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NY J88441





October 1, 2003

CLA-2-RR:NC:TA:349 J88441

CATEGORY: CLASSIFICATION

Ms. Cindy R. Taber
Sandler, Travis & Rosenberg, P.A.
551 Fifth Avenue
New York, NY 10176

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

Dear Ms. Taber:

This is in reply to your letter dated September 9, 2003, requesting a classification and country of origin determination for towels which will be imported into the United States. This request is made on behalf of Coteminas.

FACTS:

The subject merchandise consists of towels. You submitted a sample of a hand towel, bath towel and a piece of loomstate terry toweling fabric. The fabric sample is submitted to indicate the condition of the fabric as it leaves the first country. The towels are made from the 100 percent cotton terry toweling fabric. They are dyed a solid color and measure 16 x 26 inches for the hand towel and 26 x 43 inches for the bath towel. The towels are hemmed on all four sides and feature a decoratively woven non-pile band near both ends. The toweling fabric is made with pile sections separated by non-pile bands and includes the decoratively woven bands. Depending on the size of the towel to be made, the toweling fabric may have from two to five pile sections across the width.

You have proposed two manufacturing scenarios. The manufacturing operations for the towels are as follows:

Scenario 1
ARGENTINA:
-cotton toweling fabric is woven.
-greige fabric is shipped to Brazil.
BRAZIL:
-fabric is dyed and finished.
-fabric is cut along the non-pile sections. -fabric pieces are hemmed creating the finished towels. -towels are packed and shipped.

Scenario 2
BRAZIL:
-cotton toweling fabric is woven.
-greige fabric is shipped to Argentina.

ARGENTINA:
-fabric is dyed and finished.
-fabric is cut along the non-pile sections. -fabric pieces are hemmed creating the finished towels. -towels are packed and shipped.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the towels will be 6302.60.0020, 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: other. The duty rate will be 9.2 percent ad valorem.

The towels fall within textile category designation 363. 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 Textile Status Report for Absolute Quotas, which is available at our Web site at www.cbp.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:

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the 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 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, 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.

Subheading 6302.60 is not included in the paragraph (e)(2) exception to the above tariff shift rule. As the fabric comprising the towels is formed in a single country, that is, Argentina when woven in Argentina and Brazil when woven in Brazil, as per the terms of the tariff shift requirement, country of origin is conferred in Argentina when the fabric is woven in Argentina and in Brazil when the fabric is woven in Brazil.

HOLDING:

The country of origin of the towels is Argentina when the fabric is woven in Argentina and Brazil when the fabric is woven in Brazil. Based upon international textile trade agreements products of Brazil 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 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 John Hansen at 646-733-3043.

Sincerely,

Robert B. Swierupski
Director,

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