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NY I87565

November 6, 2002

CLA2-RR:NC:N3:351 I87565


Jack Alsup
Alsup & Alsup, Inc.
P.O. Box 1251
Del Rio, TX 78841

RE: Classification and country of origin determination for a dock line; 19 CFR 102.21(c)(2); tariff shift

Dear Mr. Alsup:

This is in reply to your letter dated October 21, 2002, on behalf of your client, Wellington Leisure Products, Inc., requesting a classification and country of origin determination for a dock line that will be imported into the United States.


The subject merchandise consists of a nylon filament rope with each end folded back upon itself and braided into a loop; the sample we received, catalog number 87731, is looped at only one end, with the other end sealed by a hot knife. The loops are used to moor boats to cleats.

The manufacturing operations for the dock line are as follows: the nylon filaments are extruded in Virginia. The extruded filaments are purchased by Wellington and shipped to a plant in Georgia where they are twisted together into various size yarns, then into strands for rope. For the dock line, three strands, each approximately ¼”, are twisted together to form the rope, which is approximately 3/8” in diameter. The rope is sent to Mexico where it is looped at one or both ends and packaged for retail sale. The package is marked “Made in USA.”


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


The applicable subheading for the dock line will be 5609.00.3000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Articles of yarn, . . . twine, cordage, . . . not elsewhere specified or included: . . . Of man-made fibers.” The general rate of duty will be 5.4 percent ad valorem.


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Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996.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

(1) If of continuous filaments . . . the country of origin of a good classifiable under heading 5609 is the country, territory, or insular possession in which those filaments . . . were extruded.

As the dock line is manufactured from continuous nylon filaments that were extruded in a single country, that is, the U.S., as per the terms of the tariff shift requirement, country of origin is conferred in the U.S. However, there is an exception for textile products from the United States that are sent abroad for processing. Section 12.130(c), Customs Regulations, provides that any product of the United States that is returned after having been advanced in value or improved in condition abroad, or assembled abroad, shall be a foreign article.

Section 12.130, which remains in effect, was originally intended to be used to determine the country of origin of textiles and textile products for quota/visa requirements. In T.D. 90-17, issued February 23, 1990, Customs announced a change in practice and position. This change resulted in Customs using Section 12.130 for quota, duty, and marking purposes when making country of origin determinations for textile goods. In accordance with T.D. 90-17 and Section 12.130(c), the country of origin of the dock lines made from U.S.-extruded nylon, for quota, marking, and duty purposes, is the country in which the final assembly process occurs, that is, Mexico.

However, this position has recently been modified. On July 11, 2000, Customs published T.D. 00-44 in the Federal Register (65 FR 42634), stating that effective October 10, 2000, Customs will no longer apply 19 CFR 12.130(c) for purposes of country of origin marking. Therefore, in accordance with T.D. 00-44, Section 12.130(c) and Section 102.21(c)(2), the country of origin of the completed nylon dock line will be the United States. Section 12.130(c) remains in effect for duty and quota purposes and the completed dock line is subject to the general rate of duty noted previously (5.4%).

If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase “Made in the USA” or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the U.S.


The country of origin of the dock line is the U.S. However, for duty purposes, the country of origin is Mexico. There are no quota restrictions or visa requirements for merchandise classified in subheading 5609.00.3000.

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 646-733-3102.


Robert B. Swierupski

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