NY G80713 - Country of origin determination for flags; 19 CFR 102.21(c)(2); tariff shift - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 2000 NY Rulings > NY G80670 - NY G80715 > NY G80713

Previous Ruling Next Ruling
NY G80713

September 18, 2000

CLA2-RR:NC:TA:351 G80713

CATEGORY: CLASSIFICATION

Michael B. Pullano
McCarter & English, LLP
Attorneys at Law
One Commerce Square
2005 Market Street
Suite 3600
Philadelphia, PA 19103

RE: Country of origin determination for flags; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Pullano:

This is in reply to your letter dated August 16, 2000, requesting a country of origin determination for flags which will be manufactured in the United States from fabric imported from Pakistan.

FACTS:

The subject merchandise consists of flags.

The manufacturing operations for the flags are as follows: the cotton fabric is manufactured in Pakistan and imported in the greige state into the United States. Your letter states, “Please note that all the remaining manufacturing processes, involving the material in question, occur in the United States.” These steps, according to your letter, are as follows: the fabric is singed, washed, bleached, shrunk, and dried; framed for sizing and folding purposes; printed; washed, resins added (stiffening), dried and framed. The flag is finished by being cut, sewn, and mounted on a wood staff.

ISSUE:

What is the country of origin of the subject merchandise, and what would be allowable country of origin marking?

COUNTRY OF ORIGIN - LAW AND ANALYSIS:

On December 8, 1994, the President signed into law the Uruguay Round Agreements Act (URAA). Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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

6307.90 The country of origin of a good classifiable under subheading 6307.90 is the country . . . in which the fabric comprising the good was formed by a fabric-making process.

As the fabric is woven in a single country, that is, Pakistan, as per the terms of the tariff shift requirement, country of origin is conferred in Pakistan.

Your letter asks about the recent amendment to Section 334(b)(2) of the URAA, specifically language that makes the country of origin for fabric that country in which the fabric was both dyed and printed. Since the fabric in the instant case was not both printed and dyed, but only printed, this amendment has no effect on the country of origin of the fabric or the flags. Further, the subheading under which the flags are classifiable, 6307.90, HTS, is not listed among those affected.

Approval of markings of "Made in the U.S.A." is in the jurisdiction of the Federal Trade Commission and not the Customs Service. In order to get approval for marking the flags "Made in the U.S.A. of fabric woven in Pakistan," as you request, you should contact the Federal Trade Commission. Therefore, we suggest that you contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508, as to whether the proposed marking satisfies such requirements. However, please note that the flags are not made in the U.S.A., but are made in Pakistan.

Your alternative request, “Finished and sewn in the U.S.A., of material woven in Pakistan” would not be acceptable because it does not indicate the country of origin of the flag, which is Pakistan.

You also ask about marking requirements for the wooden staffs to which the flags are attached in the U.S. Section 304(a) of the Tariff Act of 1930, as amended (19 U.S.C. §1304(a)), requires that articles of foreign origin imported into the United States be marked in such a manner as to indicate to the ultimate purchaser in the United States the country of origin of the imported merchandise. Nevertheless, there is an exception to this requirement for articles used in manufacture and which result in the articles having a name, character, or use differing from that of the imported articles (U.S. v. Gibson- Thomsen Company, Inc., 27 C.C.P.A. 267, C.A.D. 98 (1940)). In such a case, the U.S. manufacturer who converts or combines the imported merchandise into the different article will be considered the ultimate purchaser and the article will be exempt from marking. See section 134.35, Customs Regulations (19 C.F.R. §134.35).

HOLDING:

The country of origin of the flag is Pakistan.

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,

Previous Ruling Next Ruling