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NY F87709




June 2, 2000

CLA2-RR:NC:TA:352 F87709

CATEGORY: CLASSIFICATION

Mr. Christopher Chang
ES.SE Clothing, L.L.C.
315 W. Adams Blvd.
Los Angeles, CA 90007

RE: Classification and country of origin determination for polyester/spandex blend printed knit fabric; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Chang:

This is in reply to your letter dated May 23, 2000 requesting a classification and country of origin determination for polyester/spandex knit printed fabric which will be imported into the United States.

FACTS:

The subject merchandise consists of weft knit fabric that is printed in Korea. It is composed of 92 percent filament polyester and 8% filament spandex. This double knit fabric will be imported in152 centimeter widths.

The manufacturing operations for the knit fabric are as follows:

Polyester and spandex filament yarns are extruded in Korea and shipped to the United States where they are used to knit the fabric. The greige fabric is prepared for printing in the United States.

The knit fabric is exported to Korea where it is printed with one of several designs.

The finished knit fabric is exported back to the United States.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the weft knit fabric will be 6002.30.2085, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other knitted or crocheted fabrics, of a width exceeding 30 cm, containing by weight 5 percent or more of elastomeric yarn or rubber thread, containing elastomeric yarn, other. The rate of duty will be 13 percent ad valorem.

This 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.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

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

As the fabric making process occurs in a single country, that is, The United States, as per the terms of the tariff shift requirement, country of origin would appear to be conferred in The United States. However, T.D. 95-69, which established §102.21, did not amend section 12.130(c)(1) which states the following:

Applicability to U.S. articles sent abroad. Chapter 98, Subchapter II, Note 2, Harmonized Tariff Schedule of the United States, provides that any product of the U.S. which is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article for the purposes of the Tariff Act of 1930, as amended. In order to have a single definition of the term “product of” and, therefore, a single country of origin for a textile or textile product, notwithstanding paragraph (b), merchandise which falls within the purview of Chapter 98, Subchapter II, Note 2, Harmonized Tariff Schedule of the United States, may not, upon its return to the U.S., be considered a product of the U.S.

Pursuant to T.D. 90-17, published in the Federal Register on March 1, 1990 (55 FR 7303), Customs extended the principles of country of origin for textiles and textile products contained in 19 C.F.R. §12.130 to such merchandise for all Customs purposes, including duty and marking. The printing operation performed on the fabric in Korea constitutes an advancement in value or improvement in condition. Therefore, the country of origin of the fabric is Korea, for quota, marking, and duty purposes pursuant to T.D. 90-17 and section 12.130(c).

HOLDING:

The country of origin of the printed knit fabric is Korea. Based upon international textile trade agreements products of Korea are subject to quota and the requirement of a visa.

It should be noted that the dutiable value of the processed fabric should be based upon the cost or value of the processing performed in Korea plus, if not included, the cost or value of the knit prepared for print fabric shipped to the printer in Korea.

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, 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 Alan Tytelman at 212-637-7092.

Sincerely,

Robert B. Swierupski
Director,

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