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NY F89475




August 8, 2000

CLA-2-61:RR:NC:3:353 F89475

CATEGORY: CLASSIFICATION

TARIFF NO.: 6117.10.2030, 6117.80.9540

Mr. Karl F. Krueger
AEI Customs Brokerage Services
P.O. Box 5129
Southfield, Michigan 48086-5129

RE: The tariff classification, status under the North American Free Trade Agreement (NAFTA), and country of origin determination, of a scarf and ear warmer; Article 509; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Krueger:

In your letter dated June 30, 2000, received in this office on July 10, 2000, on behalf of Top Ten Schoolwear, Inc., you requested a ruling on the classification, status under the NAFTA, and country of origin determination of a scarf and ear warmer. The samples submitted with the ruling request will be returned to you.

FACTS:

The submitted samples, a scarf and ear warmer, for which no style designations were supplied, are constructed of knit 100% polyester fleece fabric. The scarf consists of a front and back panel and measures approximately 10 x 60 inches. The ear warmer is a headband that consists of a and front and back panel, measures approximately 3 inches in width, and features a hook and loop closure.

The knit 100% fleece fabric is formed in Taiwan. It is shipped to Canada where it is cut into two panels, which are sewn together. In addition, a hook and loop closure is added to the ear warmer.

ISSUE:

What are the classification, NAFTA status and country of origin of the articles?

CLASSIFICATION:

The applicable subheading for the scarf will be 6117.10.2030, Harmonized Tariff Schedule of the United States (HTS), which provides for “Other made up clothing accessories, knitted or crocheted; knitted or crocheted parts of garments 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 subheading for the ear warmer will be 6117.80.9540, Harmonized Tariff Schedule of the United States (HTS), which provides for “Other made up clothing accessoriesOther accessories: Other: Other, Of man-made fibers: Other.” The general rate of duty is 15% ad valorem.

The scarf and ear warmer fall within textile category designation 659. 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.

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 nonoriginating 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 scarf and ear warmer 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.

As the knit 100% polyester fleece fabric from Taiwan is classified under heading 6001 or 6002, which is an excepted heading, the scarf and ear warmer 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.

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 scarf and ear warmer are not knit to shape and are assembled in a single country, that is, Canada, as per the terms of the tariff shift requirement, country of origin is conferred in Canada.

The country of origin of the scarf and ear warmer is Canada. Based upon international textile trade agreements products of Canada are not subject to quota or the requirement of a visa.

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

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 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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