The tariff classification and country of origin of a 100% cotton plain woven printed fabric woven in the United States and bleached mercerized and printed in Korea.

NY 813879 September 18, 1995 CLA-2-52:S:N:N3:352 813879 CATEGORY: Classification TARIFF NO.: 5208.52.3040 Mr. Joseph Grogan Weavetex Fabrics Inc. 501 Seventh Avenue Suite 1304 New York, New York 10018 RE: The tariff classification and country of origin of a 100% cotton plain woven printed fabric woven in the United States and bleached mercerized and printed in Korea. Dear Mr. Grogan: In your letter dated August 16, 1995 you requested a classification and country of origin ruling. The fabric you intend to import is a 100% cotton plain woven printed fabric. It contains 23.6 single yarns per centimeter in the warp and 23.6 single yarns per centimeter in the filling. This product is constructed using 20/1 c.c. yarns in both the warp and the filling. Weighing 159.6 g/m2, the fabric will be imported in 113 centimeter widths. Based on the data you have provided, the average yarn number for this product has been calculated to be 29 in the metric system. Your correspondence indicates that you intend to export U.S. manufactured greige woven fabric to Korea for finishing and subsequently will import the finished printed fabric. In Korea the greige woven fabric will be bleached, mercerized and printed. U.S. Note 2 to Subchapter II of Chapter 98 states in part that: Any product of the United States which is returned after having been advanced in value or improved in condition abroad by any process of manufacture or other means... shall be treated for the purposes of this act as a foreign article, and, if subject to a duty which is wholly or partly ad valorem, shall be dutiable, except as otherwise prescribed in this part, on its full value determined in accordance with section 402 of the tariff act of 1930, as amended... Since there is no other part of Subchapter II Chapter 98 which would specifically exempt the woven fabric processed in Korea from the application of this Note, the Korean processed fabric would be considered a foreign article for duty assessment purposes. In addition, the cost or value of the greige goods if not included in the invoice price for the Korean fabric would represent a assist under Section 402 of the Tariff Act (TA). As an assist the value of the greige goods would be added to the processing costs before the ad valorem rate of duty is applied pursuant to Section 402, TA. Section 12.130 of the Customs Regulations (CR) is the implementing regulations for use in determining the country of origin for textiles and textile products which are subject to Section 204 of the Agricultural Act of 1956, as amended. The Agricultural Act provides in part the statutory authority for the use of quotas and visas for the control of textile imports pursuant to the International Arrangement Regarding Trade in Textiles. Section 12.130(c) CR specifically addresses the situation where a U.S. product is sent abroad and is returned after having been advanced in value or improved in condition. In harmony with Note 2 Subchapter II of chapter 98, the regulation instructs that a U.S. product advanced in value or improved in condition while abroad may not be considered a product of the U.S. upon its return to the United States. Consequently, in the situation before us for consideration, the printed fabric would be considered a product of Korea for quota and visa purposes. The applicable subheading for the plain woven printed fabric will be 5208.52.3040, Harmonized Tariff Schedule of the United States (HTS), which provides for woven fabrics of cotton, containing 85 percent or more by weight of cotton, weighing not more than 200 g/m2, printed, plain weave, weighing more than 100 g/m2, other, of number 42 or lower number, sheeting. The duty rate will be 9.2 percent ad valorem. This fabric falls within textile category designation 313. Based upon international textile trade agreements products of Korea are subject to quota and the requirement of a visa. 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. Part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes. To obtain the most current information available, we suggest that you check, close to the time of shipment, the Status Report on Current Import Quotas (Restraint Levels), an internal issuance of the U.S. Customs Service, which is available for inspection at your local Customs office. This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177). 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 Alan Tytelman at 212-466-5896. Sincerely, Roger J. Silvestri Director National Commodity Specialist Division