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NY E89801




November 19, 1999

CLA2-RR:NC:TA:351 E89801

CATEGORY: CLASSIFICATION

Mr. Mitchell W. Cashion
BAX Global, Inc.
4302 Yorkmont Road
Clt/Douglas Int’l Airport
Charlotte, NC 28208

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

Dear Mr. Mitchell:

This is in reply to your letter dated November 11, 1999, requesting a classification and country of origin determination for knit squares of fabric, (wiping squares), which will be imported into the United States. This request was made on behalf of Texwipe.

FACTS:

The subject merchandise consists of 9 inch by 9 inch double knit 100 percent polyester fabric squares. You refer to them as wiping cloths. Samples (TX1008 and TX1009), were submitted.

The manufacturing operations for the squares are as follows: the polyester filament yarn in knit into fabric in the United States. It is exported on rolls to the Philippines. In the Philippines the fabric is cut to length and width, is washed and packaged for return to the United States.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the squares of cloth will be 6002.93.0040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other knit or crocheted fabrics, other, of man-made fibers, of double knit or interlock construction, of polyester. The rate of duty will be 12 percent ad valorem.

The knit fabric falls within textile category designation 222. 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.

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

6001-6002 A change to heading 6001 through 6002 from any heading outside that group, provided that the change is a result of a fabric-making process.

As the fabric is knit in a single country, that is, the United States, as per the terms of the tariff shift requirement, country of origin is conferred in 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 squares cut from U.S. polyester fabric is the Philippines, for quota, marking and duty purposes.

HOLDING:

The country of origin of the wiping squares is the Philippines. Based upon international textile trade agreements products of the Philippines 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 212-637-7086.

Sincerely,

Robert B. Swierupski
Director,

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