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NY F87001




June 2, 2000

CLA2-RR:NC:TA:351 F87001

CATEGORY: CLASSIFICATION

Chris Guo
Textile Resources, Inc.
300 Northern Blvd.
Suite 14
Great Neck, NY 11021

RE: Classification and country of origin determination for chenille yarns; 19 CFR 102.21(c)(4)

Dear Mr. Guo:

This is in reply to your letter dated May 9, 2000, requesting a classification and country of origin determination for chenille yarns of man-made fibers which will be imported into the United States.

FACTS:

You have submitted a request covering six types of chenille yarns, which you have identified as:

RC550 (100% rayon chenille yarn, 1.1Nm);
RC1000 (100% rayon chenille yarn, 2 Nm);
RC1450 (100% rayon chenille yarn, 3 Nm);
RC2000 (100% rayon chenille yarn, 4 Nm);
AC1450 (100% acrylic chenille yarn, 3 Nm), and AC2000 (100% acrylic chenille yarn, 4 Nm).

You have supplied a sample of AC2000.

You state that the chenille yarn is manufactured in Taiwan with component yarns spun in Thailand. Four ends of component yarns (two effect yarns and two core yarns) are fed into the chenille machine in which a blade cuts the effect yarns into a specific length; then, the core yarns bind the cut effect yarns together by twisting them.

ISSUE:

What are the classification and country of origin of the subject merchandise?

CLASSIFICATION:

The applicable subheading for the chenille yarns will be 5606.00.0090, Harmonized Tariff Schedule of the United States (HTS), which provides for chenille yarn. The rate of duty will be 9.4 per cent.

Chenille yarn falls within textile category designation 201.

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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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

5605 – 5606 If the good is of staple fibers, a change of those fibers to heading 5605 through 5606 from any other heading, except from heading 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided that the change is a result of the spinning process.”

Section 102.21(e) states that the change must be as a result of a spinning process. Accordingly, as the chenille yarn does not undergo such a process in Taiwan, 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 merchandise is neither knit, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable.

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".

In the case of the subject merchandise, the spinning constitutes the most important assembly process. Accordingly, the country of origin of the yarn is Thailand.

HOLDING:

The country of origin of the yarn is Thailand. Based upon international textile trade agreements products of Thailand are subject to quota and the requirement of a visa. At the present time, there is no quota on merchandise in category 201 from Thailand, but there is a visa requirement.

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.

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,

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