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NY K80731





November 25, 2003

CLA2-RR:NC:N3:351 K80731

CATEGORY: CLASSIFICATION

Joanne Burke
Willson International, Inc.
One Heritage Place
Southgate, MI 48195

RE: Classification and country of origin determination for yarns; 19 CFR 102.21(c)(3)

Dear Ms. Burke:

This is in reply to your letter dated Nov. 14, 2003, requesting, on behalf of your client, Spinrite Inc., of Canada, a classification and country of origin determination for yarns that will be imported into the United States.

FACTS:

The subject merchandise consists of two yarns. The first, Bernat Frenzy, part # 161055, is composed of 37% nylon (said to be from Taiwan), 30% acrylic (Taiwan), 12% Polyester (China), 10.5% alpaca (Peru), and 10.5% Mohair (South Africa).

The second yarn, Bernat Galaxy, part # 161053, is composed of 77% acrylic (Taiwan), 8% polyester (China), 7.5% mohair (South Africa), and 7.5% Alpaca (Peru).

You state the decitex of Frenzy to be 6666.6 and of Galaxy, 6329.05, and that they will be imported in 50-gram balls. Our examination leads us to conclude that the man-made fibers are filaments. By virtue of these facts, the yarns meet the tariff definition of “put up for retail sale.”

You state the manufacturing operations for the yarns are as follows:

Manufacturing processes occur in China and include spinning, fancy twisting, dyeing and winding. The yarn is delivered to Spinrite on cones, where it is balled and packaged for retail sale. It is balled into 50-gram balls and packaged 10 balls per pack.

We take this to mean that the yarns are shipped from their specified country of origins to China, where they are twisted into the final yarns, Frenzy and Galaxy.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the yarn Frenzy will be 5406.10.0090, Harmonized Tariff Schedule of the United States (HTS), which provides for man-made filament yarn (other than sewing thread), put up for retail sale: synthetic filament yarn, other.

The applicable subheading for the yarn Galaxy will be 5406.10.0020, HTS, which provides for man-made filament yarn (other than sewing thread), put up for retail sale, synthetic filament yarn, of acrylic.

The general rate of duty for both yarns will be eight percent ad valorem.

Both these subheadings fall within textile category designation 200. Based upon international textile trade agreements products of China are subject to quota and the requirement of a visa.

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.

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 yarns 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

5401-5406 A change to heading 5401 through 5406 from any other heading, provided that the change is the result of an extrusion process.

Accordingly, as the foreign materials incorporated in the yarns are not formed in a single country, territory, or insular possession, Section 102.21(c)(2) is inapplicable.

Section 102.21(c)(3) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is not knit to shape, and the good was wholly assembled in a single country (China), Section 102.21(c)(3) applies.

Please note that separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. You should contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to this item.

HOLDING:

The country of origin of both yarns is China. Based upon international textile trade agreements products of China 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 Mitchel Bayer at 646-733-3102

Sincerely,

Robert B. Swierupski
Director,

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