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NY H83090




July 30, 2001

CLA-2-61:RR:NC:3:353 H83090

CATEGORY: CLASSIFICATION

TARIFF NO.: 6117.10.2030

Mr./Ms. Sasha Craig
Omnitrans, Inc.
407 Rue McGill, Bureau 900
Montreal, Quebec H2Y 2G3

RE: The tariff classification, country of origin determination, and status under the North American Free Trade Agreement (NAFTA) and Tariff Preference Levels (TPL), of scarves; 19 CFR 102.21(c)(1) and (c)(2); tariff shift, Article 509;

Dear Mr./Ms. Craig:

In your letter dated July 10, 2001, on behalf of 1287454 Ontario Limited, you requested a ruling on the classification, determination of country of origin and status of scarves under the NAFTA. The samples will be returned as you requested.

The submitted samples are items 83 Series A, 83 Series B, 86 Series A and 86 Series B Velour Twist Scarves. The scarves are constructed of knit 100% polyester fabric. The scarves measure approximately 9 x 58 inches and have a piece of heavy-duty elastic sewn in side. The elastic creates a twisted look to the scarves. Series 86 has an approximately 3½ inch 100% polyester fringe attached to the 9 inch ends.

The 83 Series A Velour Twist Scarf is made of fabric manufactured in Canada from yarns and fibers of Canadian origin. The thread and elastic is of Canadian origin.

The 83 Series B Velour Twist Scarf is made of fabric manufactured in Korea from yarns and fibers of Korean origin. The thread and elastic is of Canadian origin.

The 86 Series A Velour Twist Scarf is made of fabric manufactured in Canada from yarns and fibers of Canadian origin. The thread and elastic is Canadian origin. The fringe is of Korean origin.

The 86 Series B Velour Twist Scarf is made of fabric manufactured in Korea from yarns and fibers of Korean origin. The thread and elastic is Canadian origin. The fringe is of Korean origin.

The manufacturing operation in Canada consists of:

Fabric is cut to 9 x 58 inch piece
Fabric is cut to 9 x 7 inch piece
The two pieces are sewn together on three sides Sew cut 20 inch elastic to inside edge
Fourth side is sewn
For 86 Series the fringe is attached

The applicable tariff provision for the items 83 Series A, 83 Series B, 86 Series A and 86 Series B Velour Twist scarves will be 6117.10.2030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Other made up clothing accessories, knitted or crochetedShawls, scarves, mufflers, mantillas, veils and the like: Of man-made fibers, Other.” The general rate of duty will be 11.5%. The textile category designation is 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.

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 83 Series A Velour Twist Scarf was wholly obtained or produced in a single country, that is, Canada, country of origin is conferred in Canada. As the 83 Series B, 86 Series A and 86 Series B Velour Twist Scarves are 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 83 Series B, 86 Series A and 86 Series B Velour Twist Scarves 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 items 83 Series A, 83 Series B, 86 Series A and 86 Series B Velour Twist scarves is Canada. Based upon international textile trade agreements products of Canada are not subject to quota or the requirement of a visa.

Regarding NAFTA, Chapter 61, Chapter rule 2 states that for determining whether an item is NAFTA originating “the rule applicable to that good shall only apply to the component that determines the tariff classification of the good, and such component must satisfy the tariff change requirements set out in the rule for that good” For the 86 Series, since the fringe is not part of the component that determines the classification of the good, the Korean fringe is not considered when making a NAFTA determination.

The 83 Series A and 86 Series A Velour Twist Scarves, being made entirely in the territory of Canada using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). The merchandise will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

For the 83 Series B and 86 Series B Velour Twist Scarves, one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/61.39, HTSUSA. Namely the fabric manufactured in Korea is classified in heading 6001 or 6002, which is an excepted heading.

In addition, the 83 Series B and 86 Series B Velour Twist Scarves may be subject to a reduced rate of duty based upon the Tariff Preference Levels (TPL) established in Section XI, Additional U.S. Note 3(a), up to the annual quantities specified in subdivision (i) of Note 3(f). Upon completion of the required documentation and up to the specified annual quantities, the 83 Series B and 86 Series B Velour Twist Scarves may be eligible for the preferential rate of Free.

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

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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