Classification and country of origin determination for polyester thread; 19 CFR 102.21(c)(1); wholly obtained or produced in a single country.

NY G86845 February 12, 2001 CLA2-RR:NC:TA:351 G86845 CATEGORY: Classification Ralph Saunders Senior Trade Advisor Deringer Logistics Consulting Group 1 Lincoln Blvd., Suite 225 Rouses Point, NY 12979 RE: Classification and country of origin determination for polyester thread; 19 CFR 102.21(c)(1); wholly obtained or produced in a single country. Dear Mr. Saunders: This is in reply to your letter dated December 8, 2000, requesting a classification and country of origin determination for polyester thread which will be made in the United States, processed in Canada, and reimported into the United States. FACTS: The subject merchandise consists of white polyester thread. The manufacturing operations for the thread are as follows: according to your letter, white thread is extruded from U.S. polyester and formed in the United States. It is then shipped to Canada where some of it is dyed black. Both the black and white threads are then spooled and reimported into the United States. ISSUE: What are the classification and country of origin of the subject merchandise? CLASSIFICATION: The applicable subheading for the white thread will be 9801.00.1097, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad: other: other. The mere spooling of thread does not qualify as an operation that advances the thread in value or improves its condition. Products in subheading 9801.00.1097 are free of duty. 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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 white thread was wholly obtained or produced in a single country, that is, the United States, country of origin is conferred in the United States. Because of the dyeing, the thread which is dyed black in Canada is the subject of review before Customs Headquarters. The classification and country of origin of the black thread will be ruled on by the Office of Regulations and Rulings at Headquarters and you will receive a response directly from that office. HOLDING: The country of origin of the white thread is the United States. 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