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HQ

559655

December 2, 1996

MAR-05 RR:TC:SM

CATEGORY: MARKING

Mr. Alan Litwin
F.W. Myers & Co., Inc.
405 North French Road, Suite 100
Amherst, NY 14226

RE: Country of origin marking of textile strip; assembly; 19 CFR 102.21(c)(ii)

Dear Mr. Litwin:

This is in further reference to your letter dated April 25, 1994, on behalf of Dynatex Textiles Inc., requesting the classification of a textile strip imported from Canada and the proper country of origin marking for such product.

The classification and origin issues were addressed in NY Letter Ruling 897623 dated April 6, 1995. However, since the country of origin of the subject product is now governed by the Rules of Origin for Textile and Apparel Products, which became effective after the date of NY Ruling NY 897623, we are issuing this ruling addressing the origin question under the new rules.

FACTS:

The subject of this ruling consists of a one inch wide bias cut fabric with a one-half inch wide reflective plastic strip laminated longitudinally along the center of the fabric. This is the kind of material that would be sewn or attached to garments, back packs or similar products as a safety feature.

Dynatex states that their supplier, in Canada, receives woven 65/35 (polyester/cotton), full width, greige goods from manufacturers in China, Pakistan or Korea. In Canada, the goods are scoured, desized, bleached, singed, dyed, and a permanent stiffener and anti-shrink resin are applied. The goods are then shipped to Dynatex's facility in Canada, where they go through a tubular sewing operation. The goods are then reopened on a bias machine. The bias formed fabric is then put on a slitting machine and cut to width specification, which, in this case, is one inch. The
reflective strip is then laminated to the fabric. The reflective strip is a thin plastic sheet encapsulating very small beads of either glass or of some other reflective material and is made in the United States.

ISSUE:

What is the country of origin of the imported reflective textile strip?

LAW AND ANALYSIS:

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. ?1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. ?1304.

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act 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 is 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) states, in pertinent part, that the country, territory or insular possession in which "[A] change to subheading 5901 through 5903 from any other heading [occurs], including a heading within that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5803, 5806, 5808, and 6002, and provided that the change is the result of a fabric-making process," will be the country of origin for the textile articles. The subject reflective strips are classifiable under subheading 5903.90.25, Harmonized Tariff Schedule of the United States (HTSUS), which provides for, in pertinent part, Textile fabrics ...covered or laminated with plastics, : Other, Of manmade fibers: not over 70 percent by weight plastic. The reflective plastic material is not identified as to the type of plastic, but such material would be classified as a plastic strip under heading 3920, HTSUS. The material imported into Canada is classifiable under heading 5513, HTSUS, as a woven fabric.

Since the woven fabric is classifiable under heading 5513, 19 CFR 102.21(c)(2) is not applicable. Therefore, we must proceed to section 102.21(c)(3), the next rule under the hierarchal rules, to determine whether it is applicable. This rule provides as follows:

(3) 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.

The finished good was not knit to shape, and, therefore, section 102.21(c)(3)(i) is inapplicable.

Section 102.21(b)(6) defines wholly assembled as :

The term "wholly assembled" when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, territory, or insular possession. Minor attachments and minor embellishments (for example, appliques, beads, spangles, embroidery, buttons) not appreciably affecting the identity of the good, and minor subassemblies (for example, collars, cuffs, plackets, pockets), will not affect the status of a good as "wholly assembled" in a single country, territory, or insular possession.

As the textile strip was wholly assembled in Canada, section 102.21(c)(3)(ii) is applicable, and the country of origin of the article is Canada.

HOLDING:

The country of origin of the reflective textile strip is Canada. The article should be appropriately marked when imported into the U.S.

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 177.9(b)(1), Customs Regulations (19 CFR 177.9(b)(1)). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication is accurate and complete in every material respect. 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, it is recommended that a new ruling request be submitted in accordance with section 177.2, Customs Regulations (19 CFR 177.2).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

John

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