country of origin determination for a fake fur collar and scarf; 19 CFR 102.21 (c) (2) and (c)(5); eligibility for Tariff Preference Levels (TPL).

Dear Ms. Tombley:

This is in reply to your letter dated July 13, 1999, on behalf of Theresa Findlay Private Label Accessories, Inc., requesting a country of origin and eligibility for Tariff Preference Levels (TPL) determination for a fake fur collar and scarf which will be imported into the United States.

In ruling NY E82611 the fake fur collar was classified under subheading 6217.10.9530 and the fake fur scarf under subheading 6214.30.0000. In addition, the goods were determined not to qualify for preferential treatment under NAFTA.

FACTS:

The subject merchandise is a woven man-made fiber fake fur fabric collar and a woven synthetic fiber fake fur fabric scarf.

The manufacturing operations for the collar and scarf are as follows:

Both items are made from 100% acrylic fabric from France and !00% polyester fabric from Korea. In Canada, the fabrics are cut to the appropriate shapes and four panels (two acrylic fabric and two polyester fabric) are sewn together. Metal pins are attached to the collar and a loop is sewn onto the scarf.

ISSUE:

What is the country of origin for the subject merchandise?

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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

Regarding the fake fur 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

6215 ? 6217 (1) If the good consists of two or more component parts, a change to an assembled good of heading 6215 through 6217 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 collar consists of two or more component parts and is assembled in a single country, that is, Canada, as per the terms of the tariff shift requirement, country of origin is conferred in Canada.

Regarding the fake fur scarf, 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.

Section 102.21(e) states that the fabrics must be formed in a single country. Accordingly, as the fabrics are formed in two countries, the scarf does not meet the requirement. 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 classified in an excepted heading, that is, 6214, 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 most important manufacturing process, the forming of the fabrics, occurred in two countries, 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 scarf, country of origin is conferred by the last country in which an important assembly or manufacturing process occurred, that is, Canada.

TPL:

The scarves and 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.

HOLDING:

The country of origin of the collar and scarf is Canada. Based upon international textile trade agreements products of Canada are not subject to quota and the requirement of a visa. The collar and scarf are eligible for TPL treatment.

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 Parts 177 and 181 of the Customs Regulations (19 C.F.R. 177 and 181). 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 Kenneth Reidlinger at 212-637-7084.

Sincerely,

Robert B. Swierupski
Director,

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