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NY K88415




August 11, 2004

CLA-2-62:RR:NC:3:353 K88415

CATEGORY: CLASSIFICATION

TARIFF NO.: 6217.10.9530

Ms. Margaret R. Polito
Neville Peterson LLP
17 State Street, 19th Floor
New York, NY 10004

RE: Classification of a safety vest, status and marking under the North American Free Trade Agreement (NAFTA), Article 509; country of origin determination; 19 CFR 102.21(c)(2)

Dear Ms. Polito:

This letter replaces the ruling letter we sent to you under file number K88001. The purpose of this replacement letter is to correct an error regarding the name of the company you requested the ruling “on behalf of.” A corrected letter follows.

In your letter dated July 16, 2004 you requested a ruling, on behalf of Lohmann & Rauscher, Inc., on the classification, determination of country of origin, and status of a safety vest under the NAFTA. Samples of the unfinished and finished item were provided and will be returned to you as requested.

The submitted samples, which will be imported into the United States, are 5 panels: a top left front panel, bottom left front panel, a top right front panel, a bottom right front panel and one back panel for a Model 664 Flame Resistant Safety Vest. The panels are constructed of orange woven 100% mod-acrylic flame resistant fabric. All the panels have sewn on two-inch wide reflective strips. The top front panels have hook and loop tape sewn on the bottom, the bottom front panels have hook and loop tape sewn in the center and black binding sewn around three sides, The back panel has two hook and loop tabs sewn on and a personal protective equipment (PPE) label, an OSHA requirement, sewn on. The vests are used by construction workers and highway personnel and provide greater visibility to motorists. In addition, the vest is made from flame resistant fabric to protect from burns, and the lower front panels are designed to be easily removed should the vest become caught in machinery. The panels will be imported in equal amounts in the same shipment.

The manufacturing process is as follows:

United States

Orange and black woven fabrics are formed from yarn spun in the U S Reflective tape is purchased in the U S that is U S originating The black fabric is slit to produce binding The fabric, slit fabric and reflective tape are exported to Mexico

Mexico

The orange woven fabric is cut to shape into five components (upper and lower left front panels, upper and lower right front panels, and back panel) Non-originating hook and loop closures are sewn onto the front panels Hook and loop tabs are sewn onto the back panel Reflective tape is sewn onto each panel
Black binding is sewn around three sides of the bottom front components PPE label will be sewn onto the inside of the back panel. Size labels will be printed in Mexico, but not attached to the panels The five panels and size label are exported into the U S

United States

The back and top front panels are sewn together Black binding is sewn around edges of top panels and back pane Opposite portion of the hook and loop closure sewn onto the bottom front panels Complete hook and loop closure secured to the bottom front panels so vest can be secured
Side adjusters are created from the reflective tape Size label is sewn in place
Inspected and packaged

The five panels form an unfinished safety vest. General Note 2 (a) states that “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.” The five panels have the essential character of a finished safety vest.

The applicable tariff provision for the unfinished Model 664 Flame Resistant Safety Vest will be 6217.10.9530, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Other made up clothing accessories; parts of garments or clothing accessoriesAccessories: Other: Other, Of man-made fibers.” The general rate of duty will be 14.6% ad valorem. The unfinished Model 664 Flame Resistant Safety Vest falls within textile category designation 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 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.

General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that—

(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or

(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--

(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or

(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.

All of the components, with the exception of the hook and loop closure and PPE label are originating products. However, in accordance with General Note 12(f)(i), the "de minimus" rule will apply to these items. Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials.

Regarding the unfinished Model 664 Flame Resistant Safety Vest, 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

6215 - 6217           (1) If the good consists of two or more component parts, a change to an assembled good of heading 6215 through 6217 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession. 

The sewing of the reflective strips to the panels is a significant operation. At the time of importation, the unfinished Model 664 Flame Resistant Safety Vest is wholly assembled in a single country, that is, Mexico, and as per the terms of the tariff shift requirement, country of origin is conferred in Mexico.

You have informed this office that the Model 664 Flame Resistant Safety Vest will be assembled and finished in the United States, and request a determination as to marking of the finished item. A second determination using Section 102.21, Customs Regulations must be performed to determine the country of origin of the finished item, so it may be properly marked.

Regarding the finished Model 664 Flame Resistant Safety Vest, 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

6215 - 6217           (1) If the good consists of two or more component parts, a change to an assembled good of heading 6215 through 6217 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession. 

Section 102.21(e) states that the good must be wholly assembled in a single country. Accordingly, as the finished Model 664 Flame Resistant Safety Vest will be assembled in two countries, it does not meet the shift requirement, and 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 neither knit to shape, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable.

Section 102.21 (c)(4) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred."

In the case of the subject merchandise, the assembly of the panels together constitutes the most important assembly process. Accordingly, the country of origin of the finished Model 664 Flame Resistant Safety Vest is the United States.

For Customs purposes, the finished Model 664 Flame Resistant Safety Vest does not need to be marked. However, 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.

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 646-733-3053.

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 and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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