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

NY E87589 September 23, 1999 CLA-2-RR:NC:TA:351 E87589 CATEGORY: Classification Mr. George Stockton Coats American P.O. Box 729 Old Fort, NC 28762 RE: Classification and country of origin determination for embroidery thread; 19 C.F.R. §102.21(c)(2); tariff shift Dear Mr. Stockton: This is in reply to your letter dated September 9, 1999, requesting a classification and country of origin determination for embroidery thread which will be imported into the United States. FACTS: The subject merchandise consists of 100 percent rayon 2-ply filament yarn. For purposes of this ruling we will assume that the rayon is viscose rayon. The manufacturing operations for the yarn are as follows: Rayon fiber is extruded in Germany. It is shipped to China where it is twisted into a two ply yarn. It is then shipped to Vietnam where it is dyed and wound onto cones weighing 145 grams each. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the yarn will be 5403.41.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for artificial filament yarn, not put up for retail sale, other yarn, multiple (folded) or cabled: of viscose rayon. The rate of duty will be 9.1 percent ad valorem. 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Section 334 of that Act (codified at 19 U.S.C. §3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 a result of an extrusion process. Section 102.21(e) states that the change must be from any heading outside of heading 5401 through 5406 and be the result of an extrusion process. As the rayon yarn is extruded from cellulosic material classified in another chapter of the Harmonized Tariff Schedule to rayon yarn of heading 5403, it meets the tariff shift requirement of Section 102.21(c)(2). HOLDING: The country of origin of the rayon yarn is Germany. There are no quota restrictions or visa requirements from Germany. 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