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NY M83603





May 30, 2006

CLA2-RR:NC:N3:349 M83603

CATEGORY: CLASSIFICATION

Mr. Robert Horowitz
Sabtex Ltd.
800 D Central Boulevard
Carlstadt, NJ 07072

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

Dear Mr. Horowitz:

This is in reply to your letter dated May 9, 2006, requesting a classification and country of origin determination for a towel which will be imported into the United States.

FACTS:

The subject merchandise, identified as “magic sport towels”, is a compressed towel. A sample of the towel in its compressed form was submitted with your request. The towel is made from 100 percent cotton terry fabric. It is plain white. The spherical compressed form of the towel measures approximately 2.25 inches in diameter. It has an outer plastic wrap designed to resemble various balls used in sports. In its open state the towel measures 16 x 26 inches. The manufacturing operations for the towel are as follows:

INDIA OR PAKISTAN:
-fabric is woven.
-fabric is bleached and may be dyed.
-fabric is cut and hemmed on four sides.
-towel is shipped to China.

CHINA:
-bleached or dyed towel is compressed and wrapped. -some bleached towels maybe printed, compressed and wrapped. -towel is packed for shipment.

ISSUE:

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

CLASSIFICATION:

The applicable subheading for the towel will be 6302.60.0020, Harmonized Tariff Schedule of the United States (HTSUS), 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 9.1 percent ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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, India or Pakistan, as per the terms of the tariff shift requirement, country of origin is conferred in India when the fabric is woven in India and in Pakistan when the fabric is woven in Pakistan.

HOLDING:

The country of origin of the compressed towel is India when the fabric is woven in India or Pakistan when the fabric is woven in Pakistan.

The towel falls within textile category designation 363. Quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information as to whether quota and visa requirements apply to this merchandise, we suggest that you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” available at our web site at www.cbp.gov. In addition, you will find current information on textile import quotas, textile safeguard actions and related issues at the web site of the Office of Textiles and Apparel, at otexa.ita.doc.gov.

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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