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NY M85621





August 31, 2006

CLA2-RR:NC:TA:350 M85621

CATEGORY: CLASSIFICATION

Marcela B. Stras
Baker & Hostetler LLP
Washington Square, Suite 1100
1050 Connecticut Avenue, N.W.
Washington, DC 20036-5304

RE: Classification and country of origin determination for narrow width woven fabric ribbons; 19 CFR 102.21(c)(4)

Dear Ms. Stras:

This is in reply to your letter dated July 25, 2006, on behalf of your client American Greetings Corporation, requesting a classification and country of origin determination for narrow width woven fabric ribbons which will be imported into the United States.

FACTS:

The subject merchandise consists of narrow width woven man made fabric ribbons. No sample was provided with the ruling request. The description provided by counsel states the ribbons are 1½ inch wide woven nylon mesh.

The manufacturing operations for the ribbons are as follows:

The fabric is woven in Taiwan of Taiwanese material. The ribbon is dyed different colors in Taiwan. The permanent stiffing is done in Taiwan. Ribbon sent to China in bulk packages - 1½ inches wide by 1,650 yards per carton. Ribbon is cut into 12 foot lengths (4 yards) in China. Ribbon is wound on a paper backer card and wrapped with clear cellophane in China. The paper backer cards and cellophane are made in China. Packaged ribbons are then sent to the United States.

ISSUE:

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

CLASSIFICATION:

Based on the description provided in the ruling request letter, the applicable subheading for the narrow width woven fabric ribbons will be 5806.32.1090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Narrow woven fabrics, other than goods of heading 5807; Other woven fabrics: Of man-made fibers: Ribbons Other. The general rate of duty will be 6 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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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

(1) Except for fabric of wool or fine animal hair, a change from greige fabric of heading 5806 to a finished fabric of heading 5806 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing or moireing; or

(2) If the country of origin cannot be determined under (1) above, a change to heading 5806 form any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, and 5801 through 5803, and provided that the change is the result of a fabric-making process.

Subsection (1) of this rule does not apply because greige fabric is not exported to China from Taiwan. Further, the woven ribbon from Taiwan is not dyed, printed or otherwise finished in China. Subsection (2) is likewise inapplicable because any tariff shift that occurs is not the result of a fabric making process. In fact, no tariff shift occurs at all in this situation. Both the woven ribbon in bulk rolls and the cellophane wrapped woven ribbon on backer cards are classified in heading 5806. Accordingly, 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 fabric-making process constitutes the most important manufacturing operation. Accordingly, the country of origin of the ribbon is Taiwan.

HOLDING:

The country of origin of the narrow woven fabric ribbons is Taiwan.

The narrow width woven fabric ribbon falls within textile category 229. With the exception of certain products of China, quota/visa requirements are no longer applicable for merchandise which is the product of World Trade Organization (WTO) member countries. The textile category number above applies to merchandise produced in non-WTO member-countries. Quota and visa requirements are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information on quota and visa requirements applicable to this merchandise, we suggest you check, close to the time of shipment, the “Textile Status Report for Absolute Quotas” which is available on our web site at www.cbp.gov. For current information regarding possible textile safeguard actions on goods from China and related issues, we refer you to the web site of the Office of Textiles and Apparel of the Department of Commerce 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 Deborah Walsh at (646) 733-3044.

Sincerely,

Robert B. Swierupski
Director,

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