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NY 888693

August 16, 1993

CLA-2-98:S:N:N6:351 888693


TARIFF NO.: 5810.92.0080; 9802.00.8060

Mr. Steve Liptak
Inter-Maritime Forwarding Co. Inc.
156 William Street
New York , NY 10038

RE: The tariff classification and country of origin of re-embroidered lace fabric from the Philippines.

Dear Mr. Liptak:

In your letter dated July 29, 1993, on behalf of Val Mode Lingerie, you requested a country of origin ruling.

You have submitted two samples of lace fabrics, as follows: first, a swatch of American-made lace purchased in yardage on rolls and, second, a swatch of the same fabric after it has been re-embroidered in the Philippines. It will be returned to Val Mode on rolls and no cutting will be done to this lace while in the Philippines. The re-embroidery work done in the Philippines consists of sewing gimped yarns on to the base material to highlight and outline the lace pattern. The U.S. ground material appears to be of real lace construction, and it has an open-work floral pattern. The fabrics, with scalloped edges, measure 3 3/4 inches in width.

The applicable subheading for the re-embroidered lace imported from the Philippines will be 5810.92.0080, Harmonized Tariff Schedule of the United States (HTS), assuming that the ground fabric is of man-made fibers and not knitted. This subheading provides for embroidery in the piece, ..., other embroidery, of man-made fibers, other, other. The rate of duty will be 16 percent ad valorem.

The re-embroidered lace falls within textile category designation 229. Based upon international textile trade agreements products of the Philippines are subject to quota and the requirement of a visa.

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. Since 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.

Also, because the lace's original ground fabric is of U.S. origin, an allowance may be made for the value of this supplied American-made portion of the material returned from the Philippines, if the requirements of the Customs Regulations are met, under subheading 9802.00.8060, HTS. This subheading provides for articles assembled abroad in whole or in part of fabricated components, the product of the United States.

Val Mode indicates their intent is to make garments in Mexico under "807 Special Regime" (i.e. under 9802.00.8010, HTS). Besides the re-embroidered lace described above, all materials to be used in the garments will be made in the United States. The fabrics, including the lace, are sent to El Paso, Texas for cutting before shipment to Mexico for assembly. You ask, on behalf of your client, whether the re-embroidering of the lace in the Philippines excludes these garments from qualifying under "807 Special Regime", or whether the lace is still considered to be formed and finished in the United States.

The country of origin of the American-made lace re-embroidered in the Philippines will be the Philippines, not the United States. In HTS chapter 98, which covers "Articles Exported and Returned, Advanced or Improved Abroad"; Subchapter II, U.S. Note 2 (a) states that "... any imported article which has been assembled abroad in whole or in part of products of the United States, shall be treated for the purposes of this Act as a foreign article."

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

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


Jean F. Maguire
Area Director

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