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NY H86968




January 29, 2002

CLA2-RR:NC:2:238 H86968

CATEGORY: CLASSIFICATION

Barbara Dawley, Esq.
Meeks & Sheppard
1735 Post Road, Suite 4
Fairfield, CT 06430

RE: Classification and country of origin determination for Gauze Sponges; 19 CFR 102.21(c)(4); 19 CFR 102.19(a)

Dear Ms. Dawley:

This is in reply to your letter dated January 8, 2002, on behalf of your client, Johnson & Johnson Medical, Div. Of Ethicon, Inc., requesting a classification and country of origin determination for gauze sponges, which will be imported into the United States.

The subject merchandise consists of gauze sponges. The gauze material, which, you assert, is properly classifiable under heading, 5208, HTS, is manufactured in China and then imported into Canada in rolls. While in Canada, the cotton gauze fabric will be slit to width, cut to length, folded multiple times to produce sponges, sterilized and packaged. At the time of importation into the U.S. from Canada, the gauze sponges will be put up in packages suitable for retail sale for medical and/or surgical purposes.

The applicable subheading for the gauze sponges will be 3005.90.5090, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes: Other: Other: Other.” The general rate of duty will be free. 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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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

3005.90 If the good contains pharmaceutical substances, a change to subheading 3005.90 from any other heading; or if the good does not contain pharmaceutical substances, a change to subheading 3005.90 from any other heading except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5601 through 5603, 5801 through 5804, 5806, 5809, 5903, 5906 through 5907, and 6001 through 6002.

As the fabric for the subject merchandise, when imported from China into Canada is classified in heading 5208, HTS, it is precluded from the tariff shift. Accordingly, 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 not knit (to shape or otherwise), and there are no assembly operations which take place, 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, we find that the fabric-making process undertaken in China constitutes the most important manufacturing process in the production of the gauze sponges. See HQ 959834 dated October 9, 1996. Accordingly, it is our determination that the country of origin of the gauze sponges is China.

However, as stated in Section 102.19(a) of the Customs Regulations: “Except in the case of goods covered by paragraph (b) of this section, if a good which is originating within the meaning of § 181.1(q) of this chapter is not determined under § 102.11(a) or (b) or § 102.21 to be a good of a single NAFTA country, the country of origin of such good is the last NAFTA country in which that good underwent production other than minor processing, provided that a Certificate of Origin (see § 181.11 of this chapter) has been completed and signed for the good

As this merchandise qualifies as a NAFTA originating good, applying the terms of Section 102.19(a) of the Customs Regulations, the country of origin of the subject merchandise is Canada.

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 Harvey Kuperstein at 646-733-3033.

Sincerely,

Robert B. Swierupski

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