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NY G84088




November 29, 2000

CLA-2-RR:NC:TA:349 G84088

CATEGORY: CLASSIFICATION

Mr. James C. Alberdi
A. J. Arango, Inc.
P.O. Box 75062
Tampa, FL 33675-5062

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

Dear Mr. Alberdi:

This is in reply to your letter dated November 13, 2000, on behalf of American Towel and Textile, requesting a classification and country of origin determination for towels which will be imported into the United States.

FACTS:

The subject merchandise consists of different towels. You submitted a sample of greige toweling fabric and samples of a finished beach towel, kitchen towel and hand towel. All three towels are made from 100 percent cotton terry toweling fabric. The beach towel measures approximately 31.5 x 60 inches and it is printed with a nature design. The kitchen towel is printed with a holiday angel design and measures approximately 15 x 25 inches. The approximately 17 x 26 inch hand towel is dyed a solid green and is embroidered with a festive design at one end. All three samples are sheared on one side however; other towels may retain the terry loops on both sides. The towels are hemmed on all four sides. The manufacturing operations for the towels are as follows:

China, India or Pakistan:
-terry toweling fabric is woven.
-greige fabric is shipped to Cambodia.

Cambodia:
-fabric is sheared on one side if required. -fabric is desized, scoured, degreased, bleached, rinsed and softened. -fabric is dyed or printed or dyed and printed. -fabric is cut into individual towels.
-towels are hemmed.
-certain towels are embroidered.
-towels are packed for shipment.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the kitchen towels will be 6302.60.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for bed linen, table linen, toilet linen and kitchen linen: toilet linen and kitchen linen, of terry toweling or similar terry fabrics, of cotton towels: dish. The rate of duty will be 9.6 percent ad valorem.

The applicable subheading for the hand towels and beach towels will be 6302.60.0020, HTSUSA, which provides for bed linen, table linen, toilet linen and kitchen linen: toilet linen and kitchen linen, of terry toweling or similar terry fabrics, of cotton towels: other. The rate of duty will be 9.6 percent ad valorem.

The hand and beach towels fall under textile category designation 363 and the kitchen towels fall within textile category designation 369. 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

6301-6306 The country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric making process.

As the terry fabric comprising the towels was formed in a single country, that is, China or India or Pakistan, as per the terms of the tariff shift requirement, country of origin is conferred in China when the fabric is woven in China, India when the fabric is woven in India or Pakistan when the fabric is woven in Pakistan.

HOLDING:

The kitchen towels are classified in subheading 6302.60.0010, HTSUSA, which provides for cotton terry dish towels. The hand and beach towels are classified in subheading 6302.60.0020, HTSUSA, which provides for other cotton terry towels

The country of origin of the finished towels is China when the terry fabric is woven in China, India when the terry fabric is woven in India or Pakistan when the terry fabric is woven in Pakistan. Based upon international textile trade agreements products of China, India and Pakistan which fall within textile category designations 369 and 363 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 John Hansen at 212-637-7078.

Sincerely,

Robert B. Swierupski
Director,

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