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NY H85351




August 23, 2001

CLA2-RR:NC:3:353 H85351

CATEGORY: CLASSIFICATION

Mr. Bruce Schiller
MSAS Global Logistics Inc.
10205 N.W. 19th Street
Suite 101
Miami, FL 33172

RE: Classification and country of origin determination for socks; 19 CFR 102.21(c)(2); 19 CFR 12.130(c); Applicability of subheading 9802.00.50

Dear Mr. Schiller:

This ruling replaces ruling NY H80726, which contained clerical errors. The request was made on behalf of Renfro Corporation, for a classification and country of origin determination for socks which will be imported into the United States.

FACTS:

The subject merchandise consists of Style M1990WX socks constructed of knit 85% cotton, 14% polyester and 1% nylon fabric. The socks extend to mid-calf.

The manufacturing operations for the Style M1990WX socks are as follows:

United States

Yarn is knit to the shape of a sock
Toe is open (has not been sewn closed)

Honduras

Toe seam is sewn shut
The sock is “boarded,” that is, the sock is pulled down on a shaped board, moved through a heated machine, removing wrinkles and shaping the sock. Sock is removed from board and stacked flat Inspecting, matching and clipping of threads Socks are folded and placed in plastic bags or paper bands

ISSUE:

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

CLASSIFICATION:

The applicable subheading for will be 6115.92.9000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Panty hose, tights, stockings, socks and other hosiery, including stockings for varicose veins, and footwear without applied soles, knitted or crocheted: Other: Of cotton: Other: Other.” The general rate of duty will be 13.8% ad valorem.

The Style M1990WX socks falls within textile category designation 332. 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.

You request a determination regarding the eligibility for treatment under 9802.00.50,HTS.

Articles returned to the U.S. after having been exported to be advanced in value or improved in condition by repairs or alterations may qualify for the partial duty exemption under subheading 9802.00.50 (other repairs or alterations), provided the foreign operation does not destroy the identity of the exported articles or create new or different articles. The identity as a sock was established prior to its export. Sewing the fabric onto itself constitutes an acceptable assembly operation and the boarding process (heat treatment to remove wrinkles and shape the sock) constitutes an acceptable alteration within the meaning of subheading 9802.00.50.

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

6101–6117 (3) If the good is knit to shape, a change to heading 6101 through 6117 from any heading outside that group, provided that the knit-to-shape components are knit in a single country, territory, or insular possession.

As the sock is knit to shape 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 for textile 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 that is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article.

Section 12.130, 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 for quota, duty, and marking purposes when making country of origin determinations for textile goods. In accordance with T.D. 90-17 and Section 12.130(c), the country of origin of the socks knit to shape in the U.S. is Honduras, for quota, marking, and duty purposes. However, this position has recently been modified. On July 11, 2000, Customs published T.D. 00-44 in the Federal Register (65 FR 42634), stating that effective October 10, 2000, Customs will no longer apply 19 CFR 12.130(c) for purposes of country of origin marking. Therefore, in accordance with T.D. 00-44, Section 12.130(c) and Section 102.21(c)(2), the country of origin of the socks will be the United States. Section 12.130(c) remains in effect for duty and quota purposes and the socks are subject to the general rate of duty noted previously.

HOLDING:

The country of origin of the Style M1990WX socks for marking purposes is the United States. The country of origin for quota and duty purposes is Honduras. Based upon international textile trade agreements products of Honduras are not subject to quota and the requirement of a visa.

If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase “Made in the USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the U.S.

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.

Sincerely,

Robert B. Swierupski
Director,

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