Classification, country of origin determination, and marking for polyester cord; 19 CFR 102.21(c)(4).

NY G85071 December 28, 2000 CLA2-RR:NC:TA:351 G85071 CATEGORY: Classification Maria D. Cimino Import manager Geolistics Americas 310 McClellan Hwy. East Boston, MA 02128 RE: Classification, country of origin determination, and marking for polyester cord; 19 CFR 102.21(c)(4). Dear Ms. Cimino: This is in reply to your letter dated December 4, 2000, requesting a classification and country of origin determination for polyester cord which will be imported into the United States. FACTS: The subject merchandise consists of polyester cord. The manufacturing operations for the cord are as follows: In Taiwan, PTA, which we presume to be a derivative of terephthalic acid and which was manufactured in China, and ethylene glycol which was manufactured in Taiwan, are used to produce polyester yarn. The yarn is shipped to China where it is braided into cord on a braiding machine. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the polyester cord will be 5607.50.4000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Twine, cordage, . . .whether or not plaited or braided . . .: . . .Of other synthetic fibers: . . .Other.” The rate of duty will be five percent ad valorem. The rate in 2001 will be 4.7 percent ad valorem. Subheading 5607.50.4000 falls within textile category designation 669. The designated textile and apparel categories and their quota and visa status are the result of international agreements that are subject to frequent renegotiations and changes. To obtain the most current information, we suggest that you check, close to the time of shipment, the U.S. Customs Service Textile Status Report, an internal issuance of the U.S. Customs Service, which is available at the Customs Web Site at WWW.CUSTOMS.GOV. In addition, 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 and should also be verified at the time of shipment. 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 5607 “If the good is of continuous filaments, . . . a change of those filaments . . . to heading 5607 from any other heading, except from heading 5001 through 5007, 5401 through 5406, and 5501 through 5511, and provided that the change is the result of an extrusion process . . . .” The original polyester yarn would be classified under heading 5402 (if less than 67 decitex) or 5404 (if 67 decitex or greater). Accordingly, as both headings are excepted, the tariff change in the manufacture of the cord does not meet the criteria of Section 102.21(e), and 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 rope is not knit to shape, provision (i) of Section 102.21(c)(3) is not applicable. Additionally, as the processes of twisting and/or braiding are considered manufacturing processes and not “assembly” operations as per the terms of Section 102.21, provision (ii) is also not applicable. Accordingly, the subject merchandise does not satisfy paragraph (c)(3). 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". The Section 334 rules explicitly state that, in the case of yarn, thread, twine, cordage, rope, cable, or braiding, if of a synthetic monofilament, what is considered the most important manufacturing process is the extrusion of the continuous filament. Accordingly, as per Section 102.21(c)(4), the country of origin of the cord is Taiwan and it must be marked as such. HOLDING: The country of origin of the cord is Taiwan. Based upon international textile trade agreements products of Taiwan are subject to quota and the requirement of a visa. 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 Mitchel Bayer at 212-637-7086. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division