Classification and country of origin determination for filament yarn; 19 C.F.R. §102.21(c)(2); tariff shift

NY E80158 April 1, 1999 CLA-2-RR:NC:TA:351 E80158 CATEGORY: Classification Mr. George Stockton Coats American, Inc. P. O. Box 729 Old Fort, NC 28762 RE: Classification and country of origin determination for filament yarn; 19 C.F.R. §102.21(c)(2); tariff shift Dear Mr. Stockton: This is in reply to your letter dated March 29, 1999, requesting a classification and country of origin determination for filament yarn which will be imported into the United States. FACTS: The subject merchandise consists of two-ply 100% polyester yarn. The polyester thread is stated to be, (after all processing is complete): high tenacity, 264 decitex, 2 ply, multifilament thread, with 551 turns per meter. The thread is extruded in Japan and shipped to China for twisting into a two ply yarn. No sample was submitted. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the polyester yarn will be 5402.20.6000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for synthetic filament yarn (other than sewing thread), not put up for retail sale...high tenacity yarn of polyester, multiple (folded) or cabled. The rate of duty will be 8.3 percent ad valorem. The polyester yarn falls within textile category designation 606. 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. COUNTRY OF ORIGIN - LAW AND ANALYSIS: On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. §3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by 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 5401-5406 A change to heading 5401 through 5406 from any other heading, provided that the change is the result of an extrusion process. As the polyester thread is of heading 5402, and is extruded in a single country, Japan, as per the terms of the tariff shift requirement, country of origin is conferred in Japan. HOLDING: The country of origin of the polyester thread is the country where it is extruded - Japan. Based upon international textile trade agreements products of Japan require a visa but are not subject to quota. 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 C.F.R. §177.9(b)(1). This sections 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 C.F.R. §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 C.F.R. §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 Camille Ferraro at 212-637-7086. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division