Modification of NY D86447, dated January 15, 1999

HQ 962578 February 23, 1999 CLA-2 RR:CR:TE 962578 jb CATEGORY: Classification Mr. Ronald Osborne Globus Mercantile Co., Inc. 10 East 40th Street, #3612 New York, NY 10016 RE: Modification of NY D86447, dated January 15, 1999 Dear Mr. Osborne: This is in regard to New York Ruling Letter (NY) D86447, issued to you from our New York office on January 15, 1999. In NY D86447 Customs determined the country of origin for certain plied yarn pursuant to Section 102.21, Customs Regulations (19 CFR 102.21). Although the ultimate country of origin determination for that merchandise is correct, this is to inform you that the analysis used to arrive at the final determination is incorrect. As such, this letter will set out the proper analysis for the merchandise at issue. FACTS: The subject merchandise consists of plied 100 percent viscose rayon yarn. The manufacturing operations for this yarn are as follows: Philippines yarn is spun into a single yarn Indonesia yarn is plied into a multiple yarn and put up on cones weighing in excess of 4 pounds each cone LAW AND ANALYSIS: NY D86447 correctly stated that section 102.21(c)(1) was not applicable to this merchandise for the reasons stated therein. However, in the analysis addressing 102.21(c)(2), NY D86447 incorrectly stated that the subject merchandise did not meet the requisite tariff shift for that heading.  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 foreign material 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) 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”: 5508-5511 A change to heading 5508 through 5511 from any heading outside that group, provided that the change is the result of a spinning process. As correctly stated in NY D86447, the subject merchandise is classified in subheading 5510.12.0000, HTSUSA. The subject merchandise, before being spun into a single yarn in the Philippines, consists of staple fibers classified in heading 5504, HTSUS. After being spun into a single yarn, the merchandise is classified in heading 5510.11, HTSUS. Once in Indonesia, the yarn changes from classification in heading 5510.11, HTSUSA, to heading 5510.12, HTSUSA. As heading 5504, HTSUS, is a heading which is not precluded by the terms of the tariff shift, the terms of the tariff shift are met. Accordingly, pursuant to section 102.21(c)(2), the country of origin of the subject merchandise is the Philippines. Sincerely, John Durant, Director Commercial Rulings Division