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NY L80240




November 17, 2004

CLA-2-59:RR:NC:TA:350 L80240

CATEGORY: CLASSIFICATION

TARIFF NO.: 5903.10.2010; 5903.10.2500

Mr. Gern F. Scot
PBB Global Logistics
670 Young Street
Tonawanda, NY 14150

RE: Classification, status under the North American Free Trade Agreement (NAFTA) and country of origin determination for five plastic coated textile fabrics;19 CFR 102.21c2); tariff shift; 19CFR 102.19a; NAFTA Preference Override; Article 509.

Dear Mr. Scot:

In your letter dated October 12, 2004, which was a follow-up to your earlier inquiry, where we requested additional information, you requested a ruling on the status of five PVC coated textile fabrics, from Canada under the NAFTA.

You provided five representative samples, which were identified as styles 4000, 4100, 4400, 4800 and 5000, respectively. All five materials consist of woven fabrics which are formed from previously coated polyester man-made fiber yarns and then heat set to provide stability. You provided the following weight specifications for these five styles:

4000: 65% PVC/35% Polyester
4100: 75% PVC/25% Polyester
4400: 75% PVC/25% Polyester
4800: 76% PVC/24% Polyester
5000: 72% PVC/28% Polyester

You write that these five fabrics are manufactured by Phifer Wire Products, Tuscaloosa, Alabama. They are subsequently shipped to Louver-Lite in Canada in 30-yard length rolls and widths of either 63", 84", 96" or 98". In Canada these fabrics are cut to shorter lengths. They are then shipped back to the United States where they will be cut again to their final size and shape. They will be made into finished window blinds.

Your request letter does not specify the manufacturing process done at the Phifer Wire Products operation in Alabama. In addition, you do not indicate where the fibers, yarns, and resins used to make the fabrics are manufactured. For purposes of this ruling, we will assume that only non NAFTA fibers, yarns and resins were used in the production of the fabric at Phifer Wire, and that the subsequent manufacturing stages, (coating of yarns, weaving, and heat sealing), occurred in the United States.

CLASSIFICATION:

The applicable tariff provision for styles 4100, 4400, 4800 and 5000 will be 5903.10.2010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for textile fabrics impregnated, coated, covered or laminated, with plastics, with polyvinyl chloride, of man-made fibers, over 70 percent by weight of rubber or plastics, fabrics, of yarns sheathed with polyvinyl chloride, not otherwise impregnated, coated, covered or laminated. The general rate of duty will be Free.

The applicable subheading for style 4000 will be 5903.10.2500, HTS, which provides for textile fabrics impregnated, coated, covered or laminated, with plastics, with polyvinyl chloride, of man-made fibers, not over 70 percent by weight of rubber or plastics. The general rate of duty is 7.5 percent ad valorem.

NAFTA ELIGIBILITY:

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 five fabrics are considered originating goods because they will meet the requirements of General Note 12(b)(ii) and 12(t)(59.3).

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

5901-5903 a change to heading 5901 through 5903 from any other heading, including a heading within that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5803, 5806, 5808 and 6002 through 6006, and provided that the change is the result of a fabric-making process.

Since the required change took place in the United States, the country of origin under Section 102.21c(2) is the United States. As the origin of the five fabrics for the purposes of marking has been determined to be the United States, the fabrics are not required to be marked as a foreign article for purposes of 19 U.S.C. 1304. However, separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. For more information on the applicability of the requirements under the Textile Fiber Products Identification Act (TFPIA), you should contact the Federal Trade Commission, Textile Program, Division of Enforcement, Bureau of Consumer Protection, 600 Pennsylvania Avenue, N.W., Washington, D.C., 20580.

However, the NAFTA Preference Override set forth in 19 CFR 102.19 is applicable to the subject merchandise. Specifically, 19 CFR 102.19(b) states:

(b) If, under any provision of this part, the country of origin of a good which is originating ..... is determined to be the United States and that good has been exported from, and returned to, the United States after having been advanced in value or improved in condition in another NAFTA country, the country of origin of such good for Customs duty purposes is the last NAFTA country in which that good was advanced in value or improved in condition.

Based on the facts presented, the five fabrics at issue are originating goods under NAFTA and have been determined under section 102.21(c)(2) to be goods of U.S. origin. Because the articles were returned to the U.S. after having been advanced in value or improved in condition in Canada by virtue of cutting to length only, the country of origin of the various fabrics for Customs duty purposes is Canada, pursuant to 19 CFR 102.19(b). Accordingly, the "CA" NAFTA rate will be applicable to the five coated fabrics. The “CA” NAFTA rate for subheadings 5903.10.2010 and 5903.10.2500 will both be Free.

We will not be able to respond to your final question regarding the dutiable status of these materials if sourced from other unspecified countries. We would need to know the full particulars, as well as the specific country(s) involved before making a reliable determination.

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 181.100(a)(2). 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 181 of the Customs Regulations (19 C.F.R. 181). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 181.100(a)(2), 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.

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 Deborah Walsh at 646-733-3044.

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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